Does Nebraska tax pensions and retirement income?
Taxed, with narrow exceptions
Yes, generally. Nebraska's return starts from federal adjusted gross income, so taxable pensions and IRA withdrawals are included. Military retirement benefits are fully excluded.
In the state's own words
Copied word for word from the official document linked below each quote:
“All military retirees are allowed to exclude 100% of the military retirement benefits from the income subject to Nebraska income tax to the extent included in federal AGI.”
And Social Security?
No, starting with 2024 returns. Nebraska removes all the Social Security that is in your federal adjusted gross income. The Nebraska Social Security page quotes the rule.
Federal tax still applies
Whatever Nebraska does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Nebraska Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- 2025 Nebraska Individual Income Tax BookletNebraska Department of Revenue. Read on November 12, 2026.