Sales tax on labor in Nebraska: taxed on repairs to things, not on building repairs and new construction; installation depends on the job

Repairing a thing in Nebraska

Taxed. Labor to repair or install a thing that is not attached to the building is taxable (motor vehicle repair labor is the exception).

• “Charges for installation and repair labor are taxable when the item of property being installed, repaired, or replaced is taxable and is not annexed to real property.” — Reg-1-082, Labor, no date on the page

Repairing a home or building in Nebraska

Not taxed. Contractor labor on a building is not taxable since October 1, 2007. Materials are taxed according to the contractor's registered option; an Option 1 contractor must list labor separately or the whole bill is taxed. Cleaning a furnace, AC, ducts or drains is a taxable building-cleaning service, not contractor labor.

• “No. Contractor labor charges are not taxable as of October 1, 2007.” — Nebraska Construction Contractors FAQs (Nebraska Department of Revenue), no date on the page
• “Yes. Building cleaning services includes any work done to clean a fixture that has been annexed to real estate. This includes cleaning a furnace, air conditioner, heat pump, duct work, sewer, and drains located in or attached to a building.” — Sales Tax on Certain Services FAQs, no date on the page

Installation work in Nebraska

It depends. Installing something that gets attached to the building (e.g. a built-in dishwasher) is non-taxable contractor labor. Installing live plants is taxable. What it turns on: whether the item is annexed to real property; for Option 1 contractors, whether labor is separately stated.

• “No. Since a built-in dishwasher is annexed to real estate, the general rules on taxing labor to install tangible personal property do not apply. The person "installing" the dishwasher is a contractor.” — Nebraska Construction Contractors FAQs — built-in dishwasher, no date on the page
• “Charges for installation and repair labor are taxable when the item of property being installed, repaired, or replaced is taxable and is not annexed to real property.” — Reg-1-082, Labor, no date on the page

New construction in Nebraska

Not taxed. Labor on new construction is not taxable.

• “No. Contractor labor charges are not taxable as of October 1, 2007.” — Nebraska Construction Contractors FAQs (Nebraska Department of Revenue), no date on the page

Listing labor separately on the bill in Nebraska

Changes the answer. For an Option 1 contractor, labor on real property is only tax-free if it is listed separately. For repairs to things (not attached), the labor is taxable even if listed separately.

• “No. Contractor labor charges are not taxable as of October 1, 2007.” — Nebraska Construction Contractors FAQs (Nebraska Department of Revenue), no date on the page
• “No. Contractor labor charges are not taxable as of October 1, 2007. However, if an Option 1 contractor does not separately state its contractor labor charges on the customer's invoice, the entire charge for the building materials and labor is taxable.” — Nebraska Construction Contractors FAQs (Nebraska Department of Revenue), no date on the page

Materials on jobs in Nebraska

What Nebraska's own pages say about the materials:

• “No. Contractor labor charges are not taxable as of October 1, 2007.” — Nebraska Construction Contractors FAQs (Nebraska Department of Revenue), no date on the page

Trade services Nebraska taxes

The services Nebraska's own pages name as taxed, each in the page's words:

• Pest control: “Charges for pest control services performed before, during, or after construction are subject to tax.”
• AC, heat pump, ducts and drains): “Building cleaning services includes any work done to clean a fixture that has been annexed to real estate. This includes cleaning a furnace, air conditioner, heat pump, duct work, sewer, and drains located in or attached to a building.”
• Installing live plants (landscaping): “Labor charges to install live plants are taxable.”

Where Nebraska's list of services comes from

• “Yes. Building cleaning services includes any work done to clean a fixture that has been annexed to real estate. This includes cleaning a furnace, air conditioner, heat pump, duct work, sewer, and drains located in or attached to a building.” — Sales Tax on Certain Services FAQs, no date on the page
• “Services performed by landscapers which are tax exempt include, but are not limited to: Tree trimming; lawn mowing; applying fertilizer or weed control to live plants; aeration; raking; snow” — Nebraska Sales and Use Tax Guide for Landscapers, page date: November 17, 2022

Check with the Nebraska Department of Revenue

Before you bill: check with the Nebraska Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Nebraska with every state's answer, or with its neighbours just below.

Next door to Nebraska

• Colorado: home repair not taxed, installation depends
• Iowa: home repair depends, installation depends
• Kansas: home repair depends, installation depends
• Missouri: home repair not taxed, installation depends
• South Dakota: home repair taxed, installation depends
• Wyoming: home repair not taxed, installation depends

Official sources for Nebraska

• Nebraska Construction Contractors FAQs (Nebraska Department of Revenue) — no date shown
• Reg-1-082, Labor — no date shown
• Sales Tax on Certain Services FAQs — no date shown
• Nebraska Sales and Use Tax Guide for Landscapers — November 17, 2022

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