What is the Nebraska sales tax? Nebraska: Sales Tax Handbook

Nebraska:

Nebraska Sales Tax Rate NE Sales Tax 2016

State Sales Tax Local Sales Tax Range Average Local Tax Average Combined Tax Max Combined Tax
5.50% 0.00% - 2.00% 0.443% 5.943% 7.5%

2016 Nebraska Sales Tax Handbook

These rankings show how the Nebraska sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

Nebraska's Sales Tax By The Numbers:

Nebraska has a lower-than-average sales tax, including when local sales taxes from Nebraska's 122 local tax jurisdictions are taken into account.


Rankings by Average State + Local Sales Tax:

  Ranked 35th highest by combined state + local sales tax

  Ranked 22nd highest by per capita revenue from state + local sales taxes ($1,021 per capita)


Rankings by State Sales Tax Only:

  Ranked 10th highest by state sales tax rate

  Ranked 19th highest by per capita revenue from the statewide sales tax ($897 per capita)



Download Nebraska datasheet Printable PDF Nebraska Sales Tax Datasheet

Nebraska has a statewide sales tax rate of 5.50%, which has been in place since 1967.

Municipal governments in Nebraska are also allowed to collect a local-option sales tax that ranges from 0.00% to 2.00% across the state, with an average local tax of 0.443% (for a total of 5.943% when combined with the state sales tax). The maximum local tax rate allowed by Nebraska law is 2.00%. You can lookup Nebraska city and county sales tax rates here.

This page provides an overview of the sales tax rates and laws in Nebraska. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Nebraska Sales Tax Handbook's Table of Contents above.

What is exempt from sales taxes in Nebraska?

Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Nebraska taxes five types of commonly-exempted goods:


Clothing

  5.5%

Groceries

  EXEMPT

Prepared Food

  10%

Prescription Drugs

  5.5%

OTC Drugs

  5.5%

For more details on what types of goods are specifically exempt from the Nebraska sales tax see Nebraska sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Nebraska? Taxation of vehicle purchases in particular are discussed in the page about Nebraska's sales tax on cars.

Are services subject to sales tax in Nebraska?

"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Nebraska, specified services are taxable.

About the Nebraska Sales Tax

The state of Nebraska has relatively simple sales tax rate, and utilizes a flat state tax rate. In addition to the flat state tax rate, the municipalities have the option to impose an additional sales tax rate, which can vary significantly depending on which jurisdiction you are in. These local tax rates would be in addition to the state rate.

Is the Nebraska Sales Tax Destination-Based or Origin-Based?

Nebraska is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Nebraska from a Nebraska vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.

Is Nebraska a Streamlined Sales Tax State?

Nebraska is a member of the Streamlined Sales and Use Tax Agreement, which means that the Nebraska Department of Revenue has taken significant steps to simplify Nebraska's sales tax rules and administration process.

Contact the Nebraska Department of Revenue

The Nebraska Sales Tax is administered by the Nebraska Department of Revenue. You can learn more by visiting the sales tax information website at www.revenue.nebraska.gov.

Phone numbers for the Sales Tax division of the Department of Revenue are as follows:

  • Local Phone: (402) 471-5729
  • Toll-Free Phone: (800) 742-7474 (NE and IA only)

Learn More: Our Book Recommendations

If you would like to learn more about how to manage your Nebraska sales taxes, we recommend the following books:


Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amaxon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amaxon

Simplify Nebraska sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.


Nebraska Sales Tax Rates by Zip Code:

Need an updated list of Nebraska sales tax rates for your business? Download our Nebraska sales tax database!


** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/nebraska