Nebraska Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Nebraska state income tax as a freelancer or 1099 contractor. Nebraska has a progressive income tax with a top rate of 5.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,712
Total Tax Owed
$21,104

Summary

Total Income
$75,000
Total Taxes
-$21,104
After-Tax Income
$53,896
Effective Tax Rate(on total income)
28.1%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,276
Q2 (Apr-May)Due June 15
$5,276
Q3 (Jun-Aug)Due September 15
$5,276
Q4 (Sep-Dec)Due January 15 (next year)
$5,276
Each Quarterly Payment
$5,276

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,276. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Nebraska Tax Overview for Freelancers

Nebraska has a progressive income tax with a top rate of 5.84%. The state has been gradually reducing its top rate. Self-employed individuals in Nebraska pay federal self-employment tax (15.3%) plus federal income tax, and Nebraska state income tax on their net self-employment earnings.

Progressive rates up to 5.84%Rates being reducedFortune 500 companies in OmahaPartial Social Security taxation

Self-Employment Taxes in Nebraska

If you work as a freelancer or independent contractor in Nebraska, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Nebraska state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Nebraska Income Tax for Freelancers

Nebraska has a progressive income tax with a top rate of 5.84%. The state has been gradually reducing its top rate.

Cost of Living for Freelancers in Nebraska

Nebraska's cost of living is about 10% below the national average. As a freelancer in Nebraska, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Nebraska Freelancers

  • Nebraska has been cutting its top income tax rate — current rates may be lower than expected
  • Nebraska's cost of living is well below the national average
  • Omaha is home to several Fortune 500 companies including Berkshire Hathaway
  • Nebraska partially taxes Social Security benefits above certain thresholds

Key Nebraska Tax Features

  • Progressive rates up to 5.84%
  • Rates being reduced
  • Fortune 500 companies in Omaha
  • Partial Social Security taxation

Model Your Nebraska Freelance Finances Over Time

This calculator shows your Nebraska tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Nebraska with Other States

South DakotaNo income taxIowa5.7% top rateMissouri4.8% top rateCalifornia13.3% top rateNew York10.9% top rateTexasNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Nebraska?
Self-employed workers in Nebraska pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Nebraska state income tax. Nebraska has a progressive income tax with a top rate of 5.84%. The state has been gradually reducing its top rate.
How much will I owe in quarterly taxes as a freelancer in Nebraska?
Your quarterly estimated tax payment in Nebraska depends on your total tax liability — including SE tax, federal income tax, and Nebraska state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Nebraska freelancers?
Freelancers in Nebraska can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Nebraska state taxable income, providing additional state tax savings.
Does Nebraska have any special taxes for self-employed workers?
Nebraska does not have a separate self-employment tax. However, your net self-employment income is subject to Nebraska's regular income tax (5.84% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Nebraska?
The decision to form an LLC or S-Corp in Nebraska depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Nebraska tax professional for advice specific to your situation.

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State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
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