Nebraska Sales and Use Tax
Nebraska imposes a statewide sales and use tax rate of 5.5%. In addition to the Nebraska state sales tax, local jurisdictions may impose additional local sales tax in Nebraska, which can increase the total rate businesses must collect and remit.
What’s Taxable in Nebraska?
Nebraska sales and use tax applies to the sale of tangible personal property and certain services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
- Clothing
- Non-prescription medical items or drugs
- Telecommunication services
- Installation services
- Software as a Service (SaaS)
Businesses should also evaluate whether local sales tax Nebraska requirements apply based on where products are delivered or services are performed.
Sales Tax Nexus in Nebraska
A seller may be required to collect and remit Nebraska state sales tax if they establish nexus in the state. Nebraska recognizes both physical nexus and economic nexus standards.
Nebraska: Physical Nexus
Physical nexus is generally created when a business maintains a physical presence in Nebraska, including:
- A business location or office
- A warehouse or inventory storage location
- Employees or representatives operating in the state
- Vehicles used for business purposes
Nebraska: Economic Nexus
Nebraska enforces economic nexus requirements for remote sellers and marketplace facilitators. A seller must may establish economic nexus if, during the previous calendar year, it has:
- More than $100,000 in Nebraska sales, or
- More than 200 separate transactions in the state
Learn more on the Nebraska Remote Seller and Marketplace Facilitator FAQ page.
Nebraska Sales Tax Exemptions
Certain transactions may qualify for Nebraska tax exemptions from sales and use tax obligations.
Exempt Products and Services
- Most services (unless Nebraska statutes specify otherwise)
- Food and food ingredients
- Items used for agricultural purposes
- Bullion
- Medical equipment and prescription medical items
- Some digital goods (digital books, digital audio-visual works, digital audio)
Entity- or Use-Based Exemptions
Additionally, Nebraska exempts sales to certain entities from the sales/use tax, including:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Churches and houses of religious worship
- Nonprofit schools and hospitals
- Retailers selling for resale
- Government entities
How to Claim Sales Tax Exemption in Nebraska
To claim Nebraska tax exemptions, purchasers generally must provide a valid exemption certificate at the time of sale. The Nebraska Department of Revenue commonly accepts Form 13 for exemotion documentation purposes.
Nebraska Filing and Remittance Requirements
Businesses collecting Nebraska state sales tax must file and remit taxes using approved filing methods, including:
- E-filing through NebFile for Business and payments through Nebraska E-Pay
- Simplified Electronic Return (SER) for SST participants and their affiliates
- Paper filing using Form 10 and ST-Local
Although Nebraska does not universally mandate electronic filing, businesses that paid more than $5,000 in sales tax during the prior year must remit payments electronically.
How to Register for a Nebraska Sales Tax License
Nebraska businesses or individuals selling tangible personal property or certain services to Nebraska consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
Frequently Asked Questions
Is Nebraska a part of the Streamlined Sales Tax (SST) initiative?
Yes, Nebraska is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does Nebraska have sales tax holidays?
No, Nebraska does not currently offer sales tax holidays.
Does Nebraska collect any special point-of-sale fees?
Yes. Nebraska imposes certain point-of-sale fees on specific products and services, including the E911 Fee and Tire Fee.
Does Nebraska apply sales tax to shipping charges?
Generally, yes. Nebraska tax regulations define “sales price” to include delivery charges, meaning shipping and delivery fees are typically taxable.
For sourcing sales tax, is Nebraska origin or destination based?
Nebraska is a destination-based sourcing state. Businesses generally collect sales tax based on the delivery location, including any applicable local sales tax Nebraska jurisdictions impose.
Can I use the Simplified Electronic Return (SER) in Nebraska if I’m not in the SST Model 1 program?
Yes. Nebraska accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage multi-state tax compliance? Learn how Sovos simplifies compliance for businesses operating across jurisdictions.