State of Nebraska Flag

Nebraska Sales Tax Guide for Businesses

Sales Tax Rate
5.5%
Local Taxes
Yes
Website
Department of Revenue
Tax Line
402-471-5729

We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Nebraska, and if so, how best to tackle the sales tax situation in the Cornhusker State.

After reading this, you’ll know:

  • Do you or don’t you need to collect Nebraska sales tax?
  • Which customers do you collect from?
  • How much do you collect?
  • What do you do with all the sales tax you’ve collected?
  • Way more than you probably ever wanted to know about Nebraska sales tax!

Do you have sales tax nexus in Nebraska?

Good news! You only have to begin thinking about Nebraska sales tax if you have sales tax nexus in Nebraska.

“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

Nebraska considers a seller to have sales tax nexus in the state if you have any of the following in the state:

  • An office or place of business
  • Employees, agents, sales people, contractors, etc. present in the state
  • Ownership of or goods in a warehouse, storage facility, etc.
  • Deriving receipts from rental or lease of property

You can click here to read exactly what the Nebraska Department of Revenue (Nebraska’s taxing authority) has to say about what constitutes sales tax nexus in Nebraska.

Is what you’re selling even taxable?

You’ve probably read this far because you realized you have sales tax nexus in Nebraska. Your next step is to determine if what you’re selling is even taxable.

Services in Nebraska are generally not taxable. So if you’re a freelance writer or a plumber, you’re in luck and you don’t have to worry about sales tax. But watch out – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products. For example, if you are a graphic designer and provide the end-result of your services on a thumb drive or CD, then that sale is taxable. If you provided your services electronically, they are not.

Tangible products are taxable in Nebraska , with a few exceptions. These exceptions include certain prescription medicine and medical devices.

So if you sell pet supplies, then charge sales tax to your Nebraska customers.

But if you’re a piano teacher, don’t charge sales tax to your Nebraska customers.

If you have sales tax nexus in Nebraska and your products are taxable, your next step is to register for a sales tax permit.

How to Register for a Sales Tax Permit in Nebraska

Sellers with sales tax nexus in Nebraska must apply for a Nebraska sales tax permit.

Don’t skip this step! Many states consider it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Nebraska.

How to Collect Sales Tax in Nebraska

So you’ve determined that you have sales tax nexus in Nebraska and what you’re selling is taxable. And you’re all set and registered for your Nebraska sales tax permit.

The next step is to determine how much sales tax to collect.

Nebraska is a destination-based sales tax state. So no matter if you live and run your business in Nebraska or live outside Nebraska but have nexus there, you would charge sales tax at the rate of your buyer’s ship-to location.

Example: You live and run your business in Kearney, NE where the sales tax rate is 7%, but you sell to a customer in Norfolk, NE. The sales tax rate in Norfolk, NE is 7.5%, so you would charge your customer that 7.5% rate.

You can look up your local sales tax rate by going to TaxJar.com/mobile on your mobile device or look up any sales tax rate by zip code by going to with TaxJar’s Sales Tax Calculator.

Should you collect sales tax on shipping charges in Nebraska?

Shipping charges are taxable in Nebraska, even if listed separately from the price of the item being sold.

Read a full explanation of sales tax on shipping in Nebraska here.

Rank City Population County Total SalesTax
1 Omaha 443,885 Douglas 7.000%
2 Lincoln 277,348 Lancaster 5.500%
3 Bellevue 55,510 Sarpy 5.500%
4 Grand Island 51,440 Merrick 5.500%
5 Kearney 33,021 Buffalo 5.500%
6 Fremont 26,474 Dodge 5.500%
7 Hastings 24,924 Adams 5.500%
8 Norfolk 24,366 Madison 5.500%
9 North Platte 24,194 Lincoln 5.500%
10 Columbus 22,797 Platte 5.500%
11 Papillion 19,510 Sarpy 5.500%
12 La Vista 16,921 Sarpy 5.500%
13 Scottsbluff 14,802 Scotts Bluff 5.500%
14 South Sioux City 13,319 Dakota 6.000%
15 Beatrice 12,388 Gage 5.500%
16 Chalco 11,258 Sarpy 5.500%
17 Lexington 10,075 Dawson 5.500%
18 Alliance 8,522 Box Butte 5.500%
19 Gering 8,334 Scotts Bluff 5.500%
20 Blair 7,975 Washington 5.500%

Caption: Top 20 Most Populous Cities in Nebraska and their Sales Tax Rates (June 2017)

When are Nebraska Sales Tax Returns Due?

When you file and pay Nebraska sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Nebraska?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Nebraska, you will be required to file and remit sales tax either monthly, quarterly, or annually.

How often you are required to file sales tax in Nebraska follows this general rule:

Average Monthly Tax Liability Filing Frequency
$250.00 and up Monthly
$75.00 to $249.99 Quarterly
$0 to $74.99 Annually

Nebraska sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

2017 Nebraska Monthly Sales Tax Filing Due Dates

Taxable Period Due Date
*January February 21, 2017*
February March 20, 2017
March April 20, 2017
*April May 22, 2017*
May June 20, 2017
June July 20, 2017
*July August 21, 2017*
August September 20, 2017
September October 20, 2017
October November 20, 2017
November December 20, 2017
* December January 22, 2018*

*indicates a due date pushed back due to a weekend or holiday

2017 Nebraska Quarterly Sales Tax Filing Due Dates

Taxable Period Due Date
Q1 (Jan - Mar) April 20, 2017
Q2 (Apr-Jun) July 20, 2017
Q3 (Jul-Sep) October 20, 2017
*Q4 (Oct-Dec) January 22, 2018*

*indicates a due date pushed back due to a weekend or holiday

2017 Nebraska Annual Sales Tax Filing Due Dates

Taxable Period Due Date
*Year 2017 January 22, 2018*

*indicates a due date pushed back due to a weekend or holiday

Click here for a chart of Nebraska sales tax filing due dates in 2017.

How to File Sales Tax in Nebraska

When it comes time to file sales tax in Nebraska you must do three things:

  1. Calculate how much sales tax you owe
  2. File a sales tax return
  3. Make a payment

We’ll walk you through these steps.

How to Calculate How Much Sales Tax You Owe in Nebraska

Calculating how much sales tax you should remit to the state of Nebraska is easy with TaxJar’s Nebraska sales tax report.

All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Nebraska sales tax return will be waiting for you in TaxJar. Try a 30-day free trial of TaxJar today!

How to File and Pay Sales Tax in Nebraska

You have two options for filing and paying your Nebraska sales tax:

  • File online – File Form 10 online at the Nebraska Department of Revenue. You can also remit your payment through Nebraska E-Pay.
  • File by mail – You can use Form 10 and file and pay through the mail.
  • AutoFile - Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.

Other Facts You Should Know about Nebraska Sales Tax Filing

There are a few more things you should know about sales tax in Nebraska:

Penalties:

  • Late Filing Penalty – Greater of 10% of tax due or $25.
  • Late Payment Penalty – Greater of 10% of tax due or $25.

Other penalties for fraud or serial offenses include higher penalties and even criminal charges.

“Zero returns”:

Nebraska requires that any seller with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay. Click here for a list of states that require zero sales tax returns.

And that’s it. You’ve mastered Nebraska sales tax filing! Now that sales tax is out of the way, you can get back to running your business.

Nebraska Sales Tax Resources

For more about Nebraska sales tax, check out the Nebraska section of the TaxJar blog.

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