Nebraska Department of Revenue Updates Income Tax Withholding for 2027

The Nebraska Department of Revenue has released a new Circular EN for 2027, introducing updated income tax withholding tables for wages, pensions, annuities, and gambling winnings. These new tables are effective for payments made on or after January 1, 2027.

Employers are reminded that state copies of 2026 Forms W-2, W-2G, 1099-MISC, 1099-NEC, 1099-R, and the Nebraska Reconciliation of Income Tax Withheld, Form W-3N, are due by January 31, 2027. An e-file requirement is in place for employers reporting over 50 forms for tax year 2026.

The "special income tax withholding rate" will remain at 1.5%. Additionally, spouses of active duty military servicemembers whose income is exempt from Nebraska tax can utilize Form 9N, the Nebraska Nonresident Employee Certificate for Allocation of Income Tax Withholding, to exempt their wages. The Department encourages e-filing forms instead of mailing them.