Short-Term Rental Taxes in Nebraska: Complete STR Investor Guide
2.46–6.64% graduated income tax (phased reductions underway) | Conforms to federal bonus depreciation | 5.5% state sales tax + local occupation taxes | Top markets: Omaha (Berkshire Hathaway week, College World Series), Lincoln, Lake McConaughy | Declining tax rate trend favors acting now on cost segregation
Nebraska is not a major vacation rental destination, but the state has meaningful STR activity driven by Omaha (a major conference city with unique demand events), Lincoln (University of Nebraska, Husker football), and outdoor recreation around Lake McConaughy in the Sandhills. Nebraska's tax rules are investor-friendly — full bonus depreciation conformity and a declining income tax rate trend.
Nebraska State Income Tax
Nebraska's top income tax rate is 6.64% — one of the higher rates in the Midwest. However, Nebraska has enacted phased reductions bringing the rate down toward a flat rate over coming years. For STR investors, cost segregation deductions that reduce current-year Nebraska income are particularly valuable when locking in savings at today's higher rate before reductions take effect — the state tax savings per dollar of deduction are greatest now.
Nebraska Sales Tax and Lodging Taxes
| County / Market | State Sales Tax | Local Occupation Tax | Approximate Total |
|---|---|---|---|
| Douglas County (Omaha) | 5.5% | 2.5% | ~8% |
| Lancaster County (Lincoln) | 5.5% | 1.75% | ~7.25% |
| Keith County (Lake McConaughy / Ogallala) | 5.5% | 1% | ~6.5% |
| Hall County (Grand Island) | 5.5% | 1.5% | ~7% |
| Scotts Bluff County (Scottsbluff) | 5.5% | 1.5% | ~7% |
| Rural counties | 5.5% | 0–1% | ~5.5–6.5% |
Nebraska STR Markets
Omaha is Nebraska's most compelling STR market. The Berkshire Hathaway Annual Meeting each May draws 40,000+ shareholders, creating a massive 2–3 day demand spike with extraordinary ADRs across all accommodation types. The College World Series (NCAA baseball) each June brings sustained multi-week demand. Year-round conference and event business at the CHI Health Center keeps baseline occupancy healthy.
Lake McConaughy — Nebraska's largest reservoir — is the state's primary water recreation attraction near Ogallala. The lake attracts boaters, campers, and outdoor enthusiasts from across Nebraska and neighboring states. STR cabins and lakefront properties are limited in supply but see strong summer demand. Lake McConaughy properties have the best cost segregation profiles in the state due to dock infrastructure and outdoor amenity packages.
Cost Segregation for Nebraska STR Investors
Nebraska's full bonus depreciation conformity means cost segregation deductions are fully recognized at both federal and state levels. Nebraska's declining tax rate also means acting sooner rather than later on cost segregation maximizes the state-level benefit at current higher rates. For urban Omaha properties, personal property ratios tend to be 15–20%, but the dollar value justifies studies for properties above $400,000. For Lake McConaughy vacation properties, outdoor amenities push ratios to 20–25%.
Estimate Your Nebraska STR Tax Savings
Nebraska's full bonus depreciation conformity and declining tax rates favor acting now on cost segregation. Get your free estimate.
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