Nebraska tipped wage calculator: $15.00 minimum, $2.13 cash

Nebraska raised its minimum to $15.00 in 2026 but left the tipped cash wage at $2.13, so its $12.87 tip credit is one of the widest anywhere — and tips stay taxable on the Nebraska return.

Your Nebraska tips

State where you work Qualified tips this year

Voluntary cash and card tips on your W-2, 1099 or Form 4137 — not service charges.

Tax year

2025202620272028

Filing status Other income in your AGI

Wages without the tips, plus any other income (both spouses if filing jointly).

Your occupation The 71 Treasury Tipped Occupation Codes in the final rule (TD 10044).

How you are paid

Employee (W-2) Self-employed (1099)

More options

Itemized deductions (if larger than the standard deduction)

State marginal rate override (%) Leave blank to use the state’s published rate for your bracket.

Federal income tax saved in 2026Deduction $18,000 at 12% $2,160

$18,000 of the $25,000 cap used (72%)

Qualified tips	$18,000
After the $25,000 cap	$18,000
Income phase-out (MAGI $48,000)	$0
Tips deduction	$18,000
Federal tax before → after	$3,580 → $1,420
Social Security & Medicare still due on tips	$1,377
Nebraska 2026: Tips stay taxable in this state	$0
Total income tax saved	$2,160

What the estimate leaves out

Why the deduction misses Nebraska

The Department of Revenue’s September 2025 report on the federal law explains that the tips, overtime and car-loan deductions are taken after federal AGI is computed and “will have no automatic impact” on Nebraska, whose return starts from AGI. No Nebraska tips adjustment had been enacted when we checked.

Nebraska figures

Cash wage / minimum	$2.13 / $15.00
In force	July 1, 2026 – December 31, 2026
Next change	after December 31, 2026 — not yet published
Tipped threshold	Not specified
Tips on the 2025 return	tips stay taxable in this state. The Department: the tips deduction is taken after federal AGI “and therefore … will have no automatic impact on Nebraska.” Source: Nebraska Department of Revenue
Tips on the 2026 return	tips stay taxable in this state. No Nebraska tips adjustment had been enacted when we checked. Source: Nebraska Department of Revenue

Living with a $12.87 credit

When most of the hourly minimum comes from tips, the weekly make-up rule carries real money: an employer paying $2.13 must cover any gap between cash plus tips and $15.00 for every hour. The 2027 Nebraska minimum had not been published when we verified.

An Omaha server on a slow week

Federal savings on a $16,000 deduction: $1,770. Nebraska taxes the tips. In 30 hours the employer pays $64 in cash; even with $200 of tips the worker is $186 short of $450, which the employer owes.

Check a Nebraska workweek

Employer make-up owed$2.13 cash wage + tips must reach $15.00 an hour. $262

Minimum for the hours	$480
Cash wage paid	$68
Tips counted toward the minimum	$150
Your effective hourly pay	$15.00

How the make-up rule works

Where these figures come from

Nebraska Department of Revenue · Nebraska Department of Labor
Effects of the One Big Beautiful Bill Act on the State of Nebraska (2025-09-02)
Minimum Wages for Tipped Employees (table by state) (2026-07-01)

Federal rules: how the deduction works. Nearby: South Dakota, Iowa, Missouri, Kansas, Colorado, Wyoming.

Figures verified against primary sources on October 5, 2026