Thu 07 Apr 2016 | By:

Everything You Need to Know About Nebraska Business Taxes

Small Business Taxes

It’s not easy being a small business entrepreneur especially when it comes to completing your tax obligations when you’re officially starting a business in Nebraska.

Your requirements for Nebraska business taxes should be taken as a serious responsibility because it can affect business operations. There are many different types of taxes and the paperwork involved in each of these requirements is no joke.

However, each form for the specific tax should be properly filed and all receipts should be well accounted for and filed to ensure that the steps to your Nebraska business tax requirements are completed successfully.

This guide enumerates some of the basic business taxes that your business is commonly required to file for.


Nebraska Business Income Tax

There is a Nebraska Business Income Tax currently in place. Traditional Corporations are taxed based on two rates: one, 5.58% is imposed for taxable income at $100,000 or below; two, 7.81% is imposed for taxable income over $100,000.

In addition, there is also the so-called franchise tax or more commonly known, ‘corporation occupation tax’. Further, income that personally goes through you from the business will also be taxed through your personal tax return.

Your new business may be subject to both corporation income tax and franchise tax, either of these two, or neither at all, depending on the business structure you’ll incorporate in.

Nebraska Federal Tax Forms and Publications

When completing various tax obligations, the standard forms and its corresponding needed requirements should only be obtained from an official source. This is to ensure that you are using all the right materials to complete, and you do not have to worry about missing out on any requirement.

For Nebraska Federal Tax Forms and Publications, there is only one official source of this information – Nebraska Department of Revenue.

Unemployment Insurance Tax

The Nebraska Unemployment Insurance is provided to workers of the state of Nebraska who have been laid off or are currently unemployed through no fault of their own.

This is a temporary subsidy provided by the state of Nebraska to sustain employees who are looking for a job. Basically all employers are required to pay for the Nebraska Unemployment Insurance Tax. To obtain an in-depth understanding of this tax obligation, you can refer to Nebraska’s Department of Labor.

Nebraska Sales and Use Tax

There is a Nebraska Sales and Use Tax in effect in the state. Currently, the state sales and use tax rates are at 5.5%. In addition to these, there is also a provision that local sales and use taxes can also be implemented at the city and county levels. These local taxes can be set at various percentage rates starting from 0.5% up to 2%.

The sales tax is imposed on the sales of various goods or tangible property within Nebraska except for foods and prescription drugs. The use tax, on the other hand, complements the sales tax, and is imposed on any tangible property where the sales tax is not paid.

For further information on Sales and Use Tax, go to Nebraska’s Department of Revenue.


a great tool

Startup Tools and ResourcesJust as entrepreneurs need startup assistance resources in their business, there are also several tools and applications that can be used to facilitate a smoother and more efficient business tax life.

Since the process of completing tax reports and requirements is not a simple, one-time task, small business accounting software can immensely help streamline this process.

Small Business Accounting Software

QuickBooksFreshBooks, and Xero are three time-tested, established small business accounting software options that most small business entrepreneurs use to simplify accounting tasks and make their tax life easier.

Each of these applications has a number of different set features and tools that help in various aspects of running a business, automating repetitive tasks, saving time and energy in the process.

Before picking a small business accounting software to use, take all business requirements into consideration, go through the features of each accounting software, and then make an informed decision that benefits your business most.

This guide is not a legal tax document or advice, it is merely an informational article. For questions on the Nebraska tax system or starting a business in Nebraska, seek the professional advice of a business lawyer.

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via