How Much are Used Car Sales Taxes in Nebraska?

When buying a used car in Nebraska, don’t get caught off guard by the state’s vehicle sales tax. Nebraska collects a 5.5% statewide sales tax on car purchases.

The tax is 5.5% of your vehicle's purchase price. On top of that, you may owe local taxes as well. And then there are the fees.

Keep reading to get the full scoop on Nebraska motor vehicle sales taxes and fees.

When making a car purchase in Nebraska, you’ll pay sales tax, whether you buy from a private seller or a car dealer. Nebraska sales tax law does not discriminate between the two. Unless you qualify for a tax exemption (discussed below), you have to pay tax on your vehicle purchase.

In addition to the 5.5% state tax, you may owe local sales taxes on your vehicle purchase.

Many Nebraska municipalities and counties charge local sales taxes.

Depending on where you live in Nebraska, you could end up paying from 1% to 2% local sales tax on top of the state’s 7.50%.

See a complete list of all Nebraska city and county sales tax rates on this official resource.

You're in Alma, and you find a stunning Toyota Tacoma for $30,000.

Alma’s sales tax is 2%. This means you'll owe a total sales tax of 7.50%—$600 in city tax ($30,000 multiplied by .02) and $1650 ($30,000 multiplied by .055) in state tax. You owe a total tax bill of $2,300 on that spiffy Tacoma.

Car sales tax is levied on the purchase price of the vehicle. Unless the purchase price is suspiciously low, the value is assumed to be the car's purchase price.

Some people have the bright idea of negotiating an artificially low purchase price and then paying the difference in a side transaction. Do not attempt this; the county treasurer's office is ahead of you.

The county treasurer establishes what the car is worth on the open market (its fair market value, or FMV) by referring to the Kelley Blue Book, NADA value, or other reliable sources on used car prices.

If the county treasurer's office establishes that the car's FMV is significantly greater than its purchase price, they can opt to base the tax on the NADA assessed value.

Note that underreporting the purchase price of a vehicle in order to avoid paying sales tax is illegal.

The use tax is a percentage of a car's purchase price that is owed to the state of Nebraska when the vehicle is brought into the state for registration.

When purchasing a car out-of-state you will have to pay a 5.5% use tax (the same rate as the sales tax) when you register the car in Nebraska. On top of that, you may owe local sales taxes as well.

If you paid sales tax on car purchases in another state, Nebraska deducts that tax so that you are not taxed twice. There are three potential scenarios (leaving out local taxes for simplicity).

1. If you paid less than 5.5%, you will have to pay the difference. Let’s say you bought a used car in South Dakota for $25,000. South Dakota sales tax rates are 4%, so you paid $1,000 (.04 X $25,000) in South Dakota tax. When you go to register your car in Nebraska, your total tax bill will be $1,000 minus the $1325 you already paid in Nebraska. You can expect to pay $325 to Nebraska.
2. You paid no sales tax in another state. Let's say you bought a used car in Montana and didn’t pay sales tax, given Montana’s 0% tax rate. You’ll pay Nebraska's 5.5% use tax.
3. You paid more than 5.5% in the other state (for example, Kansas levies a 7.5% tax on every used vehicle purchase). We wish we could tell you that Nebraska will give you a refund, but no. At least they won’t charge you any more tax.

Vehicle taxes are something you just can't avoid—they are a part of our lives. Here are the only two ways we know of for you to avoid paying sales tax on a vehicle purchase.

1. Move to a state that doesn’t have a vehicle sales tax and buy a car there.

2. Qualify for a sales tax exemption in Nebraska.

Most states offer exemptions for government vehicles, religious organizations, military personnel, and other categories. For a full list of Nebraska sales tax exemptions, check with your local treasurer's office.

In addition to vehicle sales taxes, you owe other fees when buying a car and registering it in Nebraska, such as a registration fee and a car title transfer fee.

To register your vehicle at the Nebraska county treasurer’s office, you must show proof of car insurance. First-time passenger vehicle registration costs $15, plus the $10 title fee.

Nebraska's standard license plate fees are $8.20. Specialty license plates cost up to $70.

Many people believe that buying a car from a Nebraska dealer will save them money. Actually, going to a Nebraska dealer is more expensive.


We admit that dealers offer a level of convenience that is not typically available when purchasing from a private seller. After all, that is why we exist. PrivateAuto puts dealer-like convenience in the palm of your hand while also allowing you to transact with regular people like yourself.

When you buy a used car from a private seller on PrivateAuto, you avoid the doc fee and get a better deal.

If you're in the market for a used vehicle, you'll want to calculate the applicable sales tax. With PrivateAuto's used car sales tax calculator, calculating sales tax has never been easier. This free online vehicle sales tax calculator calculates the amount of tax you must pay on a used car purchase based on the combined state and local sales tax rate in Nebraska (5.5%) and the vehicle's price.

PrivateAuto is the only transactional marketplace where you can buy and sell used vehicles safely and conveniently.

Our innovative platform connects buyers and sellers and gives them all the tools to complete the deal, from in-app financing to secure messaging to integrated payments via our banking gateway, PrivateAuto Pay. You can also schedule a test drive and negotiate the price without ever disclosing your personal information.

Here are the steps to selling your car in Nebraska.
1. Gather the required paperwork for selling a vehicle in Nebraska
2. Register on PrivateAuto and get verified
3. List your car
4. Set your terms
5. Vet incoming offers
6. Choose a buyer
7. Schedule a meeting
8. E-sign documents
9. Get paid, instantly
10. Transfer car title