Sales Tax Rules
Nebraska imposes a state sales tax rate of 5.5%, with a maximum combined rate (state plus local) of 8% when local taxes are added. Economic nexus is triggered at $100,000 in sales or 200 transactions — meaning out-of-state businesses that exceed this threshold must collect and remit Nebraska sales tax. SaaS and digital software products are generally exempt from sales tax in Nebraska. Groceries are exempt from state sales tax.
SaaS Tax Details
Access-only SaaS is generally not taxable; cloud-based security services are taxable.
Grocery Details
Groceries are exempt; prepared food and soda are taxable.
What is the sales tax rate in Nebraska?
Nebraska's state sales tax rate is 5.5%. When local taxes are added, the maximum combined rate can reach 8%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Nebraska?
Nebraska requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales or 200 transactions in a calendar year. Once nexus is established, the business must register, collect, and remit Nebraska sales tax.
Is SaaS taxable in Nebraska?
No. SaaS products are generally exempt from sales tax in Nebraska. Access-only SaaS is generally not taxable; cloud-based security services are taxable.
Are groceries taxed in Nebraska?
Groceries are generally exempt from sales tax in Nebraska. Groceries are exempt; prepared food and soda are taxable.
Are digital goods taxable in Nebraska?
Yes. Nebraska taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Nebraska customers should collect sales tax.
Are clothing items exempt from sales tax in Nebraska?
Clothing is subject to sales tax in Nebraska at the standard state rate.
How often do I need to file sales tax in Nebraska?
Nebraska requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Nebraska Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.