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Nebraska State Income Tax on Social Security Now Set to End 5 Years Sooner

Tax return forms and documents

The Nebraska Legislature this year passed legislation eliminating state income tax on Social Security, beginning with the 2025 tax year. The measure speeds up the timeline from the previous end date of 2030.

AARP Nebraska has long fought to lessen the burden of state taxes on Social Security beneficiaries. Currently, beneficiaries with incomes below $59,960 for a married couple and $44,460 for a single individual are exempt from paying state income tax on their benefits.

The new law, which takes effect in July, phases out the tax completely by 2025. As part of the phaseout, older Nebraskans may take a 40 percent exemption on their Social Security income in 2022, 60 percent in 2023 and 80 percent in 2024. Learn more at

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