Mostly SaaS-friendly, with a security software carve-out
Think SaaS is always tax-free? In Nebraska, that assumption could cost you. While most SaaS escapes taxation, security software gets classified as a taxable service.
The quick version: $100,000 in sales or 200 transactions triggers nexus. SaaS is exempt, unless it performs a security function.
Nebraska sales tax rate table
| Field | Value |
|---|---|
| State base rate | 5.5% |
| Average combined rate | 6.94% |
| Local add-on range | 0% to 1.5% |
| Maximum combined rate | 7.0% |
| Rates vary by county/city | Yes |
| Sourcing | Destination-based |
Major cities like Omaha and Lincoln impose local taxes that push combined rates above the state base.
$100,000 or 200 transactions
Nebraska requires you to collect sales tax once you exceed $100,000 in gross sales or 200 transactions during the previous or current calendar year.
- All sales count toward the threshold, not just taxable ones.
- Marketplace sales count toward the threshold, but you're not separately liable once the marketplace collects.
- Register by the first day of the second calendar month after you cross either threshold.
SaaS is exempt, with security software as the exception
| Product / service | Tax treatment |
|---|---|
| SaaS (B2B and B2C) | Generally exempt |
| Security software (antivirus, firewall, threat detection) | Taxable, classified as a "security service" |
| Downloaded software (permanent license) | Taxable |
| Streaming / subscription software | Exempt (unless security-related) |
| Digital goods (e-books, music, video) | Taxable, "specified digital products" |
| Data processing / cloud storage | Generally exempt |
The security carve-out: if you offer cybersecurity tools, review your offerings carefully. This narrow exception is easy to miss.
Product taxability in Nebraska
| Product category | Tax treatment |
|---|---|
| Groceries & unprepared food | Exempt |
| Prepared food & restaurant meals | Taxable |
| Candy & soft drinks | Taxable |
| Clothing & apparel | Taxable |
| Prescription drugs | Exempt |
| Manufacturing machinery & equipment | Exempt |
| Agricultural inputs | Exempt |
| Computers & business equipment | Taxable |
Candy and soft drinks are taxable, unlike groceries, point-of-sale systems need to distinguish the two.
Nebraska does not offer any sales tax holidays
Unlike neighboring Iowa, Nebraska maintains its 5.5% rate year-round on all taxable goods.
Filing and registration
Registration
Register online through the Nebraska Taxpayer Access Point (TAP). Free, typically 7 to 10 business days.
Filing frequencies
| Frequency | Assigned when… |
|---|---|
| Monthly | Liability exceeds $3,000/month |
| Quarterly | Liability $300–$3,000/month |
| Annual | Liability under $300/month |
Returns due the 20th of the month following the reporting period.
Penalties and interest
- Late filing/payment: 10% of tax due
- Interest: 3% above the federal discount rate
Vendor discount: 2.5% (reduced from 3% in Jan 2026), capped at $75/month.
Not sure which of these apply to you?
We map your Nebraska exposure, from the security software rule to how your digital goods are taxed, and give you a plan. The first call costs nothing.
One registration, and full SST membership
Nebraska is not a home-rule state: register once, and the state distributes local taxes. Nebraska is a full SST member, offering free certified service providers and standardized definitions.
Voluntary Disclosure Agreement (VDA)
Nebraska offers a formal VDA program. Lookback is typically 3 years (vs. 4-year standard). Penalties waived; interest owed. Process takes 60–90 days.
Audit risk in Nebraska
Moderate enforcement. Common triggers: high exempt sales without documentation, misclassified digital goods or security software, use tax discrepancies. Statute of limitations: 3 years; indefinite for fraud.
Recent changes & quirky rules
SaaS is exempt, but security-function software is a taxable service.
Reduced from 3% to 2.5%, capped at $75/month.
Exemptions & resale certificates
Nebraska issues Form 13 (Resale or Exempt Sale Certificate), also accepts SST Uniform Exemption Certificate. Blanket, don't expire. Common exemptions: resale, manufacturing, agriculture, government.
Your next steps for Nebraska compliance
- Sell software with security features? Review classifications carefully.
- Sell digital goods? Nebraska taxes e-books, streaming, and games.
- Have past exposure? A VDA saves a year of back taxes and all penalties.
Where this comes from
Rates and thresholds on this page were verified June 10, 2026 against the Nebraska Department of Revenue and its sales and use tax guidance. ZIP-level rates in the calculator come from our rate file, updated monthly.