Does Nebraska charge sales tax on services?
by June 28, 2023
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of Nebraska, which has a state sales tax rate of 5.5%.
Does Nebraska charge sales tax on services?
Services are generally not taxable in Nebraska, with the following exceptions:
- Admissions to a location for purposes of amusement, entertainment or recreation
- Pest control services
- Building cleaning and maintenance
- Installation or application of tangible personal property
- Motor vehicle towing, painting, washing and waxing
- Security services
- Computer software and training
- Animal specialty services
- Detective services
- Recreational Vehicle (RV) park services
- Repair or maintenance services
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Nebraska sales tax, TaxJar’s guide to sales tax in Nebraska and the Nebraska Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
