Live in Texas, Work in Nebraska: Which State Taxes Your Paycheck?
Answer
One return, filed in Nebraska. Your employer withholds Nebraska tax on the wages you earn there and you settle up on a Nebraska nonresident return. Texas does not tax wages, so this pair produces a single state filing rather than two.
Last verified
This is the mirror image of the more common commute. There is no home-state return to file, so the Nebraska nonresident return carries the whole obligation — and because Texas charges nothing, there is no credit mechanism involved anywhere.
What you file
- 1Nonresident return · NebraskaForm 1040N with Schedule III
File a Nebraska nonresident return for the wages you earned in Nebraska. Texas has no wage income tax, so there is no second return and no credit to claim.
The two states, side by side
| Texas | 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 | Texas Comptroller of Public Accounts | Nebraska Department of Revenue |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Nebraska and working in Texas 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: Texas → NebraskaConvenience-of-the-employer rule — employer state taxes you
- 1099 contractor: Texas → NebraskaClient state only, if you work there
- Moved mid-year: Texas → NebraskaOne part-year return — the state you moved to
Other Texas pairs
Questions people actually ask
I live in Texas and work in Nebraska. Which state takes the tax out of my paycheck?
One return, filed in Nebraska. Your employer withholds Nebraska tax on the wages you earn there and you settle up on a Nebraska nonresident return. Texas does not tax wages, so this pair produces a single state filing rather than two.
Which state should my employer be withholding for?
Nebraska. The wages are sourced to Nebraska, so Nebraska withholding is correct and there is no Texas withholding to set up, because Texas levies no income tax on wages.
How current is this?
The Texas and Nebraska rules on this page were last checked against Texas Comptroller of Public Accounts 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.
- Texas Comptroller of Public Accounts — individual income taxaccessed 2026-08-07
- Nebraska Department of Revenue — individual income taxaccessed 2026-08-07