Nebraska Use Tax is due on all taxable purchases when Nebraska and any applicable local sales tax is not paid. You may owe use tax if you have not paid the Nebraska sales tax or any applicable local sales tax on purchases delivered into Nebraska from out-of-state, mail order, or Internet sellers. Nebraska law requires that if sales tax is not collected by the seller on any taxable sale, the purchaser must remit the tax directly to the state.
Enter your total taxable 2022 purchases where Nebraska sales tax was not collected by the seller. Multiply this amount by 5.5% (.055). If local tax applies, enter your local code and multiply your total taxable purchases by the local rate (.005, .010, .015, .0175 or .02). Add the state and local tax amounts together and enter on line 42 of the tax return. The use tax information appears on line 42 of the Nebraska Form 1040N.
Examples of situations when use tax is due:
- If you buy taxable items over the Internet and do not pay Nebraska and local sales tax;
- If you buy taxable digital goods such as music, movies, music videos, TV shows, books, and ring tones and do not pay Nebraska and local sales tax;
- If you buy taxable items through a home shopping channel and do not pay Nebraska and local sales tax; and
- If you buy taxable items by mail order and do not pay Nebraska and local sales tax.
*Note: If you owe use tax to more than one Nebraska local jurisdiction, do not report use tax here. Instead, report state and local use taxes by filing the Individual Use Tax Return, Form 3.
For a complete list of county tax rates, please click here.