Sales Tax and Reverse Sales Tax Calculator Nebraska
(Tax Year 2023: Last Updated on May 28, 2023)
Nebraska levies a 5.5% state general sales tax. The state of Nebraska permits counties, cities, and/or municipalities to charge up to 2.5% local sales tax. You can figure out Nebraska's regular and reverse sales taxes with the use of this calculator. The only information required to acquire answers is the amount before taxes, the amount after taxes, and the tax rate.
- 5.5%
- 6%
- 6.5%
- 7%
- 7.5%
- Amount Before Tax ${{amountBeforeTax}}
- Sales Tax Rate {{SalesTaxRate}}%
- Amount Of Taxes ${{AmountOfTaxes}}
- Amount After Taxes ${{AmountAfterTaxes}}
Nauman is a Digital Marketing Specialist and owner of several online tools like DrEmployee. He believes in helping common people by providing a free online solution to day to day tasks. This project is one of them to offer free financial tools and tips.
Nebraska – NE Sales Tax Calculator: User Guide
Nebraska is a state located in the Midwestern region of the United States, enclosing the Sandhills' towering dunes, the prairies of the Great Plains, and the towering dunes of the Sandhills.
The state offers an attractive job market, higher incomes, Quality life, cheap housing prices, and plenty of business opportunities, making it one of the best places to live in the United States.
Considering to start, move or expand your business to Nebraska soon? Well, you should learn to deal with NE Sales Tax.
Our experts have invested days and nights to bring all the necessary information of the Nebraska Sales Tax and a handy Sales Tax Calculator to make your decision a lot easier and save you cost to hire people to do taxes.
So let's explore!
Nebraska Sales Tax Facts:
- The general sales tax rate levied on the state level in Nebraska is 5.5%. Additionally, many counties levy local sales tax ranging from 0% to 0.5%. Moreover, Nebraska's cities and/or municipalities are also allowed to collect city sales tax of up to 2%.
- The maximum possible combined sales tax rate of 8% is charged in cities like Beatrice, Nebraska.
- The lowest possible combined sales tax rate of 5.5% is charged in cities like Abie, Nebraska.
- Nebraska's sales tax rate is lower than 50% of the states in America.
- The average combined sales tax rate in Nebraska is 6.03%.
- Prepared food and drinks are charged with an additional special sales tax rate of 2.5% on the state's capital, Omaha, raising the combined sales tax to 9.5%.
- Groceries and raw foods, medicine, medical equipment, and newspapers are exempted from Nebraska's sales tax. However, electronics, clothing, home decorations, and toys are all subject to sales tax.
- Services including delivery charges, satellite, and cable TV, detective services, pest control, computer software, hotel accommodations, telephone services, vehicle towing or painting, and security services are subjected to Nebraska Sales Tax.
- Items for resale, improvement, or as raw materials by Individuals and companies can avail sales tax exemption using Nebraska Sales Tax Exemption Form.
- Items bought without paying taxes while traveling, over the internet, or transported into Nebraska from a state with a lower sales tax rate, are supposed to be subjected to Nebraska Use Tax, which is charged at the rate of 5.5%. Additionally, Local Use tax may also apply depending on the city or county where the product is used.
How to calculate Sales Tax in Nebraska?
Businesses and Sellers involved in the sale of most tangible personal property (with a few exceptions) and some services, and having Nexus in Nebraska are required to register for Nebraska Sales tax. They are required to collect, manage, and remit it to the Nebraska Department of Revenue while staying in compliance with state laws and avoid penalties and interest.
The sales tax determined on four factors:
- Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
- Out of State Seller's Eligibility: Out of State Sellers are only required to register, collect, and remit the sales tax to the state's authorities if it falls under the criteria provided by the state.
- Location and Products or Services: The sales tax rate varies from product to product and location to location. You must check the sales tax rate applicable to your product according to the product category, county, and city in Nebraska.
- Exemptions: Almost all goods are eligible for sales tax regulation—however, Groceries and raw foods, medicine, medical equipment, and newspapers, along with some other products that are exempted under Nebraska Law. So you should check with the Nebraska state government as to which goods and services sold in Nebraska are subject to sales tax.
To calculate Sales Tax in Nebraska, follow the steps below:
Step 1 – Determine your Nexus:
As a business owner, you are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the Nebraska State. And to determine your Nexus in Nebraska, you must have any of the following:
- Maintaining a physical location in Nebraska, such as office, or other business locations.
- A permeant or temporary employee, contractors, or independent sales representative working for you in Nebraska.
- Having an inventory or ownership of goods in a warehouse, storage facility, etc. In NE
- Deriving receipts from leased or rental property
Step 2 – Determine the eligibility to collect sales tax as an out-of-state seller:
Out of State Seller is eligible to register, collect and remit sales tax under Nebraska Law, if:
- Have a Physical location like office or store in Nebraska
- Storing property for sale in the state
- Making sales through marketplace sellers in Nebraska
- A marketing Affiliate
- Having a temporary stall to sell products in trade shows, festivals, and fair booths.
- Having an Economic Nexus where remote sellers, who make more than $100,000 in sales or more than 200 transactions in Nebraska
Step 3 – Determine the Sales Tax Rate:
Once you have determined that your Nexus is with Nebraska, next is to deduce the Sales Tax rate (State + County + City) applicable to your product, for which you can refer the tables below:
| City | State Rate | County Rate | Total Sales Tax 2023 |
|---|---|---|---|
| Ainsworth | 5.50% | 1.50% | 7.00% |
| Albion | 5.50% | 1.50% | 7.00% |
| Alliance | 5.50% | 1.50% | 7.00% |
| Arlington | 5.50% | 1.50% | 7.00% |
| Ashland | 5.50% | 1.50% | 7.00% |
| Atkinson | 5.50% | 1.50% | 7.00% |
| Auburn | 5.50% | 1.00% | 6.50% |
| Aurora | 5.50% | 0.00% | 5.50% |
| Beatrice | 5.50% | 2.50% | 8.00% |
| Bellevue | 5.50% | 1.50% | 7.00% |
| Bennington | 5.50% | 1.50% | 7.00% |
| Blair | 5.50% | 1.50% | 7.00% |
| Bridgeport | 5.50% | 1.00% | 6.50% |
| Broken Bow | 5.50% | 1.50% | 7.00% |
| Burwell | 5.50% | 1.50% | 7.00% |
| Central City | 5.50% | 1.50% | 7.00% |
| Chadron | 5.50% | 2.00% | 7.50% |
| Columbus | 5.50% | 1.50% | 7.00% |
| Cozad | 5.50% | 1.50% | 7.00% |
| Creighton | 5.50% | 1.00% | 6.50% |
| Crete | 5.50% | 2.00% | 7.50% |
| Dakota City | 5.50% | 1.00% | 6.50% |
| David City | 5.50% | 2.00% | 7.50% |
| Fairbury | 5.50% | 2.00% | 7.50% |
| Falls City | 5.50% | 1.50% | 7.00% |
| Fremont | 5.50% | 1.50% | 7.00% |
| Friend | 5.50% | 1.00% | 6.50% |
| Fullerton | 5.50% | 2.00% | 7.50% |
| Geneva | 5.50% | 2.00% | 7.50% |
| Gering | 5.50% | 1.50% | 7.00% |
| Gibbon | 5.50% | 1.00% | 6.50% |
| Gordon | 5.50% | 1.00% | 6.50% |
| Gothenburg | 5.50% | 1.50% | 7.00% |
| Grand Island | 5.50% | 2.00% | 7.50% |
| Grant | 5.50% | 1.00% | 6.50% |
| Gretna | 5.50% | 1.50% | 7.00% |
| Hartington | 5.50% | 1.00% | 6.50% |
| Hastings | 5.50% | 1.50% | 7.00% |
| Hebron | 5.50% | 1.00% | 6.50% |
| Hickman | 5.50% | 1.50% | 7.00% |
| Holdrege | 5.50% | 1.50% | 7.00% |
| Imperial | 5.50% | 1.00% | 6.50% |
| Kearney | 5.50% | 1.50% | 7.00% |
| Kimball | 5.50% | 1.50% | 7.00% |
| La Vista | 5.50% | 2.00% | 7.50% |
| Laurel | 5.50% | 1.00% | 6.50% |
| Lexington | 5.50% | 1.50% | 7.00% |
| Lincoln | 5.50% | 1.75% | 7.25% |
| Louisville | 5.50% | 1.50% | 7.00% |
| Madison | 5.50% | 1.50% | 7.00% |
| McCook | 5.50% | 1.50% | 7.00% |
| Milford | 5.50% | 1.00% | 6.50% |
| Minden | 5.50% | 2.00% | 7.50% |
| Mitchell | 5.50% | 1.50% | 7.00% |
| Nebraska City | 5.50% | 2.00% | 7.50% |
| Neligh | 5.50% | 1.00% | 6.50% |
| Norfolk | 5.50% | 1.50% | 7.00% |
| North Bend | 5.50% | 1.50% | 7.00% |
| North Platte | 5.50% | 1.50% | 7.00% |
| Oakland | 5.50% | 1.50% | 7.00% |
| Ogallala | 5.50% | 1.50% | 7.00% |
| Omaha | 5.50% | 1.50% | 7.00% |
| O'Neill | 5.50% | 1.50% | 7.00% |
| Ord | 5.50% | 2.00% | 7.50% |
| Papillion | 5.50% | 2.00% | 7.50% |
| Pender | 5.50% | 1.50% | 7.00% |
| Pierce | 5.50% | 1.00% | 6.50% |
| Plattsmouth | 5.50% | 1.50% | 7.00% |
| Ralston | 5.50% | 1.50% | 7.00% |
| Ravenna | 5.50% | 1.50% | 7.00% |
| Red Cloud | 5.50% | 1.50% | 7.00% |
| Schuyler | 5.50% | 1.50% | 7.00% |
| Scottsbluff | 5.50% | 1.50% | 7.00% |
| Seward | 5.50% | 1.50% | 7.00% |
| Sidney | 5.50% | 2.00% | 7.50% |
| South Sioux City | 5.50% | 1.50% | 7.00% |
| Springfield | 5.50% | 1.50% | 7.00% |
| St. Paul | 5.50% | 1.00% | 6.50% |
| Stanton | 5.50% | 1.50% | 7.00% |
| Stromsburg | 5.50% | 1.50% | 7.00% |
| Superior | 5.50% | 1.00% | 6.50% |
| Sutherland | 5.50% | 0.00% | 5.50% |
| Sutton | 5.50% | 1.50% | 7.00% |
| Syracuse | 5.50% | 1.00% | 6.50% |
| Tecumseh | 5.50% | 1.50% | 7.00% |
| Tekamah | 5.50% | 2.00% | 7.50% |
| Valentine | 5.50% | 1.50% | 7.00% |
| Valley | 5.50% | 1.50% | 7.00% |
| Wahoo | 5.50% | 2.00% | 7.50% |
| Wakefield | 5.50% | 1.00% | 6.50% |
| Waverly | 5.50% | 1.00% | 6.50% |
| Wayne | 5.50% | 1.50% | 7.00% |
| Weeping Water | 5.50% | 1.50% | 7.00% |
| West Point | 5.50% | 1.50% | 7.00% |
| Wilber | 5.50% | 1.50% | 7.00% |
| Wisner | 5.50% | 2.00% | 7.50% |
| Wood River | 5.50% | 1.50% | 7.00% |
| Wymore | 5.50% | 2.00% | 7.50% |
| York | 5.50% | 2.00% | 7.50% |
| Yutan | 5.50% | 0.00% | 5.50% |
Step 4 – Calculate Sales Tax:
After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.
Example # 1:
For instance, you sell a Wall Paint on your store in Beatrice, Nebraska, having a net cost of $120. The amount of Sales Tax that you have to pay on the Wall Paint would be:
Manual Method:
Net Price (amount before Tax) of a Wall Paint: $120
Total Sales Tax rate: 2.00% (Beatrice) + 0.50% (Gage County) + 5.50% (Nebraska State) = 8.00%
Total Sales Tax amount = $120 x 8.00% = $9.6
Gross Price (Amount after Tax) = 120 + 9.6 = $129.6
So the Sales Tax amount charged on the Wall Paint would be $9.6, raising the gross cost of it to $129.6.
Using our Sales Tax Calculator:
All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:
- Input the $120 Net Price of a Wall Paint as Amount Before Tax
- Input or select 00% of the combined Sales Tax rate on the Tax Rate menu.
Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:
Reverse Sales Tax Calculation
In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.
But there are also instances when you are required to deduce how much Sales tax you have actually paid on a product in Nebraska.
This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Nebraska Sales Tax Calculator can perform this calculation like a Pro.
Example:
The gross cost (amount after-tax) of a Paint Brush is $5, which you sell on your store in Norfolk, Nebraska. If you want to deduce the amount of sales tax you have actually paid on it and the net cost (amount before tax) of a Paint Brush, you can follow the steps below:
Gross Price (Amount after Tax) of Paint Brush: $5
Total Sales Tax rate: 1.50% (Norfolk) + 0.00% (Madison County) + 5.50% (Nebraska State) = 7.00%
Manual Method:
Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]
5 = [Net Price x ((7/100) + 1)]
5 = Net Price x 1.07
$4.7 = Net Price
So the original Price (net price) of the Paint Brush would be $4.7.
Using our Sales Tax Calculator:
You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:
- Input the $5 Gross Price of Paint Brush as Amount after Tax
- Input or select 7.00% of combined Sales Tax Rate on the Tax Rate
Our calculator will automatically calculate the result and represents it in 3 different forms.
FAQs
Answer: 5.5% of Sales Tax is charged on all types of vehicles in Nebraska. Moreover, the car may also be subjected to other taxes and charges, including local sales tax, registration, title, and plate fees.
Answer: The sales tax rate in Nebraska is 5.5% levied on the state level. Additionally, many counties levy local sales tax ranging from 0% to 0.5%. Moreover, Cities and/or municipalities of Nebraska are also allowed to collect city sales tax of up to 2%.
Answer: The sales of most tangible personal property, as well as some services, including electronics, clothing, home decorations, and toys, are all subject to sales tax in Nebraska.
Answer: Groceries and raw foods, medicine, medical equipment, and newspapers are exempted from sales tax in Nebraska
Answer: 7.00% of combined sales tax is charged in Omaha, Nebraska, which comprises 1.50% of Omaha City Sales Tax and 5.50% of Nebraska State Sales Tax.