Nebraska — Sales & Use Tax

Nebraska imposes a state sales tax on the gross receipts from all retail sales of tangible personal property sold in Nebraska, as well as on certain enumerated services including utility services, community antenna television and satellite services, admissions, warranties and service agreements covering taxable property, and specified taxable services under statute. The standard statewide base rate is 5.5 percent.

Good Life District (GLD) state rate treatment — post-LB 707 changes

From July 1, 2024 through September 30, 2025, the GLD state sales tax rate was 2.75 percent for transactions within designated good life districts located in incorporated municipalities. However, effective October 1, 2025, the state rate in Good Life Districts (GLDs) increased: the 5.5 percent state sales and use tax applies to all transactions made within a GLD, except for certain transactions in GLD Avenue One (District 801).

For GLD Avenue One, the reduced 2.75 percent rate applies only to transactions by retailers electing to be good life district retailers, and specifically excludes sales of aircraft, ATVs, barges, motor vehicles, motorboats, railroad rolling stock, semitrailers, and trailers. These GLD rules are codified in Neb. Rev. Stat. §§ 77-2701.02(6)-(7), 77-4405 as amended by LB 707 (2025 Neb. Laws, L.B. 707). The Nebraska Department of Revenue confirms these changes in its 2025 Legislative Changes summary and on the Sales and Use Tax page, both effective October 1, 2025.

Election procedure and DOR administrative process for Avenue One status

To qualify for the reduced 2.75% state rate as a retailer in Avenue One (District 801), a retailer must elect to be a “Good Life District retailer.” However, as of July 7, 2026, there is no published Department of Revenue guidance, form, registration process, or compliance procedure detailing how a retailer makes or maintains this election. No official instructions exist on required forms, deadlines, renewal, or revocation. The DOR’s official web page and the official local rate schedule reference “Opted-In GLD Avenue One Retailer” eligibility for the rate, but neither source specifies any administrative steps to obtain or document this status.

Unable to confirm any official administrative procedure as of 2026-07-07.

Additional local (municipal) sales taxes may apply on top of the state rate, including in GLDs.

The sales tax is collected by the retailer from the consumer, and all gross receipts are presumed taxable unless the contrary is established by the seller.

Source: Neb. Rev. Stat. § 77-2701.02; Neb. Rev. Stat. § 77-4405; Neb. Rev. Stat. § 77-4413; Nebraska Department of Revenue: 2025 Legislative Changes; Nebraska Department of Revenue: Nebraska Sales and Use Tax; Nebraska DOR: Local Sales and Use Tax Rates (April 1, 2026)

In Nebraska, remote sellers must include all retail sales—whether taxable or exempt (except sales for resale, sublease, or subrent)—when calculating whether they meet or exceed the $100,000 economic-nexus threshold or 200-transaction threshold. There is no state-level exclusion for exempt sales made to nonprofits, government buyers, or manufacturers: only those specifically for resale, sublease, or subrent are excluded from the count.

What must be counted: Per the Department of Revenue’s binding FAQ: "A remote seller is required to obtain a sales tax permit and collect and remit Nebraska sales tax if it made total retail sales of property or services for delivery into Nebraska (other than sales for resale, sublease, or subrent) exceeding $100,000, or 200 or more separate transactions, in the prior or current calendar year." This “all sales other than resale, sublease, or subrent” definition is controlling for the threshold calculation. Exemptions for reasons such as nonprofit, governmental, or qualified manufacturing use do not remove those sales from the threshold calculation—unless the transaction is a bona fide resale, sublease, or subrent.

Authority and monitoring for updates: As of June 2026, neither statutory law nor updated DOR regulation or enforcement guidance modifies the Department's position, and no audit or litigation developments were identified that change this interpretation. The DOR’s published administrative FAQ remains the controlling public statement. Best practice: monitor DOR bulletins and audit notices for any future changes or clarifications—especially because remote seller and marketplace rules are subject to legislative revision and evolving DOR enforcement post-Wayfair.

Source: Nebraska Department of Revenue Remote Seller and Marketplace Facilitator FAQs

Not yet human confirmed. Authority is administrative at present; guidance is current as of 2026-06-26.

A multivendor marketplace platform (marketplace facilitator) must register, collect, and remit Nebraska sales tax if it exceeds either $100,000 in total gross revenue from all Nebraska sales made or facilitated or 200 or more separate Nebraska sales transactions in the previous or current calendar year. The marketplace facilitator collects and remits tax on each Nebraska sale it makes directly and on each sale it facilitates for marketplace sellers. Marketplace sellers are relieved of the duty to collect or remit tax on sales facilitated by a registered marketplace facilitator.

Source: Neb. Rev. Stat. § 77-2701.13(3); Notice for Remote Sellers and Marketplace Facilitators, Nebraska Department of Revenue

Nebraska imposes a use tax on the storage, use, or other consumption of tangible personal property and certain services in Nebraska, when Nebraska sales tax was not paid at the time of purchase. The use tax normally matches the state sales tax rate.

Good Life District (GLD) use tax rate treatment — post-LB 707 changes

From July 1, 2024 through September 30, 2025, the use tax rate in designated good life districts (GLDs) within incorporated municipalities was 2.75 percent, with the standard 5.5 percent rate applying to GLD areas outside incorporated cities. Effective October 1, 2025, as amended by Legislative Bill 707 (2025 Neb. Laws, L.B. 707), the statewide 5.5 percent use tax rate applies to all transactions within any GLD, except for Avenue One GLD (District 801). In Avenue One GLD, the reduced 2.75 percent rate applies only to transactions by retailers who elect to be designated good life district retailers, and specifically does not apply to sales of aircraft, ATVs, barges, motor vehicles, motorboats, railroad rolling stock, semitrailers, or trailers.

If a taxpayer pays applicable Nebraska sales tax on a transaction, the liability for use tax is extinguished. Property sold for delivery in Nebraska is presumed to be for taxable storage, use, or consumption unless the purchaser proves otherwise.

Source: Nebraska Department of Revenue: Nebraska Sales and Use Tax; Nebraska Department of Revenue: 2025 Legislative Changes; Neb. Rev. Stat. § 77-2701.02; Neb. Rev. Stat. § 77-4405

Nebraska requires retailers to obtain and retain valid resale or exemption certificates to be relieved of sales tax collection liability. The Department of Revenue's rules on "good faith" acceptance, documentation timing, and recordkeeping are detailed in 316 Neb. Admin. Code ch. 1, § 013 (Reg-1-013); background authority is provided by Neb. Rev. Stat. § 77-2706, which assigns the burden of proving exemption to the seller absent valid documentation.

Good Faith Acceptance Standard A seller's acceptance of a certificate "in good faith" means accepting it without actual knowledge, or reason to know, that the sale is not for a qualifying exempt purpose (see Reg-1-013.04E). If the certificate is incomplete, clearly faulty, or appears fraudulent, a retailer may be liable despite receipt. The regulation requires good faith both in form and substance: "reason to know" includes circumstances where details provided do not match the transaction or the purchaser’s status.

Certificate Timing Requirements A properly completed certificate received at or before the time of sale, or within 90 days after, conclusively establishes the exempt nature of the transaction for the seller. If the Department requests substantiation (typically as part of an audit), a certificate received in good faith within 120 days after the request still relieves the retailer of liability (Reg-1-013.07C). Certificates provided after these deadlines do not automatically provide protection, but DOR may waive this requirement at its discretion if the retailer can otherwise prove the exemption (Reg-1-013.07B).

Required Certificate Elements and Forms Nebraska uses Form 13 for resale and exempt sales; a valid certificate must include the purchaser and seller’s name, purchaser's type of business, sales tax ID number or other basis for exemption, signature (or SSUTA-compliant alternative), and date (Reg-1-013.06). Blanket certificates are permitted and remain valid until revoked in writing (Reg-1-013.06D).

Recordkeeping Obligations Retailers must maintain certificates as part of their sales tax records and produce them upon DOR request, with a minimum retention period of three years (Reg-1-013.08).

Audit Trends and Pitfalls Regulatory authority does not directly enumerate audit pitfalls, but common areas for DOR adjustment include: failure to obtain certificates within regulatory timeframes, incomplete or inaccurate certificates (missing fields, unverifiable ID), acceptance of certificates when the retailer knows or should know the sale isn't exempt, and failure to retain the actual certificate for inspection. These are consistent with both the regulation’s definition of good faith and typical audit findings reported in practice. Note: The regulation is the controlling authority; specific audit practices may reflect observed DOR enforcement but are not spelled out verbatim in published guidance.

Source: 316 Neb. Admin. Code ch. 1, § 013 (Reg-1-013) Source: Neb. Rev. Stat. § 77-2706

Not yet human confirmed.

Nebraska exempts the sale, lease, or rental of manufacturing machinery and equipment (MME) when purchased by a manufacturer for use in manufacturing, governed by Neb. Rev. Stat. § 77-2701.47 and further addressed in regulation and case law.

Statutory authority and Department regulation

Neb. Rev. Stat. § 77-2701.47 broadly defines MME qualifying for exemption. For many years, the Department of Revenue enforced a "more than 50% use" requirement via 316 Neb. Admin. Code ch. 1, § 107.02A—machinery or equipment had to be used over half of the time in manufacturing to be exempt.

Judicial rejection of the 'more than 50%' test

In Kerford Limestone Co. v. Nebraska Department of Revenue, 287 Neb. 653 (2014), the Nebraska Supreme Court squarely rejected the Department’s regulatory interpretation. The court held that under the plain language of the statute, “any amount of use in manufacturing is sufficient to bring machinery or equipment purchased by a ‘person’ engaged in the business of manufacturing within the definition of manufacturing machinery and equipment.” The decision directly invalidated the Department's 50% threshold and stated the agency had no authority to impose requirements inconsistent with the statute.

Following Kerford and the related case Nucor Steel v. Nebraska Dept. of Revenue, 294 Neb. 555 (2016), the Department updated Reg-1-107 by marking § 107.02, .02A, .02C, and .07 as "not being applied," with the regulation “undergoing review for amendment or repeal.” These provisions cannot presently be enforced, and the Department’s audits and written guidance since 2014 reflect this change.

Current practical risk to taxpayers

As of June 2026, there is little risk to taxpayers who claim the exemption based solely on the Supreme Court standard: the Department no longer applies the regulatory “more than 50%” use rule, and the only remaining area of practical friction is the correct classification of manufacturing machinery and equipment (not the quantum of manufacturing use). Claimants should, however, ensure robust documentation that use in manufacturing did occur, as the factual record remains subject to audit. This summary infers audit approach from the Department’s published written guidance and regulatory footers, not from a specific new administrative release.

Summary of controlling authority:

• Source: Neb. Rev. Stat. § 77-2701.47
• Source: Kerford Limestone Co. v. Nebraska Dept. of Revenue, 287 Neb. 653 (2014)
• Source: 316 Neb. Admin. Code ch. 1, § 107—regulatory status notice

Not yet human confirmed — all authority directly cited.

Nebraska assigns sales and use tax return filing frequency based on the taxpayer’s annual sales or use tax liability as determined by the Department of Revenue. The filing frequency determines both how often returns must be submitted and the due dates for payment and reporting.

Filing Frequency and Thresholds (Sales and Use Tax)

• Annual: If the yearly tax liability is less than $900, returns are filed annually. These annual returns are due by January 20 of the following year.
• Quarterly: If the annual liability is at least $900 but less than $3,000, returns are filed quarterly. Quarterly filings are due by the 20th day of the month following the end of each calendar quarter (April 20, July 20, October 20, and January 20).
• Monthly: If the annual liability is $3,000 or more, returns are filed monthly. Monthly filings are due by the 20th day of the month following the reporting period.

For non-permit holders who owe use tax (such as those filing Forms 2 or 3), the same thresholds and filing schedule apply.

Due Date and Timeliness Returns and tax payments are considered timely if they are received, delivered, or officially postmarked on or before the 20th day after the end of the reporting period. If the due date falls on a Saturday, Sunday, or legal holiday, the next business day is considered timely.

Material update — Electronic filing and payment mandate (effective June 2026 returns) Beginning with the June 2026 sales and use tax return (Form 10, due July 20, 2026), the Nebraska Department of Revenue requires all businesses (and preparers) to file and pay both state and local sales and use taxes electronically. This requirement applies to all taxpayers, regardless of liability, and manual (paper) forms will no longer be accepted. Returns and payments must be submitted using the Department’s online system or other authorized e-file methods. The DOR will not send paper forms after the May 2026 period.

Businesses that cannot comply due to lack of access or other valid reasons may apply for a hardship waiver, but these are granted only rarely and at the Department's discretion.

Source: Reg-1-010.02, Reg-1-010.03B, Reg-1-010.06, Reg-1-002.09, Nebraska DOR Regulations Source: Nebraska DOR Sales Tax Information Guide 4-787 Source: Nebraska DOR Use Tax Information Guide Source: Nebraska DOR: Important Information on Required Electronic Filing and Payment (March 19, 2026)

Nebraska law imposes sales tax on sales of prewritten computer software, whether delivered in tangible form or by electronic means, and on certain digital products defined in the statute and accompanying regulations. The treatment of hybrid subscriptions and bundled digital offerings—those containing both Software-as-a-Service (SaaS, accessed remotely via a provider's infrastructure) and components involving downloaded or installed software—requires careful parsing of authority, as the Department of Revenue (DOR) does not provide specific allocation formulas or adopt a “true object” test for these situations as of June 2026.

Underlying statutory and regulatory rule:

• All prewritten computer software is taxable regardless of method of delivery, including downloads or access codes. (Neb. Rev. Stat. § 77‑2701.16(4); Reg-1-088.01.)
• Remote access to software, where the customer does not receive a copy or download, is not explicitly addressed in statute but is generally understood (per DOR Information Guide 6-415) not to be subject to tax if the customer gains no possession or license to install.

Bundled transaction rules and lack of "true object"/allocation guidance:

• Nebraska regulation provides that when taxable and nontaxable items are sold for a single, non-itemized price, and the taxable portion is not observable from the invoice or books, the entire charge is presumed taxable (Reg-1-108.01–.03). Sellers may avoid this result by reasonably identifying and separately stating the nontaxable portion of a bundled charge at or before the time of sale (Reg-1-108.02).
• The Department does not publish a "true object" test, nor does it prescribe any percentage allocation method for dividing tax for hybrid SaaS/download bundles. There is no public audit manual or FAQ on apportionment or mixed SaaS/downloaded-software charges.

Audit posture and risk:

• In the absence of Department allocation guidance, sellers of hybrid offerings are at risk of full taxability on the entire charge if the taxable (software download/transfer) and nontaxable (remote SaaS access) charges are not separately itemized and documented.
• Practitioners should review contracts and invoices to clearly break out nontaxable SaaS access from taxable software transfers. If not separately stated, expect the DOR to treat the gross charge as taxable on audit.

Summary: As of June 2026, Nebraska does not provide a statutory “true object” test, allocation formula, or DOR-published safe harbor for hybrid SaaS/digital bundles. The burden is on the taxpayer to segregate charges and prove nontaxable portions at sale—otherwise, expect the entire amount to be subject to sales tax.

Source: Neb. Rev. Stat. § 77-2701.16; 316 Neb. Admin. Code ch. 1, Reg-1-088; 316 Neb. Admin. Code ch. 1, Reg-1-108; Nebraska DOR Information Guide 6-415

Nebraska allows a credit against its use tax for sales, use, excise, or similar tax properly paid to another state (or its political subdivision) for property or services brought into Nebraska. The statutory framework and corresponding regulations lay out specific terms as to the application, rate calculation, limitations, and documentation required for this credit claim.

Statutory credit and rate limitation Under Neb. Rev. Stat. § 77-2704.31, when a taxpayer brings property or services into Nebraska on which another state’s legally imposed sales or use tax has been paid, Nebraska permits a nonrefundable credit against the use tax due. The amount of the credit is limited to the lesser of: (1) the Nebraska state and local use tax otherwise due, or (2) the amount of sales or use tax actually paid to the other jurisdiction. If the foreign tax is less than the total Nebraska tax due, the difference must be paid to Nebraska. If the foreign tax equals or exceeds the Nebraska liability, no Nebraska use tax is due, but any excess is not refunded or carried forward.

Additionally, the statute provides a reciprocity requirement: Nebraska only allows a credit (or exemption) for property purchased in another state and later brought into Nebraska if that other state offers reciprocal exclusion or exemption of similar property purchased in Nebraska and brought into that state.

Procedural requirements and documentation Nebraska regulation Reg-1-071 (Neb. Admin. Code, Title 316, Ch. 1, § 071) clarifies that:

• The credit is applied first to the state use tax, then to any local use tax due.
• Only tax that was properly due and legally paid to the other state qualifies. This excludes refunded tax, taxes not legally imposed, or tax paid in error.
• The taxpayer must be able to substantiate payment and provide proof if requested by the Nebraska Department of Revenue. Suitable documentation usually includes receipts, invoices, or tax returns showing the payment of tax to the foreign jurisdiction.
• The regulation details exclusions for tax paid on property sourced to direct mail ads at the shipping point under certain conditions, and other nuanced exceptions (see Reg-1-071 for specifics).

No Nebraska refund for excess payment If the tax paid to the other state exceeds the total Nebraska use tax that would otherwise be due, the taxpayer is not given a refund or any credit for future Nebraska taxes: the credit can only bring the Nebraska liability to zero, never below.

Source: Neb. Rev. Stat. § 77-2704.31; 316 Neb. Admin. Code ch. 1, § 071 (Reg-1-071)

Nebraska accepts several types of exemption certificates for sales tax exemption claims, including the Streamlined Sales and Use Tax Agreement (SSUTA) Exemption Certificate and other out-of-state multistate resale or exemption certificates, provided specific requirements are met.

Accepted certificates Nebraska recognizes the following documentation as valid for establishing a purchaser’s claim that a transaction is exempt as a sale for resale or other qualifying exempt sale:

• The Nebraska Resale or Exempt Sale Certificate (Form 13), whether paper or electronic.
• Substitutes for Form 13 previously authorized by Nebraska, including those provided electronically.
• The Multistate Tax Commission Uniform Sales and Use Tax Certificate.
• Any certificate authorized under the Streamlined Sales and Use Tax Agreement (SSUTA), i.e., the Streamlined Sales Tax Exemption Certificate.

A properly completed certificate must be accepted if it is taken in good faith at or before the time of sale, within 90 days after the sale, or (if requested by the Department of Revenue) within 120 days after such a request from the Department. The certificate must include all information required by regulation, including the sale type, identities of seller and purchaser, and a signature or other form of authorized verification.

Good faith acceptance and liability protection A retailer who obtains a properly completed exemption certificate in good faith is shielded from liability for sales tax on the transaction, even if it is later determined that the sale did not qualify for exemption. Good faith acceptance means the retailer has no actual knowledge, at the time of the transaction or acceptance of the certificate, that the sale is not for resale/exempt use.

Cross-jurisdictional purchasers For purchasers not registered in Nebraska, out-of-state sales tax registration or permit information may be provided if the certificate is otherwise properly completed. The regulation affirms that out-of-state businesses may use an SSUTA certificate or Multistate Tax Commission certificate for exemption purposes when operating within Nebraska, as long as the transaction otherwise qualifies as exempt.

Source: 316 Neb. Admin. Code ch. 1, § 013 (Reg-1-013)

Not yet human confirmed.

Nebraska cities and counties may impose local sales and use taxes by voter approval, in addition to the statewide rate, on transactions sourced to those jurisdictions.

Local tax authorization and rates Municipalities (cities and villages) may adopt a local sales and use tax under the Local Option Revenue Act. Permissible rates for cities are 0.5%, 1%, 1.5%, and, in specific circumstances, up to 2%. Counties may impose local sales and use taxes at rates of 0.5%, 1%, or 1.5% pursuant to county authority under Neb. Rev. Stat. §§ 13-319 to 13-326. Local sales and use taxes must be enacted through a vote of the people within the locality, and any new, amended, or repealed local tax must be certified to the Nebraska Department of Revenue (DOR) before implementation.

Material update: Edgar local rate increase effective July 1, 2026 Per official notice, the city of Edgar increased its local sales and use tax rate from 1% to 1.5% effective July 1, 2026. This change is reflected in the Nebraska Department of Revenue’s schedule for the third quarter of 2026. Practitioners should reference the quarterly DOR schedule for the up-to-date list of all current jurisdictions and combined rates.

Tax base and sourcing rules Local sales and use taxes apply to the same base as the Nebraska state sales tax, unless expressly inconsistent. Retail sales are sourced per Neb. Rev. Stat. § 77-2703.01 and DOR regulations, typically to the destination of the property or service (i.e., where the purchaser receives the tangible personal property or service), not merely where the seller is located. This is most relevant for remote sellers and sales delivered to Nebraska addresses: the combined state and local rate at the delivery or use location applies.

Timing and effective dates After approval, the effective date for new, changed, or repealed local tax rates is the first day of the calendar quarter at least 120 days after the DOR receives proper certification of the authorizing ordinance/resolution and, if required, election results. The DOR maintains and publishes a quarterly updated schedule showing all current local rates and jurisdictions.

Official rate schedule and lookup Practitioners should rely on the DOR’s published “Local Sales and Use Tax Rates” schedule (updated quarterly) for authoritative local tax rate information by jurisdiction and FIPS code. The schedule is available on the Department of Revenue’s official site and is definitive for reporting purposes. As of July 2026, the most recent local change is Edgar’s increase to 1.5% (effective July 1, 2026).

Source: 316 Neb. Admin. Code ch. 9 (Local Sales and Use Tax regulations) Source: Neb. Rev. Stat. §§ 13-319 to 13-326 Source: Nebraska DOR: Local Sales and Use Tax Rates (July 1, 2026)