State Income Tax
: 2.56% to 6.84% State Sales Tax
: 5.5% Estate Tax/Inheritance Tax
Retirees harvest no tax breaks on Social Security benefits or out-of-state government pensions in the Cornhusker State. Its top rate of 6.84% kicks in when taxable income passes $27,000 for individuals and $54,000 for married couples filing jointly. Real estate is assessed at 100% of fair market value. Residents 65 and older may qualify for a homestead exemption on property taxes. Food and prescription drugs are exempt from state sales taxes. But Nebraska, home to billionaire Warren Buffett, imposes an inheritance tax on transfers of property and annuities.
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