What’s the cost of living in Nebraska?
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If Nebraska is on your radar, here are some current statistics related to the cost of living in the state that could help you make up your mind.
The average cost of living in Nebraska
Nebraska is home to over 1.9 million people.
According to research, the cost of living in Nebraska is 8% lower than the national average.
While, according to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 13th in a list of states with the lowest to the highest cost of living.
Housing costs in Nebraska
As of March 2023, the average home value in Nebraska is estimated to be around $243,012, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state.
Typical Home Prices in Nebraska (Zillow Data):
Kearney: $277,479
Omaha: $272,918
Bellevue: $271,250
Lincoln: $269,785
Grand Island: $224,531
The monthly rental price ranges across the state for those considering renting in Michigan. For example, the average rent for an apartment in Omaha is $1,145.
Utility costs in Nebraska
Utility costs play a significant role in Nebraska's overall cost of living. According to Forbes, the average monthly cost is around $379.
Average Monthly Utility Costs in Nebraska:
Phone bill: $114
Energy bill: $108.09
Natural gas: $68
Streaming: $46.25
Monthly water bill: $23
Internet: $20
Grocery and food costs in Nebraska
When it comes to groceries and food costs, Nebraska generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Omaha pay over $336 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
Transportation costs in Nebraska
Transportation costs, including gas prices and vehicle maintenance, impact Nebraska's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,300.
Gas prices in Nebraska are typically in and around the national average. At the time of writing, Nebraska was lower than the national average. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Nebraska
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Nebraska can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
Annual Health Expenditure in Nebraska Estimated by MIT:
One adult, no children: $3,479
One adult, one child: $10,137
One adult, two children: $10,147
Two adults (one working), no children: $7,749
Two adults (one working), one child: $10,147
Two adults (one working), two children: $10,072
Two adults (two working), no children: $7,749
Two adults (two working), one child: $10,147
Two adults (two working), two children: $10,072
Childcare costs in Nebraska
Families in Nebraska currently pay around $8,554 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Nebraska
Nebraska’s state income tax rate ranges between 2.46% and 6.84%.
Taxes in Nebraska compared to neighboring states:
Nebraska Income Tax Rates: 2.46% to 6.84% (based on income brackets)
Colorado Income Tax Rates: 4.63% (flat-rate)
Iowa Income Tax Rates: 0.33% to 8.53% (based on income brackets)
Kansas Income Tax Rates: 3.1% to 5.7% (based on income brackets)
Missouri Income Tax Rates: 1.5% to 5.4% (based on income brackets)
South Dakota Income Tax Rates: No state income tax
Wyoming Income Tax Rates: No state income tax
The sales tax rate in Nebraska is 5.5%. However, please note that there are additional local sales taxes that can vary by city and county. These local sales taxes can range from 0.5% to 2%, resulting in a combined sales tax rate that can be higher than the state rate.
The bottom line
The amount of money needed to live comfortably in Nebraska can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Nebraska. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.