What is the sales tax rate in Nebraska?

Nebraska levies a 5.50% state sales tax. With local taxes added, the statewide average combined rate is 6.97%. Actual rate at the register depends on your city and county.

Does Nebraska tax groceries?

Groceries are exempt from state sales tax in Nebraska. Hot or prepared food typically remains taxable.

Does Nebraska have a sales tax holiday?

Nebraska does not run an annual sales tax holiday. For tax-free shopping, consider neighboring states with holidays, or use online retailers based in no-sales-tax states (OR, MT, NH, DE) - though use tax may still apply on out-of-state purchases.

Who collects sales tax in Nebraska?

The Nebraska Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to Nebraska must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).

Estimate only - not tax advice. Methodology and sources.

Nebraska Sales Tax

State + average local combined rate, category exemptions, and how it compares to neighbors.

State rate

5.50%

Average combined (state + local)

6.97%

Nebraska vs neighboring states

5.44%

6.41%

6.94%

6.97%

7.82%

8.38%

8.69%

NE highlighted · average combined state + local rate

Category exemptions

Category	Rule	Detail
Groceries	Exempt	Unprepared food at grocery stores.
Clothing	Taxed (full rate)	Everyday apparel and footwear.
Prescription drugs	Exempt	Prescribed medications dispensed by a licensed pharmacist.

Example: $100 purchase

State sales tax only: $5.50
Combined (state + average local): $6.97
Total with combined tax: $106.97

Major cities in Nebraska

City	Combined rate	vs state avg
Omaha	7.00%	+0.03%
Lincoln	7.25%	+0.28%
Bellevue	7.50%	+0.53%
Grand Island	7.50%	+0.53%
Kearney	7.50%	+0.53%

Border shopping - vs neighboring states

For larger purchases, driving to a neighbor with lower combined rate can save real money.

State	State rate	Avg combined	vs NE	Save on $1,000
Nebraska (current)	5.50%	6.97%	-	-
Wyoming	4.00%	5.44%	-1.53%	$15.30
South Dakota	4.20%	6.41%	-0.56%	$5.60
Iowa	6.00%	6.94%	-0.03%	$0.30
Colorado	2.90%	7.82%	+0.85%	-
Missouri	4.23%	8.38%	+1.41%	-
Kansas	6.50%	8.69%	+1.72%	-

Common questions

What is the sales tax rate in Nebraska?: Nebraska levies a 5.50% state sales tax. With local taxes added, the statewide average combined rate is 6.97%. Actual rate at the register depends on your city and county.
Does Nebraska tax groceries?: Groceries are exempt from state sales tax in Nebraska. Hot or prepared food typically remains taxable.
Does Nebraska have a sales tax holiday?: Nebraska does not run an annual sales tax holiday. For tax-free shopping, consider neighboring states with holidays, or use online retailers based in no-sales-tax states (OR, MT, NH, DE) - though use tax may still apply on out-of-state purchases.
Who collects sales tax in Nebraska?: The Nebraska Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to Nebraska must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).

Full data sources and formulas: /sources.

Estimate only - not tax advice. Local rates vary by city and county - your actual rate at the register may differ from the state average. Category-specific exemptions (groceries, prescription drugs, clothing) and tax holidays change by year; check the Nebraska DOR for current rules. All states →

Sources

Last reviewed: 2026-10-08 · Reviewed by kgenots, Editor · editorial policy