Live in Nebraska, work in Colorado
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 Nebraska and working in Colorado, you'd pay about $3,692 in state income tax on $100,000 of wages, $21 more than if you worked 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 tax at different salaries
| Wages | To CO | To NE | Total | If you worked in NE |
|---|---|---|---|---|
| $50,000 | $1,492 | $0 | $1,492 | $1,395 |
| $75,000 | $2,592 | $0 | $2,592 | $2,533 |
| $100,000 | $3,692 | $0 | $3,692 | $3,670 |
| $150,000 | $5,892 | $54 | $5,945 | $5,945 |
| $250,000 | $10,292 | $204 | $10,495 | $10,495 |
Single filer, all wages earned in Colorado, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Colorado tax. If Nebraska's tax is higher, withhold the difference for Nebraska too (or make estimated payments) to avoid an underpayment penalty.
- File the Colorado nonresident return first, then claim the credit for taxes paid to another state on your Nebraska resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Frequently asked questions
Do I pay Colorado income tax if I live in Nebraska?
Yes. Colorado taxes wages earned there by nonresidents. On $100,000 that's about $3,692.
Do I have to file taxes in both Nebraska and Colorado?
Usually yes: a nonresident return in Colorado and a resident return in Nebraska, where you claim a credit for the tax paid to Colorado. File the Colorado return first.
Will I be taxed twice?
Not on the same state-level wages. Nebraska credits the tax you pay Colorado, so your total is about $3,692 on $100,000, compared with $3,670 if you also worked in Nebraska. Local city or county taxes may still apply.
Related
- Live in Colorado, work in Nebraska
- Moving from Nebraska to Colorado
- Moving from Colorado to Nebraska
- Live in Nebraska, work in Iowa
- Live in Nebraska, work in Kansas
- Live in Nebraska, work in Missouri
- Live in Nebraska, work in South Dakota
- Live in Nebraska, 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.