Nebraska Sales Tax Guide for Businesses
- Sales Tax Rate
- Local Taxes
- Department of Revenue
- Tax Line
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
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.
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 Sales Tax|
|14||South Sioux City||13,353||Dakota||7.50%|
Caption: Top 20 Most Populous Cities in Nebraska and their Sales Tax Rates
When are Nebraska Sales Tax Returns Due?
Nebraska sales tax returns are always due the 20th of the month following the reporting period. You’ll be assigned a sales tax filing frequency when you apply for your Nebraska sales tax permit.
To break it down:
If you will remit more than $3,000 in sales tax to Nebraska annually, you will likely file monthly.
If you will remit between $900 and $2,999 in sales tax to Nebraska annually, you will likely file quarterly.
If you will remit less than $900 in sales tax to Nebraska annually, you will likely file annually.
2016 Nebraska Monthly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|January||February 25, 2016|
|February||March 25, 2016|
|March||April 25, 2016|
|April||May 25, 2016|
|May||June 27, 2016*|
|June||July 25, 2016|
|July||August 25, 2016|
|August||September 26, 2016*|
|September||October 25, 2016|
|October||November 25, 2016|
|November||December 26, 2016*|
|December||January 25, 2017|
2016 Nebraska Quarterly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|Q1 (Jan - Mar)||April 25, 2016|
|Q2 (Apr - Jun)||July 25, 2016|
|Q3 (Jul - Sep)||October 25, 2016|
|Q4 (Oct - Dec)||January 25, 2017|
2016 Nebraska Annual Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|Year 2016||January 25, 2017|
*indicates a due date pushed back due to a weekend or holiday
How to File Sales Tax in Nebraska
When it comes time to file sales tax in Nebraska you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- 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:
- 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.
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.