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Nebraska Sales Tax

On this page you will find handy sales and use tax information about Nebraska.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Nebraska that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

5.50%
Range of Local Rates

0% – 7% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

Yes
Remote Seller Nexus Rules
ECONOMIC NEXUS

1/1/2019 (administrative announcement) – see state notice

4/1/2019 (enacted legislation)
MARKETPLACE NEXUS

4/1/2019
Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

230 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Nebraska Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: prescription drugs, insulin, newspapers, magazines, and journals, occasional sales, sales for resale

 

Entity types of exemptions: Charitable organizations, meals served by churches, schools, hospitals, and other organizations, nonprofit health care organizations, religious organizations, schools, state purchases

 

Nebraska Exemption Certificate Forms
State Links
State Tax Web Page

Nebraska Department of Revenue
Rate Look-Up Page

Nebraska Sales Tax Rate Look-Up
Registration Link

Register for Nebraska Sales Tax
History & Fun Facts
HISTORY

Nebraska enacted its sales and use taxes in 1967.

 

In 2003, Nebraska amended its sales and use tax laws to conform with the Streamlined Sales and Use Tax Agreement.
FUN FACTS
  • Nebraska is ranked 29th for its combined state and local sales tax of 6.94%

Nebraska Rules on Taxability of Telecommunications Services

The Nebraska State Tax Commissioner has ruled on a taxpayer’s question regarding the taxability of services associated with the installation or repair of telecommunications structures such as telephone, telegraph, mobile telephone or community television antennas. The Commissioner found that the…

Contractor Labor Now Exempt in Nebraska

The Nebraska Department of Revenue recently mailed a notice to nearly 6,500 contractors, building and trade associations, and others involved in the construction industry, explaining the sales and use tax changes relating to contractor labor.

Nebraska’s Tax Relief Legislation on Home-Repair Labor

On April 6, 2006, Governor Dave Heineman signed LB 968 into law. A portion of the new bill repeals the sales tax on home-repair labor, rescinding the residential tax levied on homeowners. Exempted labor may relate to: the original construction…

Nebraska Advantage Act Offers Credits, Exemptions to Qualified Businesses.

Nebraska has implemented an incentive program through the Nebraska Advantage Act to encourage state investments. Depending on the cost of the proposed investment and the amount of new employees required for the project, an applicant for the incentive program will…

Nebraska: Labor Charges Amended.

A Nebraska sales and use tax regulation regarding labor charges has been amended to clarify that charges for installation and repair labor are taxable when the item being replaced is taxable. The definition of repair labor has also been clarified…

Nebraska Governor Approves Agreement Amnesty Legislation.

On March 14, 2005 the Nebraska Governor approved Legislative Bill 16 (LB 16), which relieves taxpayers who register within twelve months after Nebraska’s participation in the Streamlined Sales Tax Agreement from liabilities associated with any tax not collected or remitted…

Nebraska clarifies rules for contractors on remittance of tax.

The Nebraska Department of Revenue has ruled that contractors using accrual basis accounting and receiving more than one payment on a taxable project are responsible for collecting and remitting Nebraska sales tax on each payment. Contractors receiving only one payment…

Nebraska law changes impact contractors.

Effective July 1, 2004, several law changes will directly affect the taxation of contractor labor charges. The changes include the following: (1) Contractors will be allowed to sell their labor tax-free to another contractor; (2) Option 2 and Option 3…

Nebraska enacts amnesty program.

The state of Nebraska has enacted a three-month amnesty program that will begin on August 1, 2004 and conclude on October 31, 2004. The amnesty program will cover all state taxes and allows delinquent taxpayers to pay any unreported taxes…

Nebraska pest control services taxable.

In Nebraska, clarification is included in a new regulation. Any materials, equipment, and/or supplies used to supply pest control services are taxable. This includes contracted services as well. Pest control services are defined as those services intended to inspect for,…

Nebraska exemption on equipment purchases in other states.

The gross receipts on the purchases of industrial machinery or equipment, including parts for repairs,purchases made by Nebraska or its political subdivisions from another state shall not be taxable if the other state provides a similar reciprocal exemption.. The gross…

Option 1 contractors taxation in Nebraska clarified.

Any labor affiliated with the sale of property to be attached to become real property by an Option 1 contractor will be taxable. The only exception would be if the attachment was purely incidental to the transfer of a building.…

Nebraska taxation of computer software.

As of October 1, 2002 charges by a retailer for computer software training will be subject to Nebraska sales and use tax. This will include retailers who out-sources training. Previous to October 1st there was an exemption for software training…

Nebraska rate change.

A temporary rate change has been established in the state of Nebraska. Effective October 1, 2002 the state sales and use tax rate has increased to 5.5%, up from 5.0%. The original rate of 5.0% will be reinstated on October…

Nebraska previous manufacturing exemption now taxable.

Along with many other Nebraska taxability changes, the sales of lime, synthetic slag, refractory materials, mill rolls, and guides for use in manufacturing steel or cement are now subject to sales and use tax effective October 1, 2002. (L.B. 1085,…

Multiple Nebraska rate and taxability changes.

Effective October 1, 2002, Nebraska repeals the sales and use exemption for the following services: building cleaning and maintenance, pest control, and security; motor vehicle washing, waxing, towing, and painting; computer software training; and installing and applying tangible personal property…

Nebraska Rate and Other Taxability Changes

Beginning October 1, 2002, Nebraska will have several alterations to their sales and use tax system. The sales tax rate was originally going to be 5.5%, up from 5%, from October 1, 2002 through September 30, 2003, but the rate…

Nebraska computer software clarified.

The difference between a taxable purchase of computer software and nontaxable charges for the service of software production for use of the employer are explained in a recent sales and use tax ruling. The billing method or invoicing may not…

Nebraska software license.

The tax on the purchase of a nonexclusive license to use certain computer software programs was refunded as it constituted tangible personal property and therefore qualified as property eligible for tax benefits. Typically, canned software, regardless of how it is…

The purchase of a computer software support agreement by the supplier for the correction of software errors is a maintenance agreement subject to Nebraska’s use tax, not a nontaxable agreement to provide repairs or generalized advice.

Distinguishing between “repairing” and “restoring” software, the Nebraska Supreme Court has made a computer software support agreement subject to its use tax. By correcting software errors, the company did not restore the software and the agreement was, therefore, a maintenance…