Lincoln Sales Tax Guide 2025 (Nebraska)

Navigating sales tax compliance in Lincoln, Nebraska, including sales tax registration and filing sales tax returns, can be challenging for businesses of all sizes. Understanding the local regulations, Nebraska sales tax rates, and filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance and offer integrations for businesses, including guidance on the streamlined sales tax program, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax and use tax in Lincoln for 2025.

Lincoln Sales Tax Rate (Nebraska)

As of 2025, Lincoln, Nebraska, imposes a total sales tax rate of 7.25%, combining the state rate of 5.5% and a local rate of 1.75%. Nebraska implemented its sales and use tax in 1967, with rates adjusted over time to support municipal services.

Jurisdiction	Sales tax rate
State Tax	5.50%
County Tax	0.00%
City Tax	1.75%
Special Tax	0.00%
Combined Tax	7.25%

(Note: Sales tax rates are subject to change. Check the Nebraska Department of Revenue’s website for the latest updates.)

Lincoln NE Sales Tax Calculator

If you own a business in Lincoln, Nebraska, using a sales tax calculator for sales and use tax registration and accurately calculating and collecting sales tax are essential for compliance and pricing. Below is a step-by-step example to ensure you charge and remit the correct amount.

Step 1: Understand the Sales Tax Rate in Lincoln, NE

As of 2025, the total sales tax rate in Lincoln, NE, is 7.25%, which consists of:

• Nebraska State Sales Tax: 5.5%
• Lincoln Local Sales Tax: 1.75%

Most tangible goods and some services are taxable, while groceries and prescription medications are typically exempt.

Step 2: Convert the Sales Tax Rate to Decimal Form

Sales tax is applied as a percentage, so convert 7.25% into decimal form:

7.25% = 0.0725

Step 3: Calculate the Sales Tax on a Product

Let’s say you own a home improvement store in Lincoln, NE, and you sell a grill for $500 before tax.

To determine the sales tax amount, multiply the price by the tax rate:

500 × 0.0725 = 36.25

So, the sales tax on this grill is $36.25.

Step 4: Determine the Total Amount the Customer Pays

Now, add the sales tax to the original price to find out the final amount the customer owes:

500 + 36.25 = 536.25

Thus, the customer will pay $536.25 in total.

Properly calculating and remitting sales and use tax using a sales tax calculator and obtaining sales tax registration in Lincoln, NE is crucial for compliance with Lincoln tax laws. Keeping track of collected taxes and filing payments on time ensures your business stays in good standing.

FAQ on Sales Tax in Lincoln NE

What is Lincoln Nebraska Sales Tax?

Lincoln, NE, has a total sales tax of 7.25%, which includes state and local taxes.

How Much is Sales Tax in Lincoln NE?

The total sales tax in Lincoln, NE, is 7.25%, consisting of 5.5% Nebraska state tax and 1.75% Lincoln local tax.

What is Lincoln Nebraska's Sales Tax Rate?

The sales tax rate in Lincoln, NE, is 7.25%, applicable to most goods and some services.

Lincoln Sales Tax Filing Steps