Live in Nebraska, work in Iowa
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: $3,670 a year
Living in Nebraska and working in Iowa, you'd pay about $3,670 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 IA | To NE | Total | If you worked in NE |
|---|---|---|---|---|
| $50,000 | $1,248 | $147 | $1,395 | $1,395 |
| $75,000 | $2,198 | $335 | $2,533 | $2,533 |
| $100,000 | $3,148 | $522 | $3,670 | $3,670 |
| $150,000 | $5,048 | $897 | $5,945 | $5,945 |
| $250,000 | $8,848 | $1,647 | $10,495 | $10,495 |
Single filer, all wages earned in Iowa, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Iowa tax. If Nebraska's tax is higher, withhold the difference for Nebraska too (or make estimated payments) to avoid an underpayment penalty.
- File the Iowa 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.
Local income taxes
- Iowa: School district income surtax on residents only (percentage of state tax); does not affect nonresident commuters.
Frequently asked questions
Do I pay Iowa income tax if I live in Nebraska?
Yes. Iowa taxes wages earned there by nonresidents. On $100,000 that's about $3,148.
Do I have to file taxes in both Nebraska and Iowa?
Usually yes: a nonresident return in Iowa and a resident return in Nebraska, where you claim a credit for the tax paid to Iowa. File the Iowa return first.
Will I be taxed twice?
Not on the same state-level wages. Nebraska credits the tax you pay Iowa, so your total is about $3,670 on $100,000, compared with $3,670 if you also worked in Nebraska. Local city or county taxes may still apply.
Related
- Live in Iowa, work in Nebraska
- Moving from Nebraska to Iowa
- Moving from Iowa to Nebraska
- Live in Nebraska, work in Colorado
- 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.