What interest rate does Nebraska charge on delinquent state taxes and special assessments for 2025 and 2026?

Plain-English summary

This Revenue Ruling states the rate of interest Nebraska assesses on delinquent payments of state taxes and special assessments. For the two-year period January 1, 2025 through December 31, 2026, the rate is 8% per year (simple interest). That is an increase from the 5% rate that applied in 2023-2024.

The rate is not fixed by the Department at will. Under Neb. Rev. Stat. § 45-104.02, the Tax Commissioner must redetermine the rate every two years, tied to the federal government's average short-term borrowing rate during July of the previous year. Because delinquency can span several rate periods, interest is calculated by applying each period's rate to the portion of the delinquency that falls in that period. The ruling includes the full historical table back to 1992 (for example, 5% in 2019-2020, 3% in 2021-2022, 5% in 2023-2024, 8% from 2025). The same interest rates apply to interest paid on credits or refunds of tax.

What this means for you

Taxpayers who owe back taxes

If you are paying off delinquent Nebraska tax, interest accrues at 8% per year for any part of the delinquency on or after January 1, 2025. If your balance goes back further, earlier periods carry their own rates (5% in 2023-2024, 3% in 2021-2022, and so on) -- you apply each rate to the days that fall in its window, not one blended rate.

Taxpayers owed a refund

The same schedule sets the interest Nebraska pays you on a credit or refund, so the 8% figure cuts both ways.

Accountants and tax professionals

This ruling supersedes Revenue Ruling 99-22-1 and is itself reissued every two years, so always pull the current version before computing interest on a multi-year liability. The rate is statutory (§ 45-104.02), not discretionary.

Common questions

Q: What is Nebraska's interest rate on delinquent state taxes right now?
A: 8% per year for the period January 1, 2025 through December 31, 2026.

Q: How is interest calculated if my debt spans several years?
A: As simple interest, applying each period's rate to the portion of the delinquency that falls within that period. For example, 3% applied to 2021-2022, 5% to 2023-2024, and 8% from 2025 onward.

Q: Does the same rate apply to refunds Nebraska owes me?
A: Yes. The ruling states the same interest rates apply to interest on credits or refunds of taxes.

Q: Can I rely on this Revenue Ruling?
A: A Nebraska Revenue Ruling is a general guidance document that is "advisory in nature but is binding on the Nebraska Department of Revenue until amended," and it applies generally rather than to a single taxpayer. But it can be superseded or made obsolete by a later ruling or a change in statute or regulation, so confirm you are looking at the current version before relying on it.

Citations and references

Statutes:

• Neb. Rev. Stat. § 45-104.02 (biennial redetermination of the interest rate on delinquent state taxes and special assessments, tied to the federal short-term borrowing rate)

Supersedes: Revenue Ruling 99-22-1.

Source

• Landing page: Nebraska Revenue Rulings
• Original PDF: 99-24-1

Original ruling text

Revenue Ruling 99-24-1
All Nebraska Taxes

Supersedes Revenue Ruling 99-22-1

Interest Rate Assessed on State Taxes

July 23, 2024

This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue
(DOR) until amended. A guidance document does not include internal procedural documents that
only affect the internal operations of the DOR and does not impose additional requirements or
penalties on regulated parties or include confidential information or rules and regulations made
in accordance with the Administrative Procedure Act. If you believe that this guidance document
imposes additional requirements or penalties on regulated parties, you may request a review of the
document.
This guidance document may change with updated information or added examples. The DOR
recommends you do not print this document. Instead, sign up for the subscription service at revenue.
nebraska.gov to get updates on your topics of interest.

Issue
What rate of interest will be assessed on delinquent payments of taxes owed to the State of Nebraska?

Conclusion
For the two-year period beginning January 1, 2025 through December 31, 2026, the rate of interest on
payments of any delinquent taxes or special assessments owed to the State of Nebraska will be 8% per
year.

Analysis
Pursuant to Neb. Rev. Stat. § 45-104.02, the Tax Commissioner is required to redetermine the interest rate
assessed on delinquent payments of any taxes or special assessments owed to the State of Nebraska, or
paid on credits or refunds of taxes, every two years based upon the average short-term borrowing rate for
the federal government during July of the previous year.
Simple interest on taxes and special assessments should be calculated by using each rate set out below for
the portion of the period of the delinquency that the rate is in effect.
Period
Interest Rate
1-1-2025 and after
8%
1-1-2023 through 12-31-2024
5%
1-1-2021 through 12-31-2022
3%
1-1-2019 through 12-31-2020
5%
1-1-2013 through 12-31-2018
3%
1-1-2009 through 12-31-2012
5%
1-1-2007 through 12-31-2008
8%
1-1-2003 through 12-31-2006
6%
1-1-1995 through 12-31-2002
9%
1-1-1993 through 12-31-1994
7%
Through 12-31-1992
14%
On or before December 31, 1992, interest on any credit or refund of taxes or special assessments is
calculated at a rate of 7%, and interest on delinquent payments is calculated at a rate of 14%. On and after
January 1, 1993, the same interest rates apply to any credit or refund of taxes, delinquent payment, or
special assessment.
APPROVED:
James R. Kamm
Tax Commissioner
July 23, 2024

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818