Nebraska Minimum Wage After Tax 2026

Nebraska Minimum Wage After Tax in 2026

A full-time Nebraska worker at $15.00 an hour grosses $31,200 a year. After $1,564 in federal income tax, $2,387 in FICA and $565 in state income tax, take-home pay is about $26,684 a year, or $2,224 a month and $513 a week.

Nebraska Initiative 433 set the 2026 rate at $15.00/hr. Headed to $14 in 2027 and $15 in 2028. Agricultural exemptions apply. Calculate your exact take-home pay below.

Nebraska Minimum Wage 2026: Initiative 433 and the Path to $15

Nebraska voters made a clear statement in November 2022: they want a higher minimum wage, and they want it on a schedule they control. Initiative 433, passed with approximately 58% voter approval, established a phased increase from $9.00 per hour to $15.00 per hour by 2028, with CPI indexing thereafter. As of January 1, 2026, Nebraska's minimum wage is $15.00 per hour -- the third step in the four-step increase schedule.

Initiative 433: The Full Schedule

Nebraska Initiative 433 established the following minimum wage schedule:

Businesses should verify the exact schedule with the Nebraska Department of Labor, as the specific step amounts for each year should be confirmed against the official NDOL wage schedule publication for 2026.

Agricultural Worker Exemptions: Significant in Nebraska

Nebraska's agricultural exemptions are more practically significant than in most states, given Nebraska's identity as one of the country's top agricultural states. Nebraska is a leading producer of corn, soybeans, beef cattle, and pork. The Nebraska minimum wage law exempts certain agricultural workers, particularly those employed on farms and ranches by members of their own family, and workers employed in agricultural occupations that fall under federal FLSA agricultural exemptions. Commercial food processing operations -- such as beef packing plants operated by large companies in Lexington, Grand Island, and Dakota City -- typically do fall under the standard minimum wage, not the agricultural exemption, because they are manufacturing operations rather than farm operations. Workers uncertain about their coverage should contact the Nebraska Department of Labor.

Tipped Minimum Wage: $2.13 Per Hour

Nebraska's tipped minimum wage is $2.13 per hour -- the same as the federal minimum for tipped employees and one of the lowest direct tipped wages in the country. Nebraska allows the full federal tip credit, meaning employers can pay tipped workers as little as $2.13 per hour directly, provided that tips bring the total to at least $15.00 per hour for the workweek. If tips plus $2.13 fall short of $15.00, the employer must make up the difference. The gap between $2.13 and $15.00 ($11.37) is entirely the employer's tip credit claim -- a worker who receives no tips in a given week must still be paid $15.00 per hour by the employer for that week.

Omaha and Lincoln: Nebraska's Cost Centers

Nebraska's two largest cities -- Omaha and Lincoln -- have higher costs of living than the state's rural areas, though both remain significantly more affordable than coastal metro areas. Omaha's median one-bedroom apartment rent runs approximately $950 to $1,200 per month, while Lincoln's median rents are somewhat lower. A full-time Nebraska minimum wage worker taking home approximately $23,200 per year ($1,933 per month) faces housing that consumes roughly 49% to 62% of monthly take-home pay at median rents in these cities -- challenging but not as extreme as coastal markets.

Neither Omaha nor Lincoln has enacted a city minimum wage above the state floor. Nebraska has not preempted local wage ordinances legislatively, but no major Nebraska city has moved to establish its own minimum wage as of 2026.

No City-Specific Minimums in Nebraska

Unlike neighboring Missouri, Nebraska has not seen its major cities push for local wage floors above the state rate. Omaha, Lincoln, Bellevue, and other Nebraska cities all operate under the uniform $15.00 statewide rate. The Initiative 433 schedule provides a defined roadmap to $15.00 by 2028, which may reduce the pressure for local action since workers statewide know increases are coming on a predictable timeline.

Nebraska State Income Tax at Minimum Wage

Nebraska has a progressive income tax with rates from 2.46% to 6.84%. Recent legislation has been phasing down Nebraska's top income tax rate, with reductions scheduled through the late 2020s. At the $28,080 gross income level of a full-time minimum wage worker, after Nebraska's standard deduction, most single filers face an effective state tax rate of approximately 4.55% -- the rate applying to income in the mid-bracket range. Nebraska's income tax on minimum wage workers is moderate within the Midwest.

Frequently Asked Questions