Gov. Pillen’s Historic Income Tax Cuts Effective in January

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Laura Strimple, (402) 580-9495

Gov. Pillen's Historic Income Tax Cuts Effective in January

LINCOLN, NE - Governor Jim Pillen, a champion for lower taxes, is highlighting the historic income tax cuts set to take effect in January as part of his Administration's ongoing commitment to reform Nebraska's tax system. The 2026 income tax rate will fall from 5.2% to 4.55%, with the final stage of the income tax reduction taking effect in 2027, when the rate drops again to 3.99%.

"As part of the largest tax cut package in state history, my Administration is making sure Nebraskans keep more of what they earn," said Gov. Pillen. "Our mission is simple: drive down the size and cost of government, while improving the services that taxpayers depend on. We're making Nebraska great for families - and keeping the 'Good Life' open for business."

Gov. Pillen signed LB754 into law in 2023, leading to these reductions, and has consistently opposed efforts to slow or pause this phased reduction in income tax cuts.

As a result of these tax cuts, for the third consecutive year under the Pillen Administration, Nebraska families will keep more of their hard-earned money.

"We've made historic progress, but I continue to believe that our tax system needs generational reform. There's more work to do to keep Nebraska the best place to live, build a business, and raise a family."