Bonus Tax in Nebraska (2026)

A bonus is supplemental pay, and it is usually withheld at a flat federal rate rather than your normal bracket. Employers apply 22% to supplemental wages up to a yearly threshold, and a higher rate on the part above it. FICA comes out on top, and then the Nebraska state layer applies.

Nebraska withholds supplemental wages (bonuses, commissions) at 3.5% on top of the federal 22% and FICA. Nebraska flat supplemental/bonus withholding rate is 3.5% for 2026 (2026 Circular EN).

Worked example: a $5,000 bonus in Nebraska

Federal withholding (22%)$1,100
FICA (Social Security + Medicare)$383
Nebraska withholding$175
Total withheld$1,658
You keep about$3,342

Assumes year-to-date wages under the $184,500 Social Security wage base. Withholding, not final tax — it reconciles on your return.

Bonus tax calculator (2026)

Federal withholding (flat 22%)$1,100
FICA (Social Security + Medicare)$383
Nebraska withholding (3.5%)$175
You keep about$3,342

Assumes your year-to-date wages are under the $184,500 Social Security wage base. Withholding, not your final tax — it reconciles on your return.

See what your regular paycheck keeps in Nebraska: Nebraska paycheck calculator.

Frequently asked questions

Why is my bonus taxed so high?

What you see is withholding, not your final tax. Federal rules withhold supplemental pay like a bonus at a flat 22%, which is often more than your normal rate, so the bonus looks heavily taxed. It squares up when you file, where your real rate is applied to your total income.

Does Nebraska have a flat bonus withholding rate?

It depends on the state. The breakdown above shows Nebraska's supplemental rate if it has one, or notes when the aggregate method applies instead.

Federal: IRS 2026 brackets (Rev. Proc. 2025-32) · FICA: IRS Topic 751 · Wage base: SSA · Nebraska: Nebraska Department of Revenue. Rates current as of July 16, 2026. Annual-liability estimates, not payroll withholding — see methodology.