Side-by-side tax comparison between Minnesota (9.85% top rate, graduated) and Nebraska (4.55% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Minnesota uses a graduated income tax (5.35-9.85%) while Nebraska has a graduated system (2.46-4.55%). On a $100K salary, Minnesota takes $6,402 in state and local taxes compared to Nebraska’s $2,958 \u2014 a difference of $3,445.
Both states use graduated brackets, but Minnesota’s top rate of 9.85% is higher than Nebraska’s 4.55%.
Nebraska wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Minnesota | Nebraska | Difference | Winner |
|---|---|---|---|---|
| $40K | $31,759 | $33,137 | +$1,378 | Nebraska |
| $50K | $39,154 | $40,876 | +$1,723 | Nebraska |
| $60K | $46,549 | $48,616 | +$2,067 | Nebraska |
| $75K | $56,736 | $59,319 | +$2,584 | Nebraska |
| $100K | $72,723 | $76,168 | +$3,445 | Nebraska |
| $120K | $85,512 | $89,646 | +$4,134 | Nebraska |
| $150K | $104,147 | $109,315 | +$5,168 | Nebraska |
| $200K | $136,082 | $142,972 | +$6,890 | Nebraska |
| $250K | $167,258 | $175,870 | +$8,613 | Nebraska |
| $300K | $196,121 | $206,456 | +$10,335 | Nebraska |
Take-home pay only tells part of the story. Minnesota has a cost of living index of 99 while Nebraska is at 91 (national average = 100).
The cost of living gap is moderate. After adjustment, $100K has purchasing power of $73,457 in Minnesota vs $83,701 in Nebraska. The take-home winner also wins on purchasing power.
For a single earner at $100K filing jointly, take-home becomes $78,308 in Minnesota and $81,753 in Nebraska \u2014 a difference of $3,445. The gap remains similar regardless of filing status.
On paper, moving from Minnesota to Nebraska would save $3,445/year on a $100K salary, or $17,225 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $3,445/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.