Nebraska Sales Tax Rate Explained
Nebraska's state sales tax sits at 5.5%, a rate that has been stable for years and lands almost exactly in the middle of what states charge. The Tax Foundation's midyear 2026 figures add an average local rate of 1.48%, bringing the typical combined rate to 6.98%. That puts Nebraska at 27th in the national combined-rate ranking, firmly average.
The statewide average hides real local variation. Omaha shoppers most often see 7% at the register, Lincoln runs 7.25%, and smaller towns can land anywhere between the 5.5% state floor and the upper single digits. Your zip code matters more than the state average suggests.
What Is Taxed and What Is Exempt in Nebraska
Nebraska taxes most tangible goods at the full rate, from clothing and electronics to furniture and restaurant meals. Services are mostly off the hook, since the state taxes only a short list of specifically named services rather than services in general.
Groceries get a full exemption from the state rate, so unprepared food for home cooking rings up without the 5.5% charge. Prescription drugs and many agricultural inputs are also exempt, reflecting the state's farm economy. Digital products are a gray area worth checking before a big software purchase, since Nebraska has been expanding its treatment of digital goods.
Example: A $1,000 Purchase in Omaha
Omaha's most common combined rate is 7%, built from the 5.5% state tax plus a 1.5% city tax. On a $1,000 furniture purchase, the math runs: $1,000 times 0.07 equals $70.00 in tax, for a total of $1,070.00 at checkout.
Cross town lines into Lincoln and the same purchase costs a little more. Lincoln's 7.25% combined rate turns $1,000 into $72.50 of tax and a $1,072.50 total. Neither city is dramatically more expensive than the other, but the gap is real on big-ticket items.
Local Sales Taxes in Nebraska
Nebraska cities can levy their own sales taxes of up to 2%, and most of the state's larger cities use most or all of that room. Omaha's 1.5% and Lincoln's 1.75% are the two rates most Nebraskans encounter, and they apply on top of the state 5.5%.
Counties generally do not add their own layer the way they do in some neighboring states, so the city tax is usually the only add-on. That keeps the structure simple: state rate plus one city rate, with no special districts muddying the receipt.
Online Shopping and Marketplace Sales in Nebraska
Nebraska requires remote sellers and marketplace facilitators to collect tax once they cross the state's economic nexus thresholds, so Amazon, Walmart, and most large online stores charge Nebraska tax at checkout automatically. The rate follows the delivery address, so an order shipped to Omaha is taxed at Omaha's 7%.
Small out-of-state sellers below the thresholds may not collect, but that does not make the purchase tax-free. Nebraska's use tax technically applies, and residents are supposed to report it on their income tax return, though compliance is famously low.
Does Nebraska Have a Sales Tax Holiday?
No. Nebraska does not run a sales tax holiday, and it has never been part of the state's tax toolkit. Back-to-school shoppers in Omaha and Lincoln pay the full rate in August, the same as any other month.
Neighboring Iowa runs a holiday on clothing each August, so some eastern Nebraska shoppers cross the river to Council Bluffs for that weekend. It is a short drive for real savings on a family's worth of school clothes.
Frequently Asked Questions
What is the Nebraska sales tax rate?
The state rate is 5.5%. With average local add-ons of 1.48%, the typical combined rate is 6.98%, though Omaha is usually 7% and Lincoln 7.25%.
Are groceries taxed in Nebraska?
No. Unprepared groceries are fully exempt from Nebraska's state sales tax.
What is the sales tax in Omaha?
Omaha's most common combined rate is 7%, made up of the 5.5% state tax plus a 1.5% city tax.
Does Nebraska tax services?
Mostly no. Nebraska taxes only specifically listed services rather than services in general, so haircuts, repairs, and professional services are usually untaxed.
Does Nebraska have a sales tax holiday?
No. Nebraska has no sales tax holiday. Some shoppers cross into Iowa, which holds one each August.
Do online purchases get taxed in Nebraska?
Yes, when the seller has nexus. Major marketplaces collect Nebraska tax based on your delivery address.
Related Calculators
See the national picture on the main Sales Tax Calculator, or compare nearby states with our South Dakota, Wyoming, and Oklahoma pages. To see how much of your paycheck survives, try the Nebraska Paycheck Calculator.
Sources: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not tax advice, confirm your exact rate with the Nebraska Department of Revenue.