Sales tax in Nebraska is a 5.5% statewide rate in 2025, with local taxes ranging from 0.5% to 2%, resulting in combined rates up to 8%. Nebraska participates in the Streamlined Sales Tax initiative (SSUTA), streamlining compliance for multi-state businesses.
In Nebraska, the due dates for paying sales taxes depend on your assigned filing frequency, which is determined by your total taxable sales and tax liability.
Filing Frequency | Criteria | Due Date |
---|---|---|
Monthly | Required for businesses collecting more than $3,000 in sales tax per month. | Due on the 25th of the following month. |
Quarterly | For businesses collecting $900–$3,000 in sales tax per quarter. | Due on the 25th of the month following the quarter (e.g., April 25 for Q1). |
Annually | For businesses collecting less than $900 annually in sales tax. | Due on January 25 of the following year. |
Nebraska imposes a state sales tax of 5.5%, with additional local sales taxes that can bring the combined rate up to 8% in some areas.
Tax Type | Rate | Description |
---|---|---|
State Sales Tax | 5.5% | Applies to most retail sales of tangible personal property and certain services. |
Local Sales Tax | Varies by Location | Additional sales tax imposed by cities and counties, ranging from 0.5% to 2.5%. |
Below is a table highlighting the 20 largest cities in Nebraska along with their respective local and combined sales tax rates:
City | Local Sales Tax Rate | Total Sales Tax Rate |
---|---|---|
Bellevue | 1.5% | 7.0% |
Columbus | 2.0% | 7.5% |
Fremont | 2.0% | 7.5% |
Grand Island | 1.5% | 7.0% |
Hastings | 1.5% | 7.0% |
Kearney | 1.5% | 7.0% |
La Vista | 1.5% | 7.0% |
Lincoln | 1.75% | 7.25% |
Norfolk | 2.0% | 7.5% |
North Platte | 1.5% | 7.0% |
Omaha | 1.5% | 7.0% |
Papillion | 2.0% | 7.5% |
Ralston | 2.0% | 7.5% |
Scottsbluff | 1.5% | 7.0% |
South Sioux City | 2.0% | 7.5% |
York | 1.5% | 7.0% |
For city-based tax rates in Nebraska, visit our Nebraska Local Sales Tax Directory and search for your city.
An online retailer based in Colorado establishes economic nexus in Nebraska by exceeding $100,000 in annual sales or 200 transactions, requiring them to collect and remit sales tax for purchases made by Nebraska residents. The retailer makes sales to customers in multiple cities, each with different local tax rates.
Detail | Description |
---|---|
Business | Online retailer based in Colorado with economic nexus in Nebraska. |
Customer Purchases | Customer A in Omaha $1,200 total, $800 taxable, $400 exempt (e.g., groceries or medications). Customer B in Lincoln $900 total, $600 taxable, $300 exempt. Customer C in Grand Island $500 total, $400 taxable, $100 exempt. |
Customer Locations | Omaha 7.0% total sales tax. Lincoln 7.25% total sales tax. Grand Island 7.5% total sales tax. |
Customer | Taxable Amount | Total Tax Rate | Total Tax Due |
---|---|---|---|
Customer A | $800 | $800 × 7.0% = $56.00 | $56.00 |
Customer B | $600 | $600 × 7.25% = $43.50 | $43.50 |
Customer C | $400 | $400 × 7.5% = $30.00 | $30.00 |
$56.00 (Customer A) + $43.50 (Customer B) + $30.00 (Customer C) = $129.50
Kintsugi Intelligence automates location-based tax rate application, exemption management, and accurate reporting across all your one-click integrations to ERP, HR, and eCommerce systems like Shopify, BigCommerce, Amazon, Quickbooks, and Rippling.
Yes, Nebraska imposes sales tax on Software as a Service (SaaS) when it is classified as taxable tangible personal property.
Category | Details | Examples |
---|---|---|
Taxable SaaS | SaaS is taxable under Nebraska’s 5.5% state sales tax, plus any applicable local taxes, if it is prewritten software delivered electronically. | Cloud-based accounting software, CRM tools. |
Non-Taxable SaaS | Custom software or services incidental to the SaaS product may be exempt, depending on the nature of the transaction. | Custom software solutions. |
Requirements for Businesses | SaaS providers with nexus in Nebraska must collect and remit sales tax for taxable transactions. | Out-of-state providers meeting nexus thresholds. |
For more details on Nebraska sales tax for SaaS and digital products, read Kintsugi's guide: Nebraska Sales Tax on Digital Products: A 2025 Guide for Businesses.
Yes, Nebraska imposes sales tax on clothing, but there are no specific exemptions or reduced rates:
Category | Details |
---|---|
Taxable Clothing | All clothing and footwear are subject to Nebraska’s 5.5% state sales tax, plus any applicable local sales taxes. |
No Exemptions | Nebraska does not exempt clothing from sales tax, regardless of price or type. |
No Sales Tax Holiday | Nebraska does not offer a sales tax holiday for clothing purchases. |
Nebraska imposes a 5.5% statewide sales tax, with local taxes ranging from 0.5% to 2%, resulting in combined rates up to 8%.
Multiply the taxable amount by the 5.5% statewide rate and add applicable local taxes based on the customer’s location.
Sales tax nexus in Nebraska establishes a business's obligation to collect and remit sales tax, triggered by physical presence, economic activity, or relationships with in-state entities.
Type of Nexus | Description | Threshold/Criteria |
---|---|---|
Physical Nexus | Created by having a physical presence in Nebraska, such as a location, employees, or inventory. | Office, warehouse, storefront, or employees operating in Nebraska. |
Economic Nexus | Triggered by making substantial sales into Nebraska, even without a physical presence. | More than $100,000 in gross sales or 200 separate transactions in the current or previous year. |
Affiliate Nexus | Created through relationships with in-state businesses that help facilitate sales. | A Nebraska-based affiliate promotes or sells products for the out-of-state retailer. |
Marketplace Nexus | Applies to sales made through marketplace facilitators operating in Nebraska. | Facilitators must collect and remit sales tax on behalf of sellers. |
Inventory Nexus | Triggered by storing inventory in Nebraska, even if through a third party (e.g., warehouses). | Any physical inventory located in Nebraska. |
Employee or Agent Nexus | Having employees, independent contractors, or agents perform services in Nebraska. | Sales or service activities conducted by representatives in Nebraska. |
Sales tax nexus in Nebraska is established through physical presence or economic nexus, triggered by exceeding $100,000 in annual sales or 200 transactions within the state.
In 2025, Nebraska maintains its 5.5% state sales tax, with exemptions for groceries, prescription medications, agricultural machinery, and manufacturing equipment.
A Nebraska state tax-exempt certificate, also known as Form 13, is a document that allows eligible buyers to make tax-exempt purchases in Nebraska. It certifies that the buyer qualifies for an exemption under Nebraska sales tax law.
Exemption Category | Description | Examples |
---|---|---|
Resale | Items purchased for resale. | Products bought by retailers for inventory. |
Manufacturing | Materials or equipment used directly in production. | Machinery, raw materials, and production tools. |
Nonprofit Organizations | Tax-exempt entities making qualified purchases. | Purchases by charitable or educational organizations. |
Government Agencies | Federal, state, or local government entities. | Supplies or equipment bought by government offices. |
Agricultural Use | Equipment and supplies used exclusively in farming. | Tractors, fertilizers, and seeds. |
Over 85% of Nebraska businesses cite tax compliance as crucial to managing costs effectively. This table highlights key Nebraska sales tax exemptions to help businesses stay compliant and save money:
Category | Exempt Items |
---|---|
Essential Goods | Prescription medications, medical equipment, and certain mobility-enhancing devices. |
Nonprofit Organizations | Purchases by qualifying charitable, religious, and educational organizations. |
Government Entities | Transactions made by federal, state, and local government agencies. |
Agricultural Products | Seeds, fertilizers, irrigation equipment, and machinery used in agricultural production. |
Manufacturing | Machinery and equipment used directly in manufacturing or processing. |
Resale | Items purchased for resale are exempt with proper resale certificates. |
Educational Materials | Textbooks and educational supplies purchased for school use. |
Occasional Sales | Casual or isolated sales by individuals not engaged in regular business activities. |
For more details on Nebraska sales tax exemptions, read Kintsugi's guide: 2025 Sales Tax Exemption Nebraska: What Businesses Must Know.
This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in Nebraska.
To obtain a sales tax permit in Nebraska, follow these steps:
To register for Nebraska sales tax, follow these steps. Nebraska also offers customer support for registration through the Nebraska Department of Revenue (DOR) at (800) 742-7474.
You must register for Nebraska sales tax if your business:
Before starting, ensure you have:
This section breaks down Nebraska's sales tax requirements, including filing rules, taxable items, and permits.
Nebraska sales tax filing requirements depend on the size and frequency of taxable sales:
Filing Frequency | Criteria |
---|---|
Monthly | For businesses collecting $3,000 or more in sales tax annually. |
Quarterly | For businesses collecting $900 to $2,999 in sales tax annually. |
Annually | For businesses collecting less than $900 in sales tax annually. |
Note: Nebraska requires electronic filing and payment for most businesses. Businesses must track and report local sales taxes in addition to the 5.5% state sales tax. Proper documentation of taxable and exempt sales is critical for compliance.
Nebraska sales tax applies to the following categories, with certain exemptions such as for groceries, prescription medications, agricultural machinery, and manufacturing equipment.
Category | Description | Examples |
---|---|---|
Tangible Personal Property | Most goods, unless exempt. | Furniture, electronics, clothing (if taxable). |
Taxable Services | Certain services are subject to sales tax. | Amusements, telecommunications, some repairs. |
Digital Goods | Digital products transferred electronically. | Prewritten software, e-books, digital media. |
Leases and Rentals | Rentals of equipment and property. | Equipment rentals, car rentals. |
Prepared Foods | Meals and drinks sold by food service businesses. | Restaurant meals, takeout, catering. |
Note: Nebraska imposes a 5.5% statewide sales tax, with local taxes that can bring the total rate up to 8%. Businesses must report and remit taxes for both state and local jurisdictions, ensuring accurate tracking of exemptions.
To file sales tax in Nebraska, follow these steps:
Nebraska sales tax is due on the 25th of the month following the reporting period for monthly and quarterly filers, or January 25th for annual filers.
No, Nebraska does not currently offer a sales tax holiday.
Managing Nebraska sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.
Feature | Description |
---|---|
Accurate Tax Rate Calculations | Automatically apply the correct state and local sales tax rates based on your customer’s location. |
Exemption Management | Seamlessly identify and apply exemptions for groceries, prescription medications, and other qualifying items. |
Effortless Filing | Streamline your tax reporting and filing process with integrations that calculate, track, and submit sales tax payments. |
ERP and eCommerce Integration | Connect with platforms like Shopify, QuickBooks, Amazon, and more for seamless tax data management. |
Let Kintsugi handle the complexities of Nebraska sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!
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@2025 KintsugiAI, Inc. All rights reserved.