Taxes

Taxes

Low business costs.

Locating in Lincoln is easy and has proven to be a smart decision for many businesses in the community.

Taxes

A. Income Tax
Corporate Income Tax/Franchise Tax: State 
     Rate (range)5.58%‐7.81%
     Formula (e.g. Sales, Property & Payroll)Sales only
     Federal Taxes DeductibleNo
     Accelerated Depreciation Permitted?Yes (MACRS)
Personal Income Tax: State Rate2.56% ‐ 6.84%
Gross Receipts Tax Rate by Type of BusinessNone
Local Occupation Tax (Paid by Employee)None
Local Wage Tax (Paid by Employer)None
B. Sales/Use Tax
1. Rates
State5.50%
Local1.50%
Total7.00%
2. Local Occupation Tax
Bar/Restaurants2.00%
Hotel/Motels4.00%
Car Rental4.00%
Telecommunications6.00%
3. Property Subject to Sales Tax
Production Machinery & EquipmentNo
Non-Production Machinery & EquipmentYes
Pollution Control EquipmentRefund Available
Office Furniture/Fixtures/EquipmentYes
Office Building Construction MaterialsYes
Industrial Building Construction MaterialsYes
Manufacturers' Raw MaterialsYes
Standard SoftwareYes
Custom SoftwareYes
Intangible PropertyYes
4. Utilities
Electric Power7.00%
Natural Gas7.00%
Fuel Oil7.00%
Water & Sewer7.00%
5. Telephone 
Local Sales Tax1.50%
Local Occupational Tax6.00%
State Sales Tax5.50%
State Universal Service Fee6.95%
C. Property Tax 
There is no state-levied property tax in Nebraska
There is no Property tax on business inventories in
 
1. Local Tax Rate/$100 of Valuation20092010201120122013
Lancaster County 0.2683000.2683000.26830000.26830000.2813000
Public Building Commission0.0170000.0170000.01700000.01666000.0169930
City of Lincoln0.2878800.2878800.315800000.31580000.3158000
Lincoln Public School1.2536631.2462071.24620701.24470501.2440950
ESU #180.0149570.0149910.01500000.01500000.0150000
Lower Platte South NRD0.0409790.0405860.03984800.03775000.0360730
Railroad Trans. Safety District0.0260000.0260000.02600000.01000000.0130000
Southeast Community College0.0676000.0600000.06270000.06270000.0667000
Lancaster County Ag. Society0.0016430.0016550.00158100.00150100.0014980
Lancaster County Ag. Society JPA0.0038300.0038140.00373100.00351200.0033940
Lancaster Co Correctional Facility JPA-County0.0107290.0106390.01051100.00994000.0095930
Lancaster Co Correctional Facility JPA-Lincoln0.0193630.0188780.01853400.01767200.0171920
Consolidated Rate2.01194401.99595002.02521202.01954002.0206380
2. Local Property Tax
There is no personal property tax on property for personal use.
Depreciable tangible personal property is subject to property taxation at its net book value.
Production Machinery & EquipmentYes
Non Production Machinery & EquipmentYes
Pollution ControlYes
InventoryNo
Office Furniture-FixturesYes
Computer EquipmentYes
WorkstationsYes
TelephonesYes
FurnitureYes
Company VehiclesNo
Motor vehicles (non-registered, not depreciable)No
Motor vehicles (non-registered, depreciable)Yes
Standard Operating System Software (tangible)Yes
Application Custom Software (intangible)No
Freeport LegislationNA
Applicable to WarehousingNA
Goods Stored in a Public WarehouseNA
State Property Tax 
Real PropertyNo
Personal Property(machinery/equipment)No
Exemptions 
Nebraska Advantage Act (2005 Neb. Laws LB 312) approved property which may include logistics & distribution equipment, computers and corporate aircraftYes
Employment & Investment Growth Act (1987 Neb. Laws LB 775) approved property;Yes
Educational, religious, charitable, and cemetery property which has been granted a "permissive" exemption by the county boardYes
Household goods and personal effects not owned for financial gain or profitYes
Property owned by the state and local governmental subdivisions and used or being developed for use for a public purposeYes
Personal property owned for purposes of leasing or renting, if leased or rented for 30 days or less, and can be returned at any time by the lessee or renterYes
Tangible personal property which is NOT depreciableYes
Agricultural societiesYes
Registered motor vehiclesYes
InventoryYes
LivestockYes

Information submitted herein was received from sources deemed to be reliable. Although we have no reason to doubt the accuracy or completeness of the data, it may be subject to errors or omissions.

Sources:

Download the Nebraska Advantage Brochure

Connect With Us

Lincoln Partnership for Economic Development
3 Landmark Centre
1128 Lincoln Mall, Ste. 100
Lincoln, NE 68508

402.436.2350

News Feed

06/26/2017
LPED Sponsors I/O Innovation Summit and attends ESHIP Summit in KC
View Article
06/14/2017
Inside/Outside Innovation Summit’s $100K Pitch Finalists Announced
View Article
06/12/2017
The Partnership Launches MyTern, a Community Immersion Experience for Lincoln Interns This Summer
View Article
05/23/2017
Economic Development Breakfast Recap, Dashboard now Available
View Article