Nebraska Vehicle Sales Tax & Fees [+ Calculator]
If you’re ready to buy a car in Nebraska, you’re already ready to drop some serious cash. But you may need to prepare for a bigger financial commitment than you’re thinking.
Things like sales tax and other fees are often forgotten about in the excitement of making a new car purchase. But in Nebraska, you’ll need to be prepared to spend additional money on these extra costs.
Here’s what to expect when it comes to taxes and fees in Nebraska.
Table of Contents
- How Much Is the Car Sales Tax in Nebraska?
- How to Calculate Nebraska Sales Tax on a Car
- Nebraska Car Sales Tax Calculator
- Do I Have to Pay Sales Tax on a Used Car?
- Which County Has the Highest Tax? Which Has the Lowest?
- Car Sales Tax for Trade-Ins in Nebraska
- Car Sales Tax on Private Sales in Nebraska
- Tax on Rebates & Dealer Incentives
- Nebraska DMV/State Fees
- When Sales Tax Is Exempt in Nebraska
- Nebraska EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in Nebraska?
The state sales tax on a car purchase in Nebraska is 5.5%. Therefore, you will be required to pay an additional 5.5% on top of the purchase price of the vehicle.
However, this does not include any potential local or county taxes. The average local tax rate in Nebraska is 0.825%, which brings the total average rate to 6.325%.
As an example, if you were to purchase a new truck at a purchase price of $50,000, then you will have to pay an additional $2,750 in sales tax. That would bring the final price up to $52,750.
How to Calculate Nebraska Sales Tax on a Car
You can calculate the sales tax in Nebraska by multiplying the final purchase price by .055%.
For example, let’s say that you want to purchase a new car for $60,000, you would use the following formula to calculate the sales tax:
$60,000 x.055 = $3,300.
This means that your sales tax is $3,300 on a $60,000 purchase price.
Calculate Car Sales Tax in Nebraska Example:
- Initial Car Price: $60,000
- Sales Tax Rate: 5.5%
- Trade-In Amount: $5,000
- Incentives/Rebates: $2,000
Sales Tax = ($60,000 - $5,000 - $2,000) * .055
Sales Tax = $2,915
Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.
Nebraska Car Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
The sales tax is the same 5.5% on a used vehicle.
For example, if you were to purchase a used car for $20,000, then you will have to pay an additional $1,100 in sales tax.
Which County Has the Highest Tax? Which Has the Lowest?
Gage county has the highest car sales tax rate at a combined total of 8%.
Several counties have a sales tax rate of 5.5%. They include Author, Banner, Blaine, Cherry, Haves, Hitchcock, Logan, Loup, McPherson, Thomas, and Wheeler county.
Car Sales Tax for Trade-Ins in Nebraska
You don’t have to pay sales tax on trade-ins. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.
As an example, let’s say you are purchasing a new truck for $55,000 and your trade-in is worth $15,000. You will subtract the trade-in value by the purchase price and get $40,000. Therefore, your car sales tax will be based on the $40,000 amount.
Car Sales Tax on Private Sales in Nebraska
A sales tax is required on all private vehicle sales in Nebraska.
As an example, if you purchase a truck from a private party for $30,000, then you will pay 5.5% of that amount to the Nebraska DMV. That amount is $1,650.
Tax on Rebates & Dealer Incentives
You do not have to pay tax on dealer rebates and incentives. In other words, be sure to subtract the incentive/rebate amount from the car price before calculating sales tax.
As an example, if you are purchasing a new car for $60,000 with a $5,000 rebate, you will only pay sales tax on the $55,000 final cost of the car (the $60,000 cost of the vehicle minus the $5,000 rebate).
This also applies to dealership incentives.
Nebraska DMV/State Fees
In addition to sales tax, you will have to pay associated fees to the DMV and the state.
The Nebraska DMV charges the following fees:
- Car Registration Fee: $15 per year
- Title Fee: $10
- Alternative Fuel Fee: $75 per year
- License Plate Fee: $3.30
Additional fees required with each annual registration:
- Emergency Medical System Operation Fund: $0.50
- Department of Motor Vehicles Cash Fund: $2.00
- State Recreation Road Fund: $1.50
- County General Fund: $1.50
Nebraska Dealership Fees
Dealerships charge what is known as a document fee or a “doc fee.” This is the fee that covers the dealership’s management of the paperwork to handle the vehicle title on your behalf.
Unfortunately, you will not be able to avoid paying this fee. The average document fee in Nebraska is $222.
When Sales Tax Is Exempt in Nebraska
There are a few instances in which your vehicle purchase will be exempt from sales tax. The following events are except the car sales tax in Nebraska:
- If you inherited the vehicle.
- You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.
- You receive the vehicle in a divorce.
- You receive the vehicle from an individual’s revocable trust.
Nebraska EV Rebates & Incentives
Nebraska offers a rebate of up to $4,500 on a new electric vehicle purchase. This is on top of the up to $7,500 rebate offered by the federal government.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
Frequently Asked Questions
What is the sales tax on a car purchased in Nebraska?
The sales tax on a car purchased in Nebraska is 5.5% statewide.
Do I have to pay sales tax on a used car in Nebraska?
The sales tax on a used vehicle in Nebraska is 5.5%, the same as a new car purchase.
Which county in Nebraska has the lowest tax?
Several counties have only the statewide sales tax rate of 5.5% without any additional city or county tax. These cities include Author, Banner, Blaine, Cherry, Haves, Hitchcock, Logan, Loup, McPherson, Thomas, and Wheeler county.
Which county in Nebraska has the highest tax?
Gage county has the highest tax rate in Nebraska at 8%.
Do I have to pay sales tax on a gifted car in Nebraska?
You do not have to pay sales tax if the vehicle is gifted to you from a spouse, parent, child, grandparent, or grandchild.
How much is registration in Nebraska?
The car registration fee in Nebraska is $15 a year.
Does a trade-in reduce sales tax in Nebraska?
Ar trade-in reduces your sales tax by the price of the trade-in. In other words, subtract the trade-in amount from the car price before calculating sales tax.