In Nebraska, most groceries are not taxed. Sales of food and food ingredients are generally exempt from sales and use tax.
This exemption broadly covers items commonly found in grocery stores, such as fresh produce, dairy products, meats, and most packaged goods intended for home consumption. A good rule of thumb is that if a product label includes a "Nutrition Facts" box, it is typically exempt from sales tax.
What is Considered Taxable Food in Nebraska?
While most food items are exempt, there are specific situations where food is subject to sales tax in Nebraska. These exceptions primarily involve prepared food or food sold in a specific manner:
- Prepared Foods: Food that is ready for immediate consumption, typically sold by a restaurant, tavern, caterer, or concessionaire, is subject to sales tax. This includes hot meals, sandwiches prepared to order, and salads from a salad bar.
- Vending Machine Sales: Any food or beverage item purchased through a vending machine is taxable, regardless of whether it would be exempt if purchased in a grocery store.
Examples of Exempt vs. Taxable Food Items
To provide clarity, here's a breakdown of common scenarios:
| Category | Exempt (Not Taxed) | Taxable (Taxed) |
|---|---|---|
| Grocery Store Purchases | Fresh fruits and vegetables, milk, bread, raw meat, packaged cereal, canned goods, frozen dinners (for home preparation), bottled water (sold individually). | Hot rotisserie chicken from a deli (if considered prepared), ready-to-eat sushi from a restaurant within the grocery store. |
| Restaurant/Deli | N/A | Any meal or prepared food purchased at a restaurant, coffee shop, or deli (e.g., a hot pizza, a deli sandwich, a latte). |
| Vending Machines | N/A | All items sold through a vending machine (e.g., a can of soda, a bag of chips, a candy bar). |
| Specialty Foods | Packaged dietary supplements with Nutrition Facts. | Catering services, prepared food from concession stands at events. |
It's important for consumers to understand these distinctions to accurately determine what they will pay in sales tax when purchasing food items in Nebraska. For the most precise and up-to-date information, it's always advisable to consult the official guidance from the Nebraska Department of Revenue.
