Live in Nebraska, Work in Texas: Which State Taxes Your Paycheck?
Answer
Nebraska taxes the income and Texas cannot. Residency, not the location of the job, drives this answer: Nebraska reaches all of a resident's income, and Texas has no personal income tax to apply to the part earned inside its borders.
Last verified
The instinct that working in a no-tax state means paying no tax is the single most expensive misunderstanding in this niche. Texas takes nothing, but Nebraska still taxes residents on income earned anywhere, so the full amount lands on your Nebraska return.
What you file
- 1Resident return · Nebraska
File a Nebraska resident return reporting all of your income.
The two states, side by side
| Nebraska | Texas | |
|---|---|---|
| Taxes wages | Yes — graduated | No |
| Reciprocity partners | None | None |
| Convenience rule | Yes — general rule | No |
| Nonresident return | Form 1040N with Schedule III | Not applicable |
| Credit for other-state tax | Form 1040N Schedule II | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | No | No |
| Revenue department | Nebraska Department of Revenue | Texas Comptroller of Public Accounts |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Texas and working in Nebraska gives:Work state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Nebraska → TexasHome state only
- 1099 contractor: Nebraska → TexasHome state only — estimated payments
- Moved mid-year: Nebraska → TexasOne part-year return — the state you left
Other Nebraska pairs
Questions people actually ask
I live in Nebraska and work in Texas. Which state takes the tax out of my paycheck?
Nebraska taxes the income and Texas cannot. Residency, not the location of the job, drives this answer: Nebraska reaches all of a resident's income, and Texas has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
Nebraska. Your employer should withhold Nebraska tax rather than Texas tax on these wages. If a Texas line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Nebraska and Texas rules on this page were last checked against Nebraska Department of Revenue and Texas Comptroller of Public Accounts on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Nebraska Department of Revenue — individual income taxaccessed 2026-08-07
- Texas Comptroller of Public Accounts — individual income taxaccessed 2026-08-07