Side-by-side tax comparison between Nebraska (4.55% top rate, graduated) and North Dakota (2.5% top rate, graduated). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Nebraska uses a graduated income tax (2.46-4.55%) while North Dakota has a graduated system (0-1.95-2.5%). On a $100K salary, Nebraska takes $2,958 in state and local taxes compared to North Dakota’s $1,625 \u2014 a difference of $1,333.
Both states use graduated brackets, but Nebraska’s top rate of 4.55% is higher than North Dakota’s 2.5%.
North Dakota wins at 10 out of 10 salary levels tested. The advantage exists but is modest across the income spectrum.
| Salary | Nebraska | North Dakota | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,137 | $33,670 | +$533 | North Dakota |
| $50K | $40,876 | $41,543 | +$666 | North Dakota |
| $60K | $48,616 | $49,415 | +$800 | North Dakota |
| $75K | $59,319 | $60,319 | +$999 | North Dakota |
| $100K | $76,168 | $77,500 | +$1,333 | North Dakota |
| $120K | $89,646 | $91,245 | +$1,599 | North Dakota |
| $150K | $109,315 | $111,314 | +$1,999 | North Dakota |
| $200K | $142,972 | $145,637 | +$2,665 | North Dakota |
| $250K | $175,870 | $179,202 | +$3,331 | North Dakota |
| $300K | $206,456 | $210,454 | +$3,998 | North Dakota |
Take-home pay only tells part of the story. Nebraska has a cost of living index of 91 while North Dakota is at 92 (national average = 100).
With similar costs of living (91 vs 92), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $83,701 in Nebraska vs $84,239 in North Dakota.
For a single earner at $100K filing jointly, take-home becomes $81,753 in Nebraska and $83,085 in North Dakota \u2014 a difference of $1,333. The gap remains similar regardless of filing status.
On paper, moving from Nebraska to North Dakota would save $1,333/year on a $100K salary, or $6,663 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
At $1,333/year, the tax difference alone likely isn’t worth relocating for. Other factors — job market, lifestyle, family — should drive the decision. The tax savings are a nice bonus if you’re already considering the move for other reasons.