What interest rate will Nebraska apply to delinquent state taxes and special assessments during 2027 and 2028?

Plain-English summary

Nebraska set an 8% annual interest rate for delinquent state taxes and special assessments during the two-year period from January 1, 2027 through December 31, 2028.

Revenue Ruling 99-26-2 supersedes Revenue Ruling 99-24-1. The percentage remains 8%, but the new ruling establishes the rate for the next two-year period.

Nebraska law requires the Tax Commissioner to redetermine the rate every two years. Under Neb. Rev. Stat. § 45-104.02, the calculation is based on the federal government's average short-term borrowing rate during July of the previous year.

Interest is simple, not compounded under the ruling's instruction. If a delinquency spans more than one rate period, each historical rate applies to the portion of the delinquency falling within that period. The ruling lists 8% from January 1, 2025 onward, 5% for 2023-2024, 3% for 2021-2022, and earlier rates back through 1992.

The same rate schedule applies to interest paid on tax credits and refunds for periods on and after January 1, 1993. Before that date, the ruling's table distinguishes a 7% refund or credit rate from a 14% delinquency rate.

What this means for you

Taxpayers with delinquent Nebraska taxes

For any portion of a delinquency that falls in 2027 or 2028, use 8% annual simple interest. A balance spanning earlier periods must be divided across the applicable rate windows rather than calculated with one rate for the entire history.

Taxpayers owed credits or refunds

The biennial rate also governs interest the State pays on tax credits and refunds. For modern periods, the same schedule applies on both sides.

Accountants and tax professionals

Use Revenue Ruling 99-26-2 instead of the superseded 99-24-1 when documenting the 2027-2028 rate. Preserve the historical rate changes when calculating a multi-year delinquency, refund, or credit.

Common questions

What is Nebraska's state-tax interest rate for 2027 and 2028? 8% per year.

Is the interest simple or compounded? The ruling instructs taxpayers to calculate simple interest using each rate for the portion of the period when that rate is in effect.

What if the delinquency started before 2027? Apply each historical rate to its own portion of the delinquency. The new 8% period does not replace the lower or higher rates that governed earlier dates.

Does the schedule also cover tax refunds and credits? Yes. The statute and ruling address interest assessed on delinquencies and interest paid on credits or refunds.

What did this ruling supersede? Revenue Ruling 99-24-1, which set the 8% rate for 2025 and 2026.

Citations and references

• Neb. Rev. Stat. § 45-104.02 — requires the Tax Commissioner to redetermine the interest rate every two years using the federal government's average short-term borrowing rate during the prior July.
• Revenue Ruling 99-24-1 — expressly superseded by this ruling.

Source

• Landing page: Nebraska Revenue Rulings
• Original PDF: Revenue Ruling 99-26-2

Original ruling text

Revenue Ruling 99-26-2
All Nebraska Taxes

Supersedes Revenue Ruling 99-24-1

August 7, 2026

Interest Rate Assessed on State Taxes
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, 2027 through December 31, 2028, 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 August 7, 2026

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