Nebraska state seal

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%.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your Nebraska sales tax rate:

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

Economic nexus in Nebraska:

  • The state has yet to pass a law on economic nexus, but they have stated the following in an FAQ:
    • Sellers whose sales into Nebraska exceed $100,000 gross revenue or 200 separate transactions in the previous calendar year must register with the state, collect sales tax on sales to Nebraska, and remit that sales tax to the state.
    • Effective date: Jan. 1, 2019

    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.

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