Live in Colorado, work in Nebraska
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State income tax: $3,692 a year
Living in Colorado and working in Nebraska, you'd pay about $3,692 in state income tax on $100,000 of wages.
No reciprocity: you file a nonresident return in the work state and pay its tax. Your home state gives a credit for that tax, so you pay the home state only if its tax is higher.
State tax at different salaries
| Wages | To NE | To CO | Total | If you worked in CO |
|---|---|---|---|---|
| $50,000 | $1,395 | $96 | $1,492 | $1,492 |
| $75,000 | $2,533 | $59 | $2,592 | $2,592 |
| $100,000 | $3,670 | $21 | $3,692 | $3,692 |
| $150,000 | $5,945 | $0 | $5,945 | $5,892 |
| $250,000 | $10,495 | $0 | $10,495 | $10,292 |
Single filer, all wages earned in Nebraska, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Nebraska tax. If Colorado's tax is higher, withhold the difference for Colorado too (or make estimated payments) to avoid an underpayment penalty.
- File the Nebraska nonresident return first, then claim the credit for taxes paid to another state on your Colorado resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Working from home for a Nebraska employer
Nebraska has a "convenience of the employer" rule. Narrowed from 2025 by LB 1023: wages a nonresident earns working remotely for a NE employer for their own convenience are taxed by NE only if they also work in Nebraska on more than seven days in the year. Remote work the employer requires is not taxed. Employers withhold Nebraska tax only on days worked in Nebraska, so any remaining Nebraska tax is settled on the nonresident return.
Frequently asked questions
Do I pay Nebraska income tax if I live in Colorado?
Yes. Nebraska taxes wages earned there by nonresidents. On $100,000 that's about $3,670.
Do I have to file taxes in both Colorado and Nebraska?
Usually yes: a nonresident return in Nebraska and a resident return in Colorado, where you claim a credit for the tax paid to Nebraska. File the Nebraska return first.
Will I be taxed twice?
Not on the same state-level wages. Colorado credits the tax you pay Nebraska, so your total is about $3,692 on $100,000, compared with $3,692 if you also worked in Colorado. Local city or county taxes may still apply.
Related
- Live in Nebraska, work in Colorado
- Moving from Colorado to Nebraska
- Moving from Nebraska to Colorado
- Live in Colorado, work in Kansas
- Live in Colorado, work in New Mexico
- Live in Colorado, work in Oklahoma
- Live in Colorado, work in Utah
- Live in Colorado, work in Wyoming
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.