Nebraska Sales Tax Calculator

How Nebraska sales tax is built

Nebraska charges a 5.5% state sales and use tax on retail sales. Cities and other local governments can add local option sales tax of between 0.5% and 2%. The state rate never changes from place to place, so the difference between two Nebraska receipts is always the local part. On average that local part is 1.48%, giving a typical combined rate of 6.98%. The highest combined rate is 7.5%.

Local rates do change, and the Department of Revenue announces each change before it takes effect. For example, from January 1, 2027 Winside will start charging a 1% local tax, and Eagle and Hay Springs will rise from 1% to 1.5%. Use a current lookup rather than an old receipt.

How to find the exact rate for a Nebraska address

The Nebraska Department of Revenue’s Sales Tax Rate Finder (gis.ne.gov/rev/SalesTaxFinder) shows the state and local rate for a specific address on a map. This matters because city limits and ZIP codes do not line up. A rural address with a town’s ZIP code may sit outside the city and pay only the state rate.

• Search the street address, not just the ZIP code.
• For a delivery, the rate is the one where you receive the item, not where the store is.
• Businesses can download rate and boundary files from the Department of Revenue for point-of-sale systems.
• Enter the combined rate you find as a custom rate in the calculator above.

What is exempt: groceries yes, clothing no

Food and food ingredients are exempt from Nebraska sales tax, so a normal grocery run is untaxed. Prepared food and food sold through vending machines are taxable. A rotisserie chicken from the deli counter or a sandwich made to order is taxed; a bag of flour or a gallon of milk is not.

Prescription drugs and insulin are exempt. So are durable medical equipment, home medical supplies, mobility-enhancing equipment, prosthetic devices, oxygen and oxygen equipment sold for a patient under a prescription. Over-the-counter drugs are taxable, even if your doctor recommends them, because the exemption depends on the product needing a prescription.

Clothing, shoes and school supplies are taxed at the full rate, and Nebraska has no sales tax holiday. A $60 pair of shoes costs the same tax in August as in February.

Buying a car in Nebraska: the tax is paid at the county, not the dealer

The sales tax on a vehicle in Nebraska is owed by the buyer and collected when you register, not by the dealership. Under Department of Revenue Regulation 1-020, the county treasurer (or the Department of Motor Vehicles) collects state and local sales tax when you register the vehicle. The dealer is not allowed to collect it. Instead, the dealer writes the tax amount on the invoice and gives you a Form 6 (Nebraska Sales/Use Tax and Tire Fee Statement).

Tax is calculated on the sale price minus any trade-in allowance and any rebates used to lower the price. If you keep the vehicle in Nebraska but do not register it within 30 days of buying it, the tax is due right away. Late payment adds interest from day 30 and a $5 penalty.

Worked example: a $32,000 truck with an $8,000 trade-in and a $1,000 rebate is taxed on $23,000. The state’s 5.5% share is $1,265.00. At the 7.5% top combined rate the total would be $1,725.00. Without the trade-in credit you would pay tax on $31,000.

A mixed Nebraska receipt, line by line

Nebraska receipts often mix taxable and exempt items, so applying one rate to the whole total overstates the tax. Take a supermarket trip at the 6.98% average combined rate: $120 of groceries, an $18 hot deli meal and $14 of over-the-counter allergy tablets.

• Groceries (food and food ingredients): exempt, $0.00.
• Hot deli meal (prepared food): $1.26.
• Allergy tablets (no prescription needed, so taxable): $0.98.
• Correct total tax: $2.24. Taxing the whole $152 would wrongly give $10.61.

How Nebraska compares with surrounding states

Nebraska’s 5.5% state rate is in the middle of its region. Iowa and South Dakota charge slightly more or less at the state level, while Colorado’s state rate is low but its local add-ons are high. These averages show what a typical $1,000 taxable purchase costs in each state.

Use tax: online and out-of-state purchases

If a seller does not charge Nebraska sales tax on something you use in Nebraska, you owe use tax at the same state and local rate instead. Most large online retailers now collect Nebraska tax at checkout. Use tax mostly comes up with small out-of-state sellers, catalog orders and items bought in a state with a lower rate or no sales tax.

Individuals report it on the Nebraska income tax return. The 2026 draft Form 1040N has a line for “use tax due on taxable purchases where applicable sales tax was not collected”, where you add the state and local amounts. Example: a $1,200 camera bought from an out-of-state seller that charged no tax, used at an address with a 6.98% combined rate, means $83.76 of use tax.