Nebraska Sales Tax on Leases and Rentals Nebraska: Sales Tax Handbook


Are Leases and Rentals subject to sales tax?

While Nebraska's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Nebraska, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Nebraska.

Motor Vehicles
In the state of Nebraska, in the case of leases for the length of at least one year, lessors have the option to pay tax on the cost of the vehicle instead of collecting tax on the lease proceeds. Any rentals for a maximum of 31 days will be subject to an additional fee. It should be noted that the sales and use tax on lease and rental payments of any motor vehicles will be sourced to the primary property location which is associated with each individual lease payment.

Tangible Media Property
Sales of tangible media property are subject to sales tax in Nebraska.

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