This bill amends sections 77-2715.03 and 77-2734.02 of the Revised Statutes Cumulative Supplement, 2024, to modify the individual and corporate income tax rates in Nebraska. For individual income tax, the bill introduces a new rate of 4.99% for taxable years beginning on or after January 1, 2026, replacing the previous rate of 4.55%. Additionally, the bill specifies that the tax rate for corporate taxpayers will also be adjusted to 4.99% for taxable years beginning on or after January 1, 2026, down from 4.55%. The bill further outlines the tax rates applicable for various income brackets and establishes a schedule for future adjustments based on inflation.

The legislation also includes provisions for the Tax Commissioner to update tax rate schedules and prepare tax tables for taxpayers. It mandates that the minimum and maximum dollar amounts for each income tax bracket be adjusted for inflation starting from 2015, ensuring that the tax brackets remain relevant over time. The original sections of the statutes being amended are repealed, indicating a comprehensive update to the tax code as it pertains to individual and corporate income tax rates in Nebraska.

Statutes affected:
Introduced: 77-2715.03, 77-2734.02