LINCOLN, Neb. (AP) — Nebraskans receiving Social Security income will pay less in taxes on that income each year until it’s fully exempt in 2030, under a bill that won final approval from lawmakers.
Lawmakers passed the gradual tax phase-out on a 41-0 vote. It now heads to Gov. Pete Ricketts, who’s expected to sign it.
The bill by Sen. Brett Lindstrom, of Omaha, would reduce the taxes paid on Social Security income by 5% this year, 20% next year and 30% in 2023. The exemption would continue to grow until it hits 100% in 2030.
Supporters say the bill would help ease the tax burden on seniors and make Nebraska attractive compared to neighboring states that don’t tax Social Security, including Iowa.