Live in South Dakota, work in Nebraska
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
State income tax: $3,670 a year
Living in South Dakota and working in Nebraska, you'd pay about $3,670 in state income tax on $100,000 of wages, $3,670 more than if you worked in South Dakota.
Your home state has no income tax, so there is no credit to offset the work state's tax. You pay the work state as a nonresident.
State tax at different salaries
| Wages | To NE | To SD | Total | If you worked in SD |
|---|---|---|---|---|
| $50,000 | $1,395 | $0 | $1,395 | $0 |
| $75,000 | $2,533 | $0 | $2,533 | $0 |
| $100,000 | $3,670 | $0 | $3,670 | $0 |
| $150,000 | $5,945 | $0 | $5,945 | $0 |
| $250,000 | $10,495 | $0 | $10,495 | $0 |
Single filer, all wages earned in Nebraska, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- File a Nebraska nonresident return. There's no South Dakota return for wages because South Dakota has no income tax.
- 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 South Dakota?
Yes. Nebraska taxes wages earned there by nonresidents. On $100,000 that's about $3,670.
Do I have to file taxes in both South Dakota and Nebraska?
Usually you file only one state return (a nonresident return in Nebraska), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. South Dakota has no income tax, so you pay only Nebraska's nonresident tax: about $3,670 on $100,000.
Related
- Live in Nebraska, work in South Dakota
- Moving from South Dakota to Nebraska
- Moving from Nebraska to South Dakota
- Live in South Dakota, work in Iowa
- Live in South Dakota, work in Minnesota
- Live in South Dakota, work in Montana
- Live in South Dakota, work in North Dakota
- Live in South Dakota, 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.