Nebraska Guide for Canadians

Quick Facts

State Income Tax	2.46% to 5.84% (decreasing to 3.99% by 2027)
Sales Tax	5.5% state + local (average 6.94%)
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	183 days or domicile in Nebraska
Vehicle Registration Deadline	30 days after establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Not available

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Nebraska mailing address

Week 3-4: Official Registration

• Apply for Nebraska driver's license (within 30 days)
• Complete vision test (written/drive test at discretion if valid out-of-state license)
• Begin vehicle registration process (within 30 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Complete vehicle registration and titling
• Establish Nebraska ties and connections
• Research healthcare options and insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Proof of U.S. citizenship or lawful status (Canadian passport for lawful status)
• Social Security Number or proof of exemption (I-94 in valid foreign passport)
• Two proofs of Nebraska principal address
• Valid out-of-state license (if applicable)

Testing Requirements:

• Vision test required for all new residents
• Written and drive tests at discretion if surrendering valid out-of-state license
• Written and drive tests required if unable to surrender out-of-state license
• Drive test may be waived for expired license less than one year old

REAL ID Option:

• Gold star indicator available for qualifying non-citizens
• Required for domestic air travel after May 7, 2025
• Enhanced Driver's License not available in Nebraska
• Passport required for international travel

Important Notes:

• 30-day limit to get Nebraska license after establishing residency
• Must surrender out-of-state license upon Nebraska license issuance
• License obtained before 21st birthday expires on 21st birthday
• Under 18 must meet Provisional Operator's Permit requirements

Vehicle Registration

• Register within 30 days of establishing residency
• Must obtain title before registration
• Registration fees based on vehicle value and weight
• Nebraska insurance required for registration
• Annual registration renewal required

Tax & Residency Considerations

Nebraska State Tax Structure

• **Income tax rates** 2.46% to 5.84% (decreasing annually to 3.99% by 2027)
• **No tax on retirement income** including Social Security (100% exempt by 2025)
• **Property taxes** vary by county (average effective rate around 1.6%)
• **Sales tax** 5.5% state + local (average 6.94%)
• **No inheritance tax** (eliminated in 2023)

Establishing Nebraska Tax Residency

Nebraska residency is based on domicile or physical presence:

• Domiciled in Nebraska (intent to make permanent home)
• Present in Nebraska for 183+ days with permanent place of abode
• Any part of a day counts as a full day for the 183-day test
• Nebraska driver's license and voter registration help establish domicile

Documentation to Establish Residency

• Nebraska driver's license and voter registration
• Bank accounts and utility bills in Nebraska
• Employment or business activities in Nebraska
• Property ownership or long-term lease agreements
• Professional licenses and club memberships

Tax Reform Benefits

Nebraska has significantly reformed its tax structure, reducing income tax rates annually through 2027 and eliminating taxes on retirement income. This makes it increasingly attractive for retirees and those seeking lower tax burdens.

Accidental Residency Risk

Nebraska's 183-day rule can create accidental tax residency. Monitor your days carefully to avoid unexpected tax obligations, especially if you maintain domicile in another state.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Nebraska expanded Medicaid in 2020 (limited eligibility for non-citizens)
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Omaha, Lincoln, and Grand Island

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Nebraska's 183-day rule requires careful day counting

Property Considerations

• Affordable property values, especially outside major cities
• Property tax rates vary significantly by county
• Various local tax exemptions available
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Continental climate with hot summers, cold winters
• Tornado season (spring/early summer) requires awareness
• Lower cost of living compared to coastal states
• Growing economy with agriculture, finance, and technology sectors

Border Proximity Considerations

• No direct border with Canada - nearest crossing in North Dakota
• Enhanced Driver's License not available in Nebraska
• NEXUS/Global Entry beneficial for border crossings
• Consider travel distance to Canadian services

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Nebraska
• I-94 registration now required for 30+ day stays

Growing Canadian Community

Nebraska has seen increasing interest from Canadian snowbirds, particularly in areas around Omaha and Lincoln. The state offers good amenities, friendly communities, and improving tax advantages.

Key Contacts & Resources