The Nebraska (NE) state sales tax rate is currently 5.5%. Depending on local municipalities, the total tax rate can be as high as 7% but food and prescription drugs are exempt.

Nebraska is listed in Kiplinger’s 2011 10 Tax-Unfriendly States for Retirees. Besides providing no tax breaks for Social Security benefits and military pensions, real estate is assessed at 100% market value. Food and prescription drugs are exempt from state sales tax.

All sellers making retail sales of taxable goods or services in Nebraska are required to register with the state and collect and remit sales tax. As Nebraska is a Streamlined Sales Tax state, out-of-state businesses without a sales tax obligation are encouraged to register for sales tax purposes.

How to Register

Businesses that have employees, engage in retail sales, rent or lease tangible personal property, or provide taxable services are required to register with the Nebraska Department of Revenue. Registration is through Nebraska One-Stop Business Registration Information or submission of a Nebraska Tax Application. Registration may also occur “through an alternative method as authorized under the Streamlined Sales Tax Agreement.” Additional information is available at Starting a business in Nebraska.

How to File and Pay

Electronic filing is preferred, though paper filing is allowed. The Nebraska Department of Revenue website provides sales and use tax forms. There are several electronic payment options.

Zero returns (no sales tax owed) must also be filed by the due date.

Deadlines

Nebraska state and local sales tax returns and payments are due by the 20th of each month following the reporting period. See the Nebraska Tax Calendar for additional dates.

Avalara Sales and Use Tax Products for Nebraska

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

Nebraska Department of Revenue