Nebraska Sales Tax Rates

Total Range for 2024

5.5-7.5%

nebraska department of revenue logo

Why do you need to collect sales tax in Nebraska?

If you’re selling goods and services in Nebraska then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.

Two types of nexus exist:

  1. Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Nebraska, triggers this type. If you do, you likely need to collect sales tax.
  2. Economic Nexus: This kicks in when your sales within Nebraska exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.

In Nebraska, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.

Is what you’re selling taxable in Nebraska?

Now that you’ve understand the basics of Nebraska’s sales tax and nexus thresholds, let’s delve into whether your specific products or services are taxable.

OR EMAIL US

How to register for sales tax in Nebraska

Steps to Register Online:

  1. Go to the registration page: https://revenue.nebraska.gov/businesses/register-business
  2. New Users: Click “Create user account” and follow the instructions to register with a valid email address.
  3. Existing Users: Log in using your established credentials.
  4. Once logged in, follow the prompts to complete the online application. You’ll need information like:
    • Federal Employer ID (if required)
    • Social Security numbers, names, addresses, and titles of owners/partners/members/officers
    • Signed Power of Attorney (Form 33) if applicable

How to collect sales tax in Nebraska

  1. Collect the Sales Tax:
  • Once you know the applicable tax rate, add it to the sales price of your taxable goods or services.
  • Clearly show the breakdown of the sales price and the amount of sales tax on your receipts or invoices. Most Point-of-Sale (POS) systems can automate this calculation and display.
  1. Keep Accurate Records:
  • Maintain good records of all your sales transactions, including the sales price, tax amount collected, and the customer’s location.
  • These records are crucial for filing your sales tax returns accurately.
Example:

Buying a $20 shirt in Omaha, Nebraska (7.5% sales tax) would cost:

  • Shirt: $20.00
  • Tax (7.5% * $20.00): $1.50
  • Total: $21.50

FAQs

Do you have a physical nexus in Nebraska?

A business has a physical nexus in Nebraska, meaning it’s required to collect and remit sales tax, if it has any of these following factors:

  • Physical Presence:
    • Owning or operating an office, store, warehouse, or any other place of business in Nebraska.
    • Having employees, agents, salespeople, or contractors regularly present in the state for soliciting sales or other business activities.
  • Inventory:
    • Storing inventory for sale within Nebraska, even if through a fulfillment service like Amazon FBA.

Other factors might also establish nexus, so it’s best to consider these as well:

  • Attending trade shows or conferences in Nebraska for sales purposes.
  • Owning or leasing real property in Nebraska.
Do you have an economic nexus in Nebraska?

Nebraska establishes economic nexus based on sales thresholds, meaning you’ll need to collect and remit sales tax if your business reaches a certain level of sales within the state. Here’s what you need to know:

  • Thresholds:
    • Sales Amount: If your out-of-state business makes more than $100,000 in sales to Nebraska customers in a calendar year (current or prior), you have economic nexus.
    • Transaction Volume: Alternatively, exceeding 200 or more separate sales transactions delivered to Nebraska in a calendar year (current or prior) triggers economic nexus.
What is use tax in Nebraska?

Use Tax applies when you purchase tangible personal property from out-of-state vendors (without paying sales tax) and bring those items into Nebraska for storage, use, or consumption. In this case, you, the consumer, are responsible for paying the use tax directly to the state.

The use tax rate in Nebraska is the same as the combined state and local sales tax rate for your area.

Do you need a seller/reseller permit?

In Nebraska, a seller’s permit (also known as a resale certificate or sales tax permit) is required if your business meets either of these criteria:

  • Selling Taxable Goods: You plan to sell taxable goods at retail within Nebraska. This includes most tangible personal property, like clothing, furniture, or electronics. Exempt goods (groceries, prescription drugs) generally don’t require a permit for resale.
  • Collecting Sales Tax: You want to collect sales tax from your customers on taxable goods or services. Even if you only sell online to Nebraska customers, you might need a permit to collect and remit sales tax.
How to get a sales tax permit/license in Nebraska?
  • Go to the registration page
    • New Users: Click “Create user account” and follow the instructions to register with a valid email address.
    • Existing Users: Log in using your established credentials.
  • Once logged in, follow the prompts to complete the online application.
When are Nebraska's Returns Due?

In Nebraska, sales tax returns are due by the 20th of the month following the reporting period. This applies regardless of whether you file monthly, quarterly, or annually.

Here’s a breakdown for clarification:

  • Reporting Period: This refers to the specific timeframe (month, quarter, or year) for which you’re tracking your sales and tax collected.
  • Due Date: The 20th of the next month after the reporting period ends.
How to file sales tax in Nebraska

File Electronically using NebFile for Business:

  • The Nebraska Department of Revenue strongly encourages electronic filing for all sales tax returns.
  • You can access NebFile for Business on the Department of Revenue’s website
  • If you’re a new user, you’ll need to register for an account before filing.
  • The system will guide you through the process of entering your sales tax data and filing your return.

Make Your Tax Payment:

  • Concurrently with filing your return, you’ll also need to submit your sales tax payment to the Nebraska Department of Revenue.
  • NebFile for Business offers several payment options, including electronic funds transfer (EFT) and credit card payment (fees may apply).
  • You can also mail a check to the address provided on the return form.
Is anyone exempt from sales tax in Nebraska?

Yes, there are certain categories of people and organizations exempt from paying sales tax in Nebraska. Here’s a breakdown:

Exempt Customers:

  • Government Agencies: Federal, state, and local government entities are generally exempt from sales tax when purchasing for official government use.
  • Qualifying Non-Profit Organizations: Some non-profit organizations may be exempt from sales tax, but it depends on their specific purpose and registration status with the Nebraska Department of Revenue. Not all 501(c)(3) federal non-profits automatically qualify for sales tax exemption in Nebraska.
  • Certain Educational Institutions: Public and private schools may be exempt from sales tax on purchases directly related to educational purposes.

Exempt Items:

Nebraska exempts the sale of certain goods from sales tax. Here are some common examples:

  • Groceries: Food and food products for human consumption (excluding prepared or restaurant food).
  • Prescription drugs and medical supplies: Prescription medications, insulin, and certain medical equipment.
  • Livestock and Poultry Feed: Feed for commercial agricultural production.
  • Agricultural Products for Fuel: Products like corn and soybeans used for generating electricity or steam.
  • Machinery and Equipment: Depreciable agricultural machinery and equipment purchased for commercial agriculture might be exempt.

Contact Yonda Tax Today

OR EMAIL US