Nebraska Sales Tax for LLCs — Registration & Compliance

If your Nebraska LLC sells taxable goods or certain services, you must collect and remit Nebraska sales tax. The state rate is 5.5%, plus local additions bring the combined rate to 5.5%-7.5% depending on location. This is a significant ongoing compliance obligation that requires registration, collection, record-keeping, and regular filing. For the complete tax picture, see our tax guide. For formation, see our LLC guide.

Nebraska Sales Tax Rates

Local rates are set by cities and counties. Over 200 Nebraska jurisdictions impose local sales taxes. The Nebraska Department of Revenue maintains a rate lookup tool at revenue.nebraska.gov.

What's Taxable in Nebraska

Taxable (5.5% + local):

• Tangible personal property (physical goods) sold at retail
• Digital products (software, music, movies, ebooks) — taxable in Nebraska
• Some services (see list below)
• Restaurant meals and prepared food
• Lodging/hotel stays (plus additional lodging taxes)

Taxable services in Nebraska:

• Building cleaning and maintenance
• Pest control
• Motor vehicle towing
• Detective/security services
• Computer software (pre-written)
• Lawn care and landscaping
• Some repair services

Exempt:

• Most professional services (legal, accounting, marketing, consulting)
• Medical services and prescription drugs
• Groceries (unprepared food for home consumption)
• Agricultural inputs (feed, seed, fertilizer)
• Manufacturing machinery and equipment
• Sales for resale (buyer provides resale certificate)

How to Register

1. Apply for a Nebraska Sales Tax Permit at revenue.nebraska.gov
2. Complete Nebraska Tax Application (Form 20)
3. No fee for the permit itself
4. Permit is issued for the LLC's Nebraska locations
5. Display the permit at your business location(s)

You must register BEFORE making your first taxable sale. Operating without a permit and collecting sales tax is a violation of Nebraska revenue law.

Collection and Filing

Collection:

• Charge the correct combined rate (state + local) based on the delivery destination
• Nebraska is a destination-based state — apply the rate where the buyer receives the goods
• Keep records of all taxable and exempt sales

Filing schedule (based on monthly tax liability):

• Monthly: If collecting $900+ in tax per month
• Quarterly: If collecting $300-$900 per month
• Annual: If collecting less than $300 per month

Filing method: Electronic filing at revenue.nebraska.gov (required for most businesses)

Due dates: 20th day of the month following the reporting period

Nebraska vs. Neighboring States

FAQ

Do I need to collect sales tax if I only sell online?

If you sell taxable goods to Nebraska customers (regardless of whether you're online or in-store), you must collect Nebraska sales tax if you meet nexus thresholds. As a Nebraska-based LLC, you automatically have nexus in Nebraska.

What about out-of-state sales?

You don't collect Nebraska sales tax on sales shipped to customers outside Nebraska. However, if you exceed other states' economic nexus thresholds ($100K in sales or 200 transactions), you may need to collect THOSE states' sales taxes.

Is my service taxable?

Most professional services are exempt in Nebraska. However, specific services ARE taxable (cleaning, pest control, landscaping, security, some repairs). Check Nebraska Sales Tax Information Guide (Revenue Ruling 01-22-1) for your specific service type.

What penalties apply for not collecting sales tax?

Nebraska imposes interest on unpaid taxes plus a 5% penalty per month (up to 25%). Criminal penalties can apply for willful failure to collect or remit. The LLC is personally liable for collected but unremitted tax.