A comprehensive resource on Nebraska's sales tax compliance, rates, and regulations for e-commerce businesses.
The Nebraska sales tax rate is 5.5% to 7%. This comprises a base rate of 5.5% plus mandatory local rates up to 2%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 7.5%.
You can check this page for the full table of sales tax rates in each city and county in Nebraska. Here’s a snippet of the same:
Before the Supreme Court's South Dakota v. Wayfair decision in 2018, online retailers without a physical presence in a state were not required to collect sales tax there.
However, purchases from those retailers were still subject to state use tax. Nebraska residents had to report and pay use tax directly to the Department of Revenue if no sales tax was collected.
After the Wayfair decision, online retailers in Nebraska began collecting sales tax. Legislative Bill 284 further clarified the tax responsibilities of remote sellers and marketplace facilitators.
The goal was to simplify sales tax collection and make it more consistent for online and in-state purchases.
Yes, Nebraska has been a full member of the Streamlined Sales Tax state since October 1, 2005
To calculate Nebraska sales tax, you can use the following formula:
Sales tax = (5.5% + local rate) * purchase price
For instance, if the local rate is 1.5% and the purchase price is $100, the sales tax would be $7 or 7%.
In destination-based sales tax states like Nebraska, the buyer's location determines the tax rate. In origin-based states, it's determined by the seller's location.
Nebraska has a destination-based sales tax system. Sellers must charge the tax rate of the buyer's address.
Type of nexus
Threshold
Physical presence
Any physical presence
Economic nexus
$100,000 in sales or 200 transactions
Yes, wholesalers in Nebraska still need a seller's access even if they only sell to other ecommerce businesses. The permit is required for buying wholesale.
Yes, even temporary sellers need a seller's permit if they meet the sales tax nexus thresholds in Nebraska.
Here are some of the sales tax exemptions in Nebraska:
Most groceries are exempt from sales tax in Nebraska, except prepared food, candy, dietary supplements, and soft drinks.
Yes, all clothing is taxable in Nebraska. There are no exemptions for clothes or footwear.
Yes, digital products like ebooks, music, movies, and software are taxable in Nebraska.
Yes and no. SaaS is considered taxable if it performs a security function.
Nebraska does not have a general tax on services. Only specific services like repair and installation services are taxable. Professional services are not taxable.
Nebraska has excise taxes on alcohol, tobacco, motor fuel, and other select items. The state does not allow recreational marijuana, so there are no marijuana excise taxes.
Being a destination-based sales tax state, remote sellers with no physical presence in Nebraska must register and collect sales tax once they exceed the economic nexus thresholds of $100,000 in sales or 200 transactions.
The Nebraska prepaid sales tax rates per gallon are:
Nebraska has local option sales taxes that certain cities and counties can impose. Local rates vary but do not exceed 2%.
Let’s look at the steps to collect sales tax in Nebraska now.
Even if you do not have a physical presence (remote sellers) in Nebraska, you must register with the Department of Revenue if you exceed the economic nexus thresholds of $100,000 in sales or 200 transactions annually.
You can voluntarily register to collect and pay sales tax for your Nebraska customers before exceeding the thresholds.
Once registered, you must charge the applicable Nebraska state and local sales tax rate based on the buyer's delivery address, no matter where your ecommerce business is located.
Register for a seller’s permit online using Nebraska's online registration system. Once registered, you can legally run your business and collect sales tax in Nebraska, even without a physical presence.
Yes, Nebraska requires remote sellers to collect sales tax on shipping charges when the products being shipped are taxable. If the products are exempt, shipping is exempt too.
Retailers must file Nebraska sales tax returns and remit taxes monthly, quarterly, or annually, depending on their sales volume. Returns must be filed even for periods with no taxable sales.
The filing periods and due dates for Nebraska are:
The penalty for late filing in Nebraska is 10% or $25 (whichever is greater) of the unpaid tax.
The due dates depend on the filing frequency assigned. For monthly filers, returns are due by the 20th of the following month. Quarterly returns are due on April 20, July 20, October 20, and January 20. Annual returns are due January 20.
A retailer must file a “Zero” sales tax return, even for periods without taxable sales. Failing to file can result in penalties.
The audit & appeals process is a series of steps an ecommerce business must go through if the Nebraska Department of Revenue audits them. The process begins with the auditor contacting the ecommerce business to schedule an audit.
The auditor will then review the ecommerce business's records and tax returns to determine if sales tax was not paid. If the auditor finds any discrepancies, they will report their findings.
The ecommerce business then has the opportunity to appeal the findings. The ecommerce business can appeal to the Nebraska Court of Appeals if the appeal is denied.
The Nebraska sales tax audit process typically involves:
During a Nebraska sales tax audit, the auditor will examine your records, including sales invoices, bank statements, tax returns, and exemption certificates. You should cooperate fully and have records available.
You can file a petition protesting the auditor's findings within 30 days. This begins the appeals process with the Tax Commissioner's Office. Grounds for appeal include unfair assessment and procedural errors.
Here are the steps for registering for sales tax in Nebraska:
To register for a sales tax permit in Nebraska, visit the Nebraska Department of Revenue website. You will need to provide:
Once registered, you must collect and remit Nebraska sales tax on taxable sales.
Online sellers must register if they exceed $100,000 in sales or 200 transactions from Nebraska buyers. Having a physical presence or marketplace facilitation also creates a nexus.
There is no cost to register for a sales tax permit in Nebraska. Registration is free.
You only need to register with the Nebraska Department of Revenue for a sales tax permit. No other agencies.
More Information & Contacts
For sales tax questions or audit appeals in Nebraska, contact:
There you have it—a comprehensive guide on Nebraska sales tax rules and regulations. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
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