Lincoln, NE Taxes 2025
Complete local tax guide and OBBBA calculator
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Lincoln Tax Overview 2025
State capital with high property taxes. University town.
Local Income Tax
0%
City/county rate
Sales Tax
7.25%
State + local
Property Tax
1.76%
Effective rate
Median Home
$230,000
Home value
No Local Income Tax!
Lincoln does not impose a local income tax on residents, which means you only pay state income tax (if applicable) and federal taxes.
State Tax Information
Lincoln is located in Nebraska (2.46% - 5.84% state income tax)
💼 Lincoln Local Income Tax
Lincoln does not impose a local income tax on residents. Your income tax obligations are limited to state income tax (if applicable in Nebraska) and federal income tax.
This is good news for Lincoln residents, as it means one less tax to worry about compared to cities that do impose local income taxes.
Total Income Tax Burden in Lincoln
🛒 Lincoln Sales Tax 2025
The combined sales tax rate in Lincoln is 7.25%. This includes both the Nebraska sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Lincoln. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Nebraska law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.63 | $53.63 |
| $100 | $7.25 | $107.25 |
| $500 | $36.25 | $536.25 |
| $1,000 | $72.50 | $1,072.50 |
🏠 Lincoln Property Tax 2025
The average effective property tax rate in Lincoln is 1.76%. Based on the median home value of $230,000, the typical homeowner pays approximately $4,048 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Lincoln based on school district and other taxing authorities.
Estimated Annual Property Tax in Lincoln
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $3,520 | $293 | ✓ Yes |
| $300,000 | $5,280 | $440 | ✓ Yes |
| $400,000 | $7,040 | $587 | ✓ Yes |
| $500,000 | $8,800 | $733 | ✓ Yes |
| $750,000 | $13,200 | $1,100 | ✓ Yes |
| $1,000,000 | $17,600 | $1,467 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Lincoln Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Lincoln Residents
High property taxes make SALT cap increase valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Lincoln resident.
Available OBBBA Deductions:
Calculate Your Lincoln Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Lincoln resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Lincoln?
The combined sales tax rate in Lincoln is 7.25%. This includes both state and local sales taxes.
Does Lincoln have a local income tax?
Lincoln has a local income tax of 0%. This is in addition to any state and federal income taxes.
What is the property tax rate in Lincoln?
The average effective property tax rate in Lincoln is 1.76%. On a home worth $230,000, you'd pay approximately $4,048 per year.
How do OBBBA deductions benefit Lincoln residents?
High property taxes make SALT cap increase valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.