Mortgage Interest Deduction in Nebraska
State income tax rate
4.55%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
Nebraska reduced its top rate to 4.55% in 2026 as part of a multi-year reduction plan toward 3.99%. Nebraska conforms to federal itemized deductions — mortgage interest deduction carries over to state returns.
Combined Federal + Nebraska Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- Nebraska (4.55% rate): $819
- Total estimated savings: $4,779
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.