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Legislature Votes To Gradually Abolish Social Security Tax

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.