Nebraska use tax is due on taxable purchases when Nebraska state sales tax and any applicable local sales tax were not paid to the seller. This commonly occurs when purchases are made online, through mail-order retailers, or from out-of-state sellers that did not collect the correct Nebraska tax. Nebraska law requires purchasers to report and pay any use tax owed directly to the state. The same items and services subject to Nebraska sales tax are generally subject to Nebraska use tax.
Common Situations When Use Tax Is Due
You may owe Nebraska use tax if:
- You purchase taxable items over the internet and Nebraska sales tax and any applicable local sales tax are not collected.
- You purchase taxable digital goods, such as music, movies, TV shows, books, or ringtones, and Nebraska sales tax and any applicable local sales tax are not collected.
- You purchase taxable items through a home shopping channel and Nebraska sales tax and any applicable local sales tax are not collected.
- You purchase taxable items by mail order and Nebraska sales tax and any applicable local sales tax are not collected.
- You purchase taxable property from an out-of-state retailer and bring the property into Nebraska for use or storage.
- You purchase taxable services from a seller who did not collect Nebraska sales tax and any applicable local sales tax.
- You purchase a taxable item or service that is delivered to a Nebraska address and the seller does not collect the applicable Nebraska sales tax. Shipping, handling, and delivery charges may also be subject to tax.
Program Pathway
- Select State
- Edit Nebraska Return (click the three dots)
- Use Tax
Enter the total amount of purchases subject to use tax and select the appropriate city before saving your entries.
Note: If you owe use tax to more than one Nebraska local jurisdiction, do not report the tax through this section of the program. Instead, file the Nebraska and Local Individual Use Tax Return (Form 3) to report your state and local use tax. Form 3 allows taxpayers to report use tax for multiple local taxing jurisdictions.
The Nebraska state sales and use tax rate is 5.5%. In addition, many Nebraska cities and some counties impose local sales and use taxes. The applicable local rate is generally based on the delivery location of the purchase.
For current Nebraska city and county local sales and use tax rates, refer to the Nebraska Department of Revenue's local sales and use tax rate resources.
Additional Information
You can review the Nebraska Use Tax Information Guide or FAQs on the Nebraska Department of Revenue website for further information.