A falling income tax, no city income tax at all, and the property bill that pays for it

Step-by-step

1. 1

   Complete the federal W-4 and the Nebraska withholding form on day one

   Nebraska has its own withholding certificate separate from the federal W-4. There is no municipal form because there is no municipal income tax — a genuinely simpler payslip than Cincinnati's or Kansas City's.

   Via employerWho: YouFirst week of employment
2. 2

   If you work in Iowa, or live there, set up for two state returns

   Nebraska and Iowa have no reciprocal agreement. You file a resident return where you live and a non-resident return where you earn, and claim a credit for tax paid to the other state so the same income is not taxed twice. It is routine and it is two returns. Tell payroll which state you live in before your first payslip rather than fixing it in April.

   Via employerWho: You
3. 3

   Determine your US tax residency

   The substantial presence test counts weighted days across three years to decide whether the US taxes your worldwide income or only US-source income. Your visa category does not decide this.

   OnlineWho: You
4. 4

   Check for an applicable tax treaty

   The US has treaties with around 70 countries that can reduce or exempt tax on particular income. Nebraska's return starts from federal adjusted gross income, so a federal treaty position generally flows through to the state return — but confirm rather than assuming, particularly if you have a part-year or dual-state situation.

   OnlineWho: You
5. 5

   If you buy, read the property tax statement rather than the levy rate

   Nebraska assesses residential property at essentially full market value, and the levy is the sum of every district that overlaps the parcel. Since LB 34, the school district property tax credit is applied on the statement itself rather than claimed on your income tax return, so the headline levy overstates what you actually pay. Read the statement line by line; do not reason from a percentage in an article.

   OnlineWho: You
6. 6

   Check the homestead exemption if it might apply

   Nebraska's homestead exemption relieves part of the property tax for qualifying older people, people with disabilities and certain veterans, subject to household income limits published annually. It is applied for through the county assessor on a fixed calendar, not granted automatically.

   OnlineWho: You
7. 7

   Budget the sales tax and the occupation taxes separately

   Nebraska's state sales tax is 5.5% and cities may add a local rate, so an Omaha till receipt runs meaningfully above the state figure. Omaha also levies occupation taxes on certain businesses — restaurants and bars, hotels, car hire and telecommunications among them — and the Department of Revenue's own worked example shows a 2.5% restaurant occupation tax added to the bill before sales tax is calculated on the larger total. Eating out here costs a little more than the sales tax rate implies.

   OnlineWho: You
8. 8

   File federal and Nebraska returns by 15 April

   The tax year is the calendar year. Nebraska's return starts from federal figures and is straightforward. Add an Iowa return if you crossed the river for work.

   OnlineWho: YouBy 15 April annually
9. 9

   File an FBAR if foreign accounts exceed $10,000

   Aggregate foreign account balances over $10,000 at any point in the year trigger a FinCEN filing, separate from your tax return and with its own penalties.

   OnlineWho: You