Occupation Tax Overview
Occupation tax is a tax on certain trades and professions. It is usually a license fee levied by the government or a proportion of gross income paid by service providers.
Nebraska Tax ID Application
To get a tax ID number in Nebraska, complete an Application for Taxpayer Identification Number (TIN) form from the Nebraska Department of Revenue website. Submit the completed form to the Department of Revenue with a copy of your driver’s license or state ID.
Starting a Small Business in Nebraska
Steps for starting a small business in Nebraska include:
- Choose the business structure
- Register the business with the Secretary of State
- Obtain permits and licenses
- Set up accounting systems and open business banking accounts
- Learn tax requirements and register with state agencies for taxes
Nebraska LLC Taxation
Nebraska LLC owners must pay self-employment tax on business earnings they withdraw at a rate of 15.3%. Business expenses can be deducted when calculating tax owed.
Nebraska Sales and Property Taxes
- State sales tax rate: 5.5%
- Average local sales tax rate: 1.45%
- Property tax rate for homes: 1.61%
- Groceries are exempt from sales tax
Tax Deductions in Nebraska
Common tax deductions for self-employed individuals in Nebraska include home office expenses, medical insurance premium deductions, and travel costs.
Nebraska Occupation Tax Details
- Corporation Occupation Tax: 2.5%
- Franchise Tax
- Some cities have additional local occupation taxes
- Occupation taxes cannot be deducted on federal returns
Tax ID Application and Small Business Setup
To apply for a tax ID number in Nebraska, complete the TIN application form and submit it with a copy of your driver’s license or state ID. Steps to start a small business in Nebraska involve choosing a structure, registering, getting permits and licenses, opening business bank accounts, and learning tax requirements.