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NebraskaSales Tax

A Complete Guide For Businesses

Automate My NebraskaSales Tax Filings

State Rate
5.50%

Local Tax
yes

State Portal
Department of Revenue

Phone
(518) 485-2889

General requirements

Nebraska is a destination-based state (sales are taxed where the buyer is located for district taxes).

  • Sales tax is charged on the sale of tangible personal property (TPP) and certain services
  • For manufacturers, purchases used for production aren’t taxed
  • For distributors, items purchased for resale aren’t taxed

Businesses can file returns and make payments online at the Nebraska Online Filing System.

Rates

The Nebraska state sales and use tax rate is 5.5%. In addition, local sales and use taxes are charged in some areas. The total combined rate ranges from 5.5% to 7.5%.

How food is taxed

Sales of food or food ingredients for home preparation and consumption are not taxable. Food which may be exempt from sales tax includes bottled/canned soft drinks and candy.

Prepared foods such as restaurant meals, fountain drinks, and ice cream sundaes are taxable.

Nexus in Nebraska

Business activities that establish a minimum tax connection to the state include:

  • Maintaining a physical place of business including a warehouse or distribution center
  • Having employees, independent contractors, or representatives working in the state
  • Leasing tangible personal property in the state
  • Engaging in the regular or systematic solicitation of sales in the state

Find more information about nexus in Nebraska.

Filing schedule

The Department of Revenue will determine your filing frequency and notify you when you receive your sales tax permit.

You’ll file monthly, quarterly, or annually, based on the amount of state sales tax collected.

Returns are due on the 20th of the month following the reporting period.

Registering to collect sales tax in Nebraska

To apply for a Nebraska Identification Number, you can either register online or complete the Nebraska Tax Application, Form 20. Once registered, you’ll be issued a Sales Tax Permit. The permit must be displayed at each retail location.

Penalties

The penalty for filing returns or payments after the due date is $25, or 10% of the tax, whichever is greater.

See how easy it is to automate your sales tax filings.

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