What is the capital gains tax rate in Nebraska?

Nebraska does not have a separate capital gains tax rate - it treats capital gains as part of regular state income taxes.

State income tax rates in Nebraska range from 2.46% to 6.84%, depending on your total taxable income, so your capital gains will be taxed at those rates.

Nebraska's state income tax calculator can be used to estimate the capital gains tax owed based on your overall income level.

For real estate transactions, the capital gains tax applies to any profit made from the sale of a property in Nebraska.

However, homeowners may be eligible for certain exclusions or exemptions that can reduce the taxable capital gains, such as up to $250,000 for single filers or $500,000 for married couples filing jointly.

To qualify for the home sale exclusion, the home must have been the primary residence for at least two years out of the five-year period before the sale.

Nebraska's capital gains tax rules are similar to the federal capital gains tax, which currently has rates of 0%, 15%, and 20% depending on your taxable income.

Investors in Nebraska should be aware that short-term capital gains (on assets held less than a year) are taxed at the same rates as regular income.

Nebraska allows taxpayers to deduct a portion of their federal capital gains taxes when calculating their state income tax liability.

The state's tax authorities closely monitor real estate transactions to ensure proper reporting and payment of capital gains taxes.

For investors with significant capital gains, moving to a state with no state capital gains tax, like Wyoming or Florida, could result in substantial tax savings.

Nebraska's capital gains tax laws have remained relatively stable in recent years, with no major changes anticipated in the near future.