Nebraska's 5.5% state rate is among the more moderate in the Plains states, and Omaha and Lincoln each add 1.5% local tax (reaching 7% combined) through approved local option taxes. Nebraska exempts groceries and prescriptions, and has a clean, relatively simple tax structure compared to neighboring states.
Nebraska sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 5.50% |
| Avg local add-on | 1.45% |
| Avg combined | 6.95% |
| Maximum combined | 7.50% |
Note: Nebraska exempts groceries and prescription drugs.
Nebraska sales tax by city
Combined state + local sales tax rates for major cities in Nebraska:
| City | Combined Rate |
|---|---|
| Omaha | 7.00% |
| Lincoln | 7.25% |
What's exempt in Nebraska
Groceries
Exempt from Nebraska state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
How Nebraska sales tax is calculated
Sales tax in Nebraska is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 6.95% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (5.50%) plus any local city or county add-ons. Nebraska allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 6.95%:
$100 item
$6.95 tax
$106.95 total
$250 item
$17.38 tax
$267.38 total
$500 item
$34.75 tax
$534.75 total
$1,000 item
$69.50 tax
$1069.50 total
Additional tax-free items in Nebraska
Beyond the standard exemptions, Nebraska also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Nebraska Department of Revenue for complete rules.
Nebraska sales tax in context: rates, history, and neighbors
Nebraska's 5.5% state sales tax (since 2003) is one of the moderate rates among Plains states. Local sales taxes (1-2%) bring combined rates to 6.5-7.5% in major cities. Omaha 7%, Lincoln 7.25%, Bellevue 7%, Grand Island 7.5%. Nebraska exempts groceries and prescription drugs. Compared to neighbors: Iowa (~6.94% combined), Kansas (~8.73%), Missouri (~8.42%), Wyoming (~5.44%), South Dakota (~6.10%), Colorado (~7.79%) — Nebraska's rate sits in the middle of the Plains states. Nebraska is a Streamlined Sales Tax (SST) Agreement member, simplifying compliance for multi-state sellers. The state has been stable on rates with no major recent changes scheduled.
Online shopping & Nebraska sales tax
Nebraska requires economic nexus — remote sellers with $100,000+ or 200+ Nebraska transactions must collect Nebraska sales tax. Nebraska is a member of the Streamlined Sales Tax (SST) Agreement, simplifying compliance. Nebraska also taxes most digital goods including downloaded software, streaming services, and digital subscriptions at the standard rate.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Nebraska sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Nebraska state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Nebraska sales tax on common purchases?
Using Nebraska's average combined rate of 6.95%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | $8.34 | $128.34 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $69.43 | $1068.43 |
| Laptop / tablet | $1,299 | $90.28 | $1389.28 |
| New car ($35,000) | $35,000 | $2432.50 | $37432.50 |
| Home appliance | $1,500 | $104.25 | $1604.25 |
| Restaurant meal | $60 | $4.17 | $64.17 |
Based on Nebraska's average combined rate of 6.95%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Nebraska: business guide
If you sell goods or taxable services to Nebraska customers, here's what you need to know:
- Registration: Register for a Nebraska sales tax permit/license through the Nebraska Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Nebraska annual sales or 200+ transactions, you must collect Nebraska sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (5.50%) and applicable local rates.
- Destination vs origin sourcing: Nebraska uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Nebraska sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Nebraska Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Nebraska sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Nebraska resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Nebraska is a full member of the Streamlined Sales Tax (SST) Agreement, which simplifies multi-state sales tax registration and compliance through a single registration portal (streamlinedsalestax.org).
Nebraska-specific business compliance details
Nebraska businesses register with the Nebraska Department of Revenue at revenue.nebraska.gov for a Sales Tax Permit. Filing frequency: monthly for $900+/year tax, quarterly for $300-$900, annually for under $300. Out-of-state sellers with $100,000+ in Nebraska sales (or 200+ transactions) must collect Nebraska tax (economic nexus, since 2019). Nebraska is a Streamlined Sales Tax (SST) Agreement member. Marketplace facilitators collect Nebraska tax. Nebraska uses destination-based sourcing. Penalties: 5% per month (capped at 25%) plus interest. Compliance complexity is moderate due to local jurisdictions but manageable.
Nebraska sales tax frequently asked questions
What is the sales tax rate in Omaha vs Lincoln, Nebraska?
Both Omaha and Lincoln have a combined sales tax rate of 7% (5.5% state + 1.5% city). This is the standard rate for Nebraska's two largest cities, both of which have passed the maximum allowable local option tax. Smaller Nebraska cities and rural areas often have lower combined rates at just the 5.5% state base.
Are groceries taxable in Nebraska?
No — Nebraska fully exempts unprepared grocery food from sales tax. This includes produce, meat, dairy, bread, canned goods, and packaged foods. Prepared foods (hot deli items, restaurant meals), candy, and soft drinks are taxable at the full rate. Prescription drugs are also fully exempt. This combination of grocery and prescription exemptions provides meaningful relief for Nebraska families.
Does Nebraska have any sales tax holidays?
No — Nebraska does not currently offer any sales tax holidays. Nebraska's legislature has considered back-to-school holidays but has not enacted them as of 2026. The state's moderate 5.5% base rate and grocery exemption are seen as providing adequate consumer relief without needing temporary holidays.