Live in New Hampshire, Work in Nebraska: Which State Taxes Your Paycheck?
Answer
Nebraska withholds, New Hampshire does not. As a New Hampshire resident you have no home-state income tax return at all, so the Nebraska nonresident return is the whole of your state filing. Nothing offsets the Nebraska tax, because a credit has to be claimed against a home-state tax that does not exist.
Last verified
Living in a state with no income tax removes the resident return, but it does not shelter income you earn somewhere else. Nebraska taxes what is earned inside Nebraska, whoever earns it, and a nonresident return is how that gets settled.
What you file
- 1Nonresident return · NebraskaForm 1040N with Schedule III
File a Nebraska nonresident return for the wages you earned in Nebraska. New Hampshire has no wage income tax, so there is no second return and no credit to claim.
The two states, side by side
| New Hampshire | Nebraska | |
|---|---|---|
| Taxes wages | No | Yes — graduated |
| Reciprocity partners | None | None |
| Convenience rule | No | Yes — general rule |
| Nonresident return | Not applicable | Form 1040N with Schedule III |
| Credit for other-state tax | No income tax | Form 1040N Schedule II |
| Nonresident safe harbour | Not applicable | None published |
| Local income tax | No | No |
| Revenue department | New Hampshire Department of Revenue Administration | Nebraska Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Nebraska and working in New Hampshire gives:Home 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: New Hampshire → NebraskaConvenience-of-the-employer rule — employer state taxes you
- 1099 contractor: New Hampshire → NebraskaClient state only, if you work there
- Moved mid-year: New Hampshire → NebraskaOne part-year return — the state you moved to
Other New Hampshire pairs
Questions people actually ask
I live in New Hampshire and work in Nebraska. Which state takes the tax out of my paycheck?
Nebraska withholds, New Hampshire does not. As a New Hampshire resident you have no home-state income tax return at all, so the Nebraska nonresident return is the whole of your state filing. Nothing offsets the Nebraska tax, because a credit has to be claimed against a home-state tax that does not exist.
Which state should my employer be withholding for?
Nebraska. The wages are sourced to Nebraska, so Nebraska withholding is correct and there is no New Hampshire withholding to set up, because New Hampshire levies no income tax on wages.
How current is this?
The New Hampshire and Nebraska rules on this page were last checked against New Hampshire Department of Revenue Administration and Nebraska Department of Revenue 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.
- New Hampshire Department of Revenue Administration — individual income taxaccessed 2026-08-07
- Nebraska Department of Revenue — individual income taxaccessed 2026-08-07