State guide · NE
Nebraska sales tax and property tax
A grocery exemption that even covers candy and soda, local rates that can only change four times a year, and a property tax bill the state now pays part of.
Facts read on official Nebraska pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 5.5%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $3,739
- Effective property rate
- 1.42% · #7 of 51
Nebraska charges a 5.5% state sales tax, and cities, villages and counties may add a voter-approved local rate of up to 2%, so combined rates on the Department of Revenue's rate cards run up to 7.5%. The grocery exemption is wider than in most states: food for home consumption is exempt, and so are soft drinks, candy, chewing gum and bottled water, while restaurant meals, vending machine food, alcohol and dietary supplements are taxed. Clothing has no exemption. Goods shipped to a buyer are taxed at the rate of the delivery address. Property tax is the heavier load: Nebraska ranks 16 of 51 for the median bill, $3,739 a year on a $263,100 home (Census ACS 2024), an effective rate of 1.42%. Two state-funded credits now come off every tax statement, and owners aged 65 and over with modest incomes can file Form 458 for the homestead exemption.
Total to pay
$105.50
Sales tax $5.50 · 5.5% of the price
| Price before tax | $100.00 |
| State tax · 5.5% | $5.50 |
| Local tax · 0% | $0.00 |
| Total | $105.50 |
Rule applied: general state rate. Exact local rate for an address: Nebraska rate lookup. How this is calculated.
Sales tax in Nebraska
The local layer in Nebraska is easy to read once you know who can levy it. A city or village may adopt 0.5%, 1%, 1.5%, 1.75% or 2%; a county may too, but only Dakota County does, and its 0.5% applies only outside towns that already have their own tax. The Department of Revenue uses that county as its textbook case: an $800 television bought in Homer carries $48.00 of tax, while the same set bought in South Sioux City, with its 1.5% city rate and no county rate, carries $56.00. With no local tax at all, the state part alone is $44.00. Any new local rate, increase or repeal starts only on January 1, April 1, July 1 or October 1, at least 120 days after the ordinance reaches the Department.
Good Life Districts are the Nebraska oddity: inside them, special state-rate rules apply. LB 707, passed in 2025, put most of them back on the full 5.5% on October 1, 2025, and cancelled the 2.75% district option tax planned for Avenue One and Nebraska Crossing. Retailers that opt in inside GLD Avenue One in Omaha still charge a 2.75% state rate, so a receipt there can look lower than the rest of the metro.
Other rules worth knowing before you shop: hotels add a 1% state lodging tax on top of sales tax; repair labor on a worn car part is not taxed, but installing new parts or painting a car is; and since 2025 gold, silver, platinum and palladium bullion is exempt. LB 901 removed several business exemptions on July 1, 2026. Orders from sellers who did not charge Nebraska tax owe use tax, reported on Form 1040N or Form 3.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 5.5% | yes | Statewide sales and use tax rate of 5.5%. Cities and counties may add a local sales and use tax. Inside Good Life Districts (GLDs) special rules apply: since October 1, 2025 the state rate is back to 5.5% in most GLDs, but retailers opting in within GLD Avenue One (Omaha) charge a 2.75% state rate. |
| Groceries (food for home) | 0% | no | Food and food ingredients for human consumption are exempt, including soft drinks, candy, chewing gum and bottled water. Prepared food, food sold through vending machines, alcoholic beverages and dietary supplements are taxable. |
| Clothing | 5.5% | yes | No clothing exemption appears in the DOR's list of Nebraska sales tax exemptions; clothing is taxed at the state rate plus any local rate. |
| Prescription drugs | 0% | no | |
| Lodging (state lodging tax) | 1% | 1% state lodging tax collected by hotels, on top of sales tax; some counties add a county lodging tax. |
Local sales taxes
Levied by Cities, villages and counties, after voter approval (Local Option Revenue Act, Neb. Rev. Stat. 77-27,142 to 77-27,148). Only Dakota County currently levies a county sales tax, and it applies only outside municipalities that have their own local tax.. Local rates can be set at 0.5%, 1%, 1.5%, 1.75% or 2%. DOR rate cards run from 5.5% up to 7.5% combined. Find the exact combined rate for an address with the official Nebraska lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
No 2026 sales tax holiday was found on the official Nebraska pages read on October 5, 2026.
Worth knowing about Nebraska sales tax
- A city or county sales tax can only start, change or end on January 1, April 1, July 1 or October 1, at least 120 days after the DOR receives the voter-approved ordinance. source
- Dakota County's 0.5% county tax applies only outside cities with their own tax: a purchase in Homer pays 6% (5.5% + 0.5%), while one in South Sioux City pays 7% (5.5% + 1.5% city tax, no county tax). source
- LB 707 (2025) returned the state rate in most Good Life Districts to 5.5% on October 1, 2025 and cancelled the 2.75% GLD local option tax planned for Avenue One and Nebraska Crossing. source
- Nebraska taxes delivered goods at the rate in effect where they are delivered (state 5.5% plus the local rate at the delivery address). source
- LB 901 (2026) repealed several sales tax exemptions on July 1, 2026, including those for data center equipment, biochips, C-BED wind projects and game birds. source
- Since January 1, 2025, tax-exempt bullion includes gold, silver, platinum and palladium coins, notes, leaf, foil and film whose value depends mainly on metal content. source
- Repair labor on a used, worn or damaged motor vehicle part is not taxable, but labor to install new or upgraded parts or to paint a vehicle is taxable. source
Property tax in Nebraska
County assessors value homes at 100% of market value as of January 1, and agricultural land at 75%. Values are set by March 19, notices of change go out by June 1, and an owner who disagrees has from June 1 to June 30 to protest to the county board of equalization. Counties, cities, school districts, natural resources districts, community colleges and other bodies then set their levies,.
What makes the Nebraska statement unusual is the state money printed on it. The Real Property Tax Credit pays $118.87 per $100,000 of taxable value on homes and other non-farm property for 2026, about $356.61 on a house assessed at $300,000. The larger School District Property Tax Relief Credit, created by LB 34 in the 2024 special session, cuts each parcel's school taxes in proportion to what the district levies, with $809,538,045 set aside for 2026-2027. It replaced the old refundable income tax credit, which ended after tax year 2023, so owners no longer claim it on their income tax return.
At the Census ratio of 1.42%, a $250,000 home pays roughly $3,553 a year before those credits are counted against specific levies. Growth in what cities, villages and counties may request is capped by the Property Tax Growth Limitation Act, and from January 1, 2027, LB 803 requires a two-thirds board vote to raise a request above the prior year's. Owners 65 or older can get full relief from the homestead exemption with income up to $37,000.99 single or $43,400.99 married, provided they live in the home from January 1 through August 15. The exemption shrinks 10% for each $2,500 the home's value exceeds the county maximum.
Property tax on a home in Nebraska
Typical bill per year
$3,739
| Per month | $312 |
| Median effective rate in Nebraska | 1.42% |
| Median bill paid | $3,739 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Nebraska |
|---|---|
| Median home value (owner-occupied) | $263,100 |
| Median real estate taxes paid | $3,739 |
| with a mortgage | $3,966 |
| without a mortgage | $3,371 |
| Effective rate (tax ÷ value) | 1.42% |
| Rank by effective rate (1 = highest) | 7 of 51 |
| Rank by median bill | 16 of 51 |
How the taxable value is set
All real property is valued at 100% of actual (market) value as of January 1, except agricultural and horticultural land, which is valued at 75% of actual value (special valuation land at 75% of its agricultural-use value). County assessors set values by March 19 and mail change-of-value notices by June 1; protests go to the county board of equalization from June 1 to June 30. Who levies the tax: Local: counties, cities, villages, school districts, learning communities, natural resources districts, community colleges and other political subdivisions. County assessors value property and county treasurers collect; the State funds two credits that directly reduce bills.
Other property tax relief
- Real Property Tax Credit (Property Tax Credit Act). State-funded credit shown on every real property tax statement. For tax year 2026: $118.87 per $100,000 of taxable value for non-agricultural property and $142.64 per $100,000 for agricultural land ($495,526,087 in total). source
- School District Property Tax Relief Credit (SDPTRC). Created by LB 34 (2024 special session); directly reduces school district taxes on each parcel in proportion to school taxes levied. $809,538,045 is available for tax year 2026-2027. source
Worth knowing about Nebraska property tax
- LB 34 (August 2024 special session) replaced the refundable income tax credit for school district property taxes (Property Tax Incentive Act), which ended after tax year 2023, with a credit applied directly on the property tax statement. source
- Since fiscal years starting July 1, 2025, the Property Tax Growth Limitation Act caps the yearly growth in property tax requests by cities, villages and counties (with exceptions for bonds, emergencies, public safety and voter approval). source
- From January 1, 2027 (LB 803), a political subdivision needs a two-thirds vote of its board to set a property tax request above the prior year's. source
- The homestead exemption is cut 10% for each $2,500 by which the home's value exceeds the county maximum, and lost entirely at $20,000 over. source
- To qualify for the homestead exemption, the owner must occupy the home from January 1 through August 15 of the year; homes held only by an LLC, corporation or partnership do not qualify. source
- LB 1067 raises the documentary stamp tax on real estate transfers from $2.32 to $3.32 (operative July 18, 2026, until January 1, 2032). source
- State credit money is paid to counties in two equal installments, by January 31 and by April 1; unused credits go back to the Property Tax Administrator. source