Nebraska Capital Gains Tax on Real Estate

What are capital gains taxes and how are they calculated? And what are the specifics about Nebraska’s capital gains tax in 2023? When you’re selling a home, there are a lot of questions, but we’re here to help clear up some of the headaches and worry.

What Counts As Capital Gains?

Typically, capital gains are taxes on investments, and often this means that they do not apply–as much–to real estate if the seller has lived in the property as their main residence for more than two years. So, for the most part, capital gains taxes will only be levied on investment properties that the person owns. But this is not always the case. 

There is a $250,000 exemption toward the capital gains tax, or $500,000 if married filing jointly. This means that if you buy a house for $200,000 as a single person and sell it for $350,000 you won’t have to pay any capital gains, because $200,000 plus $250,000 is $450,000–more than the sale price. If, on the other hand, you sell the property for $500,000, then you will have to pay capital gains tax on the $50,000 remaining. 

How Much is Capital Gains Tax in Nebraska?

When selling your home in Nebraska, the state  treats capital gains like any other income, and therefore the money that is earned in capital gains will be between 2.46% and 6.84%, based on your total annual income. You can check your income tax bracket and income tax rate to see where you land. 

How Much is Federal Capital Gains Tax?

Federal taxes on capital gains for real estate will run between 0% up to 20% depending on your total taxable income. 

  • It will be 0% if your taxable income is less than or equal to $41,675 for single and married filing separately, and $83,350 for married filing jointly.
  • It will be 15% if your taxable income is between $41,675 and $459,750 for single and married filing separately, and between $83,350 and 517,200 for married filing jointly. 
  • It will be 20% if your taxable income is above those amounts. 

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