What is the sales tax rate in Nebraska?

The Nebraska state sales tax rate is 5.500%. Local governments can add their own sales taxes ranging from 0.5% to 2%, making total rates vary by location. For example, Omaha has a total rate of 7%, and Lincoln has 7.25%.

Does Nebraska have local sales tax?

Yes, Nebraska allows cities and counties to impose local sales taxes on top of the 5.500% state rate. Local taxes can be 0.5%, 1%, 1.5%, 1.75%, or 2%. These local taxes are set by individual city or county governments.

Are groceries taxed in Nebraska?

Most groceries are exempt from sales tax in Nebraska. However, prepared food intended for immediate consumption, candy, dietary supplements, and soft drinks are taxable at the full rate. Unprepared food for home consumption is tax-free.

Is clothing taxed in Nebraska?

Yes, all clothing and footwear are taxable in Nebraska at the full rate (5.500% state rate plus applicable local taxes). Nebraska does not have a clothing exemption or regular sales tax holidays for apparel.

Are prescription drugs taxed in Nebraska?

No, prescription drugs are exempt from sales tax in Nebraska. Both prescription and over-the-counter medications are exempt when dispensed by a pharmacy.

What is a Good Life District (GLD) in Nebraska?

Good Life Districts (GLDs) are special economic development zones designated by the state. As of July 1, 2024, purchases within GLD areas that are also within city boundaries are taxed at a reduced state rate of 2.75% instead of the standard 5.5% rate, plus applicable local taxes.

Do I pay sales tax on used cars in Nebraska?

Yes, Nebraska charges sales tax on motor vehicle purchases, whether new or used. The rate includes both the 5.500% state rate and applicable local taxes. The tax is calculated on the purchase price and must be paid when you register the vehicle.

When did Nebraska adopt its sales tax?

Nebraska first adopted a sales tax in 1967 at a rate of 2.5%. This followed a voter-approved constitutional amendment in 1966 that abolished the state property tax. The rate has changed 13 times since 1967 and now stands at 5.500%.

Sales Tax Calculator

Nebraska Sales Tax
Calculator

Calculate Nebraska sales tax instantly for any city. Enter any amount to see the exact tax and total including local taxes.

State Rate

5.500%

+ local taxes (0.5-2%)

Select City

Amount before tax

About Nebraska Sales Tax

State rate: 5.500%

Local rate in Douglas (part Sarpy) County: 1.500%

Combined rate in Omaha: 7.000%

GLD – Avenue One

Businesses in this district charge an additional tax, bringing the total rate to NaN% instead of the standard 7.000%.

State Rate

5.500%

Local Tax

0.5-2%

Groceries

Exempt*

Since 1967

Sarpy County

7.500%

Standard Rate

24,000

City	County	Standard Rate	Special District	Population
Omaha	Douglas (part Sarpy)	7.000%	Special District	483,000
Lincoln	Lancaster	7.250%	Standard Rate	295,000
Bellevue	Sarpy	7.000%	Special District	64,000
Grand Island	Hall	7.500%	Special District	52,000
Kearney	Buffalo	7.000%	Special District	34,000
Fremont	Dodge	7.500%	Standard Rate	27,600
Norfolk	Madison	7.000%	Standard Rate	26,100
Hastings	Adams	7.000%	Standard Rate	24,700
Columbus	Platte	7.500%	Standard Rate	24,600
Papillion	Sarpy	7.500%	Standard Rate	24,000
North Platte	Lincoln	7.500%	Standard Rate	23,500
La Vista	Sarpy	7.500%	Standard Rate	17,000
Scottsbluff	Scotts Bluff	7.000%	Standard Rate	15,000
South Sioux City	Dakota	7.000%	Standard Rate	14,700
Beatrice	Gage	7.500%	Standard Rate	12,500
Lexington	Dawson	7.000%	Standard Rate	10,100
Gering	Scotts Bluff	7.500%	Standard Rate	8,600
Alliance	Box Butte	7.000%	Standard Rate	8,100
York	York	7.500%	Standard Rate	8,000
Blair	Washington	7.000%	Standard Rate	8,000
Seward	Seward	7.500%	Standard Rate	7,600
McCook	Red Willow	7.500%	Standard Rate	7,400
Ralston	Douglas	7.000%	Standard Rate	7,300
Nebraska City	Otoe	7.000%	Standard Rate	7,200
Crete	Saline	7.500%	Standard Rate	7,000
Plattsmouth	Cass	7.000%	Standard Rate	6,500
Schuyler	Colfax	7.000%	Standard Rate	6,400
Sidney	Cheyenne	7.500%	Standard Rate	6,300
Gretna	Sarpy	7.500%	Special District	6,000
Wayne	Wayne	7.000%	Standard Rate	5,900

Note: Total rates include the 5.500% state rate plus local city or county taxes. Some areas may have Good Life District (GLD) reduced rates.

How to Calculate Sales Tax in Nebraska

Sales Tax Calculation

Nebraska

Example: Furniture Purchase in Lincoln

Determine the purchase price

Purchase price (before tax) $1,200.00

Multiply by the total tax rate

State rate: 5.500%

Lincoln local: 1.75%

Total: 7.25%

$1,200.00 × 7.25% (0.0725)

Sales tax $87.00

Add to the original price

$1,200.00 + $87.00

TOTAL AMOUNT DUE $1,287.00

Thank you for your purchase

Reverse Calculation

Know the total in Lincoln? Divide by 1.0725 to find the pre-tax price. Example: $107.25 ÷ 1.0725 = $100.00

What's Taxed?

Taxable: Clothing, electronics, furniture

Exempt: Groceries, prescription drugs

Special Nebraska Sales Tax Rules

Good Life Districts (GLD)

As of July 1, 2024, Nebraska designated Good Life Districts receive a reduced state sales tax rate of 2.75% (instead of 5.5%) for purchases made within GLD areas that are also within city boundaries. Local taxes still apply.

How GLD rates work:

•
State rate reduced from 5.5% to 2.75%
•
Local taxes still apply at full rate
•
Must be within designated GLD area and city boundaries

Good Life Districts are special economic development zones designed to encourage business growth in designated areas.

Tax-Exempt Items

Nebraska exempts essential items from sales tax

•
Groceries: Most unprepared food for home consumption (excludes prepared food, candy, supplements, soft drinks)
•
Prescription Drugs: Both prescription and over-the-counter medications
•
Agricultural Machinery: Equipment used directly in farming and ranching operations
•
Manufacturing Equipment: Machinery and equipment used in production

Note: Clothing is NOT exempt in Nebraska and is taxed at the full rate.

How Nebraska Compares to Neighboring States

Here's how Nebraska's sales tax stacks up against nearby states

5.500%

South Dakota

4.20%

+ up to 2%
local tax

Kansas

6.50%

+ up to 4%
local tax

Nebraska

5.500%

+ local taxes (0.5-2%)

Moderate rate

Iowa

6.00%

+ 1% local option

Colorado

2.90%

+ up to 8.3%
local tax

Nebraska's state rate is moderate compared to neighbors, with structured local tax increments providing predictable total rates.

Got Questions?

Frequently Asked Questions

Nebraska Sales Tax Rate History

Nebraska adopted its sales tax in 1967 and has changed the rate 13 times since then:

Year	Rate	Notes
Current	5.500%	Current state rate (2.75% in GLD areas as of July 2024)
1967-Present	13 changes	Rate changed 13 times from original 2.5% to current 5.5%
1967	2.500%	Original rate when sales tax first adopted
1966	—	Voters approved constitutional amendment abolishing state property tax

Historical context: Nebraska adopted its sales tax in 1967 following a 1966 voter-approved constitutional amendment that abolished the state property tax. The sales tax replaced property tax as a primary revenue source for the state. The rate started at 2.5% and has been adjusted 13 times to reach the current 5.5% rate.

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Resources

Official NE Tax Info

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Disclaimer: This calculator provides estimates based on current Nebraska sales tax rates as of January 2025. Tax rates are subject to change by state and local legislation. For official tax rates and specific guidance on your situation, please consult the Nebraska Department of Revenue or a qualified tax professional.

Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.

Sources: Nebraska Department of Revenue, Neb. Rev. Stat. § 77-2701 et seq. (Sales and Use Tax), Local Tax Rate Tables

Last updated: October 10, 2025