Cost of Living in Lincoln, NE 2026

Affordability

How far your income goes in Lincoln

17.9%

Rent-to-Income Ratio

Affordable

Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Nebraska

State-level tax rates that affect your costs

6.64%

Income Tax (Top Rate)

5.5%

Sales Tax

1.73%

Property Tax Rate

Estimated Annual Costs

$12,540

Annual Rent

$4,647

State Income Tax

$4,294

Property Tax (est.)

Cost of Living Overview

Lincoln is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 77 (where 100 equals the national median), Lincoln residents can expect to pay median rent of $1,045/month while earning a median household income of $69,991/year.

The median home value in Lincoln, NE is $248,200, with typical monthly owner costs around $1,140 including mortgage, insurance, and taxes. The median rent-to-income ratio of 17.9% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Nebraska has a moderate income tax rate of 6.64%. Combined with a 5.5% sales tax rate and 1.73% effective property tax rate, the overall tax environment is a factor in the total cost of living in Lincoln.

Frequently Asked Questions

Common questions about living costs in Lincoln

What is the cost of living in Lincoln, NE?

The cost of living index in Lincoln, NE is 77 (US average = 100). Median monthly rent is $1,045, median household income is $69,991/year, and the median home value is $248,200.

Is Lincoln, NE affordable?

Yes, Lincoln is more affordable than the national average with a cost index of 77. The rent-to-income ratio is 17.9%—below the 30%% threshold considered affordable by HUD.

What is the average rent in Lincoln, NE?

The median gross rent in Lincoln, NE is $1,045 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $12,540.

What is the median household income in Lincoln?

The median household income in Lincoln, NE is $69,991 per year. This compares to the national median of approximately $80,000.

What are the taxes like in Nebraska?

Nebraska has a top income tax rate of 6.64%, a sales tax of 5.5%, and an effective property tax rate of 1.73%.

Lincoln, NE

Affordability

Tax Burden in Nebraska

Estimated Annual Costs

Cost of Living Overview

Frequently Asked Questions

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