Live in Colorado, work in Nebraska
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Colorado: Colorado Department of Revenue (opens in new tab)
- Nebraska: Department of Revenue (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of Colorado, ordinary employee wages and all workdays physically in Nebraska. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
State income tax: $3,692 a year
Modeled annual state income tax for living in Colorado and working in Nebraska: about $3,692 on $100,000 of wages.
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Tax guide and official sources: live in Colorado, work in Nebraska
Official agency starting points: Colorado tax agency (opens in new tab) · Nebraska tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | Nebraska work state | Colorado home state |
|---|---|---|
| Tax before the modeled other-state credit | $3,670 | $3,692 |
| Modeled other-state credit subtracted | $0 | $3,670 |
| Tax after that credit | $3,670 | $21 |
Total: $3,670 + $21 = $3,692 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
The modeled credit is applied in Colorado, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To NE | To CO | Modeled 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?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. 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.