Nebraska § 77-2715.02 - Rate schedules; established; other taxes; tax rate.

§ 77-2715.02. Rate schedules; established; other taxes; tax rate.

(1) The following rate schedules are hereby established for the Nebraska individual income tax and shall be in the following form:

(a) For taxable years beginning or deemed to begin before January 1, 2007, income amounts for columns A and E shall be:

(i) $0, $2,400, $17,500, and $27,000, for single returns;

(ii) $0, $4,000, $31,000, and $50,000, for married filing joint returns;

(iii) $0, $3,800, $25,000, and $35,000, for head-of-household returns;

(iv) $0, $2,000, $15,500, and $25,000, for married filing separate returns; and

(v) $0, $500, $4,700, and $15,150, for estates and trusts;

(b) For taxable years beginning or deemed to begin on or after January 1, 2007, and before January 1, 2013, income amounts for columns A and E shall be:

(i) $0, $2,400, $17,500, and $27,000, for single returns;

(ii) $0, $4,800, $35,000, and $54,000, for married filing joint returns;

(iii) $0, $4,500, $28,000, and $40,000, for head-of-household returns;

(iv) $0, $2,400, $17,500, and $27,000, for married filing separate returns; and

(v) $0, $500, $4,700, and $15,150, for estates and trusts;

(c) The amount in column C shall be the total amount of the tax imposed on income less than the amount in column A;

(d) The amount in column D shall be the rate on the income in excess of the amount in column E;

(e) For taxable years beginning or deemed to begin before January 1, 2003, under the Internal Revenue Code of 1986, as amended, the primary rate set by the Legislature shall be multiplied by the following factors to compute the tax rates for column D. The factors for the brackets, from lowest to highest bracket, shall be .6784, .9432, 1.3541, and 1.8054;

(f) For taxable years beginning or deemed to begin on or after January 1, 2003, and before January 1, 2013, under the Internal Revenue Code of 1986, as amended, the primary rate set by the Legislature shall be multiplied by the following factors to compute the tax rates for column D. The factors for the brackets, from lowest to highest bracket, shall be .6932, .9646, 1.3846, and 1.848;

(g) The amounts for column C shall be rounded to the nearest dollar, and the amounts in column D shall be rounded to hundredths of one percent; and

(h) One rate schedule shall be established for each federal filing status.

(2) The tax rate schedules shall use the format set forth in this subsection.

(3) For taxable years beginning or deemed to begin before January 1, 2013, the tax rate applied to other federal taxes included in the computation of the Nebraska individual income tax shall be eight times the primary rate.

This section and section 77-2717, when read together, require the Nebraska Department of Revenue to tax trusts and estates in conformity with the federal tax code. FirsTier Bank v. Department of Revenue, 254 Neb. 918, 580 N.W.2d 537 (1998).