Selling a business in Nebraska: what the state takes (2026)
Nebraska’s top individual income tax rate is 4.55%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 4.55%
- Top Nebraska income tax rate (2026)
- $1,137,500
- State tax on a $25M long-term gain
- 28.3%
- Combined federal and state rate on $25M
- 24 of 51
- Rank by total tax on $25M (1 = highest)
How Nebraska taxes a business sale
- Income tax
- Top rate 4.55%: Over $24,760 (single) per DOR draft 2026 schedule; the third and fourth brackets (over $24,760 and over $39,900) both carry 4.55% in 2026. Top rate falls to 3.99% for 2027..
- Long-term capital gains
- Capital gains are taxed as ordinary income at the 4.55% top rate for 2026; there is no general capital gains exclusion.
- Relief that applies only in some sales
- A one-time lifetime election (Neb. Rev. Stat. 77-2715.08 and 77-2715.09) lets a resident subtract the entire capital gain on stock of one corporation acquired on account of employment or while employed by it. The corporation must have done business in Nebraska for at least three years and, at the first sale, have at least five shareholders and at least two unrelated shareholders (or groups) each owning at least 10%. A founder who owns most of the company alone would usually fail the shareholder test; a company with several unrelated co-owners or an ESOP may qualify.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Nebraska tax | $455,000 | $1,137,500 | $2,275,000 |
| Total tax | $2,835,000 | $7,087,500 | $14,175,000 |
| Effective combined rate | 28.35% | 28.35% | 28.35% |
| Net proceeds after tax | $7,165,000 | $17,912,500 | $35,825,000 |
| Extra tax versus Texas | $455,000 | $1,137,500 | $2,275,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Nebraska tax
- $1,137,500
- Taxable gain at 4.55%
- $1,137,500
- Total tax
- $7,087,500
- Effective rate on the gain
- 28.35%
- Net proceeds after tax
- $17,912,500
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Nebraska figures are for tax year 2026. 2026 rate 4.55% per Neb. Rev. Stat. 77-2715.03(2)(c)(v); thresholds from DOR's 2026 tax calculation schedule, marked 'Draft as of 8/17/2026'. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1Neb. Rev. Stat. 77-2715.03 (rates by year)
- 2Nebraska DOR 2026 Tax Calculation Schedule (draft as of 8/17/2026)
- 3Neb. Rev. Stat. 77-2715.08 (special capital gains election definitions)
- 4Neb. Rev. Stat. 77-2715.09 (special capital gains election)
- 5Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of Feb 11, 2026). Secondary source
Data last updated October 26, 2026.
Cite this research
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Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Nebraska,” 2026, https://laurent.capital/research/seller-tax-map/nebraskaLink (HTML)
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