CALCMONEY // CAPITAL GAINS // NE
Nebraska adds 5.8% state tax on top of the 23.8% federal rate. On a $1M gain, total tax: $296,400.
Calculate Your Gain5.8%
29.6%
$148,200
$296,400
| Tax Component | Rate | On $500K Gain | On $1M Gain |
|---|---|---|---|
| Federal Long-Term Rate | 20.0% | $100,000 | $200,000 |
| Net Investment Income Tax (NIIT) | 3.8% | $19,000 | $38,000 |
| Nebraska State Tax | 5.8% | $29,200 | $58,400 |
| Total Tax Owed | 29.6% | $148,200 | $296,400 |
| Net Proceeds (after tax) | $351,800 | $703,600 |
Federal rate assumes income in the 20% long-term bracket. NIIT applies to investors with MAGI above $200K (single) or $250K (married). State rate shown is the top applicable rate.
| Gain Amount | NE Total Tax | Zero-Tax State | NE Premium |
|---|---|---|---|
| $250,000 | $74,100 | $59,500 | +$14,600 |
| $500,000 | $148,200 | $119,000 | +$29,200 |
| $1,000,000 | $296,400 | $238,000 | +$58,400 |
| $2,500,000 | $741,000 | $595,000 | +$146,000 |
| $5,000,000 | $1,482,000 | $1,190,000 | +$292,000 |
Nebraska taxes long-term capital gains at up to 5.8%. Combined with the 20% federal rate and 3.8% NIIT, a high-income NE investor faces 29.6% on a large capital event. On a $1M gain, that is $296,400 in total tax, leaving $703,600 after tax.
The difference between realizing a gain in Nebraska versus a zero-tax state like Texas or Florida is $58,400 per $1M in gains. For a $5M exit, the gap is $292,000. Domicile planning is a key lever for HNW investors ahead of a major liquidity event.
The NIIT adds 3.8% on top of the federal rate for investors with Modified Adjusted Gross Income above $200,000 (single) or $250,000 (married filing jointly). This threshold is not indexed to inflation, so it captures most HNW capital gain transactions regardless of state.
| Alaska | None |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| South Dakota | None |
| California | 13.3% |
| New Jersey | 10.8% |
| District of Columbia | 10.8% |
| Oregon | 9.9% |
| Minnesota | 9.8% |