Live in Nebraska, work in Colorado
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.
- Nebraska: Department of Revenue (opens in new tab)
- Colorado: Colorado 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 Nebraska, ordinary employee wages and all workdays physically in Colorado. 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 Nebraska and working in Colorado: about $3,692 on $100,000 of wages, $21 more than if you worked 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.
Tax guide and official sources: live in Nebraska, work in Colorado
Official agency starting points: Nebraska tax agency (opens in new tab) · Colorado 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 | Colorado work state | Nebraska home state |
|---|---|---|
| Tax before the modeled other-state credit | $3,692 | $3,670 |
| Modeled other-state credit subtracted | $0 | $3,670 |
| Tax after that credit | $3,692 | $0 |
Total: $3,692 + $0 = $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 Nebraska, 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 CO | To NE | Modeled 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?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. 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.