2026 · Iowa → Nebraska
Living in Iowa, working for a Nebraska employer
Nebraska can treat your wages as Nebraska-source even though you work from Iowa, because the remote work is for your convenience, not the employer's. Nebraska applies a convenience rule, but 2024 legislation limits it to nonresidents physically present in Nebraska for MORE than 7 days in the year. A fully remote worker who never travels to NE is not caught. That risks tax in both states.
Nebraska applies a convenience rule, but a 2024 change limits it: it only bites if you're physically present in Nebraska for more than seven days in the year. An Iowa resident working fully remotely for a Nebraska employer who never travels there generally escapes the rule. But cross the seven-day line and your remote days can be taxed as Nebraska-source. Count your Nebraska days.
You live in Iowa, which has a flat 3.8% income tax. And your employer is in Nebraska, which has a graduated income tax up to 4.5%. That combination decides who taxes your wages, and whether a credit keeps you from paying twice. Here's the rule for this specific pair.
The rule for Iowa → Nebraska
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Nebraska convenience rule may tax you
Nebraska can treat your wages as Nebraska-source even though you work from Iowa, because the remote work is for your convenience, not the employer's. Nebraska applies a convenience rule, but 2024 legislation limits it to nonresidents physically present in Nebraska for MORE than 7 days in the year. A fully remote worker who never travels to NE is not caught. That risks tax in both states.
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Claim the credit for taxes paid
Iowa should give you a credit for taxes paid to Nebraska, which usually prevents true double taxation. But you file in both states. Confirm the mechanics.
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Confirm the rule
This tool does not attempt to fully model the 'convenience of the employer' rule beyond New York and a small group of clearly identified states. For other jurisdictions, always confirm nonresident wage sourcing directly with the state Department of Revenue or a qualified professional.
What each state would take on $100,000
| Nebraska tax (work state) | $4,249 |
| Iowa tax (home state) | $3,800 |
| Double-taxation risk | Yes, confirm the credit |
A credit in Iowa for tax paid to Nebraska is what prevents the same wages being fully taxed twice, confirm the mechanics on both returns.
Check your own situation
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Questions
Do I pay Iowa or Nebraska tax if I work remotely?
Nebraska can treat your wages as Nebraska-source even though you work from Iowa, because the remote work is for your convenience, not the employer's. Nebraska applies a convenience rule, but 2024 legislation limits it to nonresidents physically present in Nebraska for MORE than 7 days in the year. A fully remote worker who never travels to NE is not caught. That risks tax in both states. Iowa should give you a credit for taxes paid to Nebraska, which usually prevents true double taxation. But you file in both states. Confirm the mechanics. This tool does not attempt to fully model the 'convenience of the employer' rule beyond New York and a small group of clearly identified states. For other jurisdictions, always confirm nonresident wage sourcing directly with the state Department of Revenue or a qualified professional.
Will I be taxed twice living in Iowa and working for a Nebraska employer?
There's a real risk: Nebraska's convenience rule can tax your wages as Nebraska-source, and Iowa taxes you as a resident. A credit for taxes paid usually prevents true double taxation, but you file in both states. Keep evidence if your employer requires the remote work, that exception can remove the Nebraska tax.
Related
This maps the rules; it does not file them. Cross-border filing needs a professional. Convenience-rule specifics vary, confirm with the state Department of Revenue. Nothing stored. Not tax or legal advice.