Nebraska Payroll Compliance
Every rate, wage base, and threshold Nebraska employers need for 2026 — sourced from the Dept. of Revenue and Dept. of Labor — including a genuinely rare two-tier SUI wage base that most payroll systems aren't built to handle.
Minimum Wage & Hours
Nebraska’s minimum wage reached $15.00/hour in 2026, the final step of a voter-approved schedule. Starting in 2027, the rate switches from fixed dollar increases to annual 1.75% adjustments.
| Item | 2026 Value | Notes |
|---|---|---|
| Statewide minimum wage | $15.00/hr | Final step of the voter-approved increase schedule |
| 2027 adjustment method | +1.75% annually | Switches from fixed dollar steps to a percentage-based formula |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state daily overtime rule |
| Local wage ordinances | None | No Nebraska city or county sets its own minimum wage |
State Income Tax Withholding
Nebraska uses a graduated income tax topping out around 5.8%, with no local income tax layered on top anywhere in the state.
| Item | 2026 Value | Notes |
|---|---|---|
| Top marginal rate | ~5.8% | Graduated brackets; confirm exact current thresholds via NE DOR |
| Local income tax | None | No Nebraska city or county imposes one |
Unemployment Insurance (SUI)
Nebraska runs a genuinely unusual two-tier SUI wage base: most employers pay on the first $9,000 of wages, but employers assigned to the highest claims-rate category (Category 20) pay on a much larger $24,000 base instead. Nebraska and Rhode Island are the only two states with this structure.
| Item | 2026 Value | Notes |
|---|---|---|
| Standard SUI wage base | $9,000 | Applies to the large majority of Nebraska employers |
| High-claims tier wage base | $24,000 | Applies only to employers in the highest UI tax rate group (Category 20) |
| New employer rate (non-construction) | 1.25% | Standard entry rate |
| New employer rate (construction) | 5.40% | Significantly higher entry point for construction employers |