Nebraska Sales Tax 2023 - 2024

Sales tax is a state-imposed levy on the sale of tangible goods and some services. It is collected by the seller and remitted to the state tax authority. The state’s revenue from sales tax is used to fund a variety of state and local services and programs. If your business has nexus in Nebraska and you sell taxable items, you must register with the state tax authorities, collect the correct amount of Nebraska sales tax for each transaction, file returns, and remit taxes to the state.

Nebraska has a two-tiered sales tax system:

• State Sales Tax: Nebraska’s base state sales tax rate is 5.5%. This applies to most taxable goods and services sold within the state.
• Local Sales Tax: In addition to the state rate, many cities and counties in Nebraska have additional local sales taxes. These local rates can range from 0.5% to 2%.

How to File Nebraska Sales Tax?

The Nebraska Sales Tax Return, also known as Form 10, is a document you file with the Nebraska Department of Revenue to report your sales activity and the amount of sales tax you collected during a specific filing period.

The Nebraska Department of Revenue has made it simple for businesses to file their sales tax returns online. The system figures out the amount owed, taking into account different sales tax rates based on location. This tool is great for small business owners selling products and services online. In addition to the online system, the department also offers a paper form for those who don’t want to use the internet.

Nebraska Sales Tax Exemptions

Most tangible personal property is subject to sales tax, but some items are exempt, including groceries (excluding prepared food), prescription drugs, and medical equipment. State sales tax on repair parts for agricultural equipment is also exempt. In addition, some service transactions, such as custom software development and hotel room charges, are also taxable.

Some customers, including government agencies and nonprofit organizations, are exempt from paying sales tax. To avoid paying sales tax, these entities must provide the seller with a valid exemption or resale certificate.

Nebraska Sales Tax Due Dates

When you register for sales tax, the state will assign you a filing frequency. This is typically based on the amount of sales you make to buyers in the state. If you are a high-revenue business, you will likely be required to file monthly or quarterly.

Nebraska’s sales and use tax due dates depend on your filing frequency and the end date of the reporting period. The return and payment are generally due on the 20th day of the month following the reporting period. If this date falls on a weekend or holiday, the due date moves to the next business day.

If you are a small business that doesn’t have the resources to keep up with changing sales tax regulations, consider outsourcing your sales tax compliance to a professional accountant or bookkeeper. They can help you stay compliant by providing you with the latest Nebraska sales tax rates and connecting you with firms that fully automate the process.