Nebraska Tax Rates Will Rise in Three Cities Jan. 1

Residents of Winside, Eagle, and Hay Springs will see higher local sales tax rates starting at the beginning of 2027.

Updated on Sept. 21, 2026 in Taxes

Bold flat-color editorial illustration of a heavy block resting on stacked plates, evoking municipal tax policy changes. — Nebraska residents in Winside, Eagle, and Hay Springs will face increased local sales tax rates beginning Jan. 1, 2027. AI Illustration. Upload story photo >

Live Poll

Is the local tax environment in your area getting better or worse for your household budget?

The Nebraska Department of Revenue has confirmed local sales and use tax rate adjustments set to take effect on Jan. 1, 2027. Households in specific municipalities will face these new tax burdens as part of the state's updated local revenue policies.

Why it matters

These adjustments alter the total cost of taxable purchases for residents in the affected communities, directly impacting monthly household spending. The changes reflect updated local fiscal requirements that will shift the final price at the register for shoppers in these areas.

Starting Jan. 1, 2027, the state sales and use tax remains 5.5 percent, but residents in Winside will face a new 1 percent local tax. Meanwhile, shoppers in Eagle and Hay Springs will see their local rates climb to 1.5 percent from the current 1 percent.

The players

Nebraska Department of Revenue

The state agency responsible for overseeing tax collection, rate updates, and the enforcement of sales and use tax compliance for Nebraska households.

The details

When consumers purchase taxable goods in these Nebraska villages and cities, the local sales tax is applied in addition to the consistent 5.5 percent state rate. This means that a total sales tax calculation will now include either a 1 percent or 1.5 percent local surcharge, depending on the municipality. Because these are point-of-sale taxes, the increased cost is realized immediately upon completing a transaction at local retailers.

Jan. 1, 2027: Local sales and use tax rate changes take effect.

Money Landscape

These changes reflect the ongoing cycle of municipal revenue adjustments permitted under the Nebraska state sales and use tax framework. While the state-level tax remains anchored at 5.5 percent, local governments continue to exercise their authority to modulate local rates.

If you live in Winside, Eagle, or Hay Springs, budget for a slight increase in the total cost of taxable purchases beginning in January. Review your planned large-ticket expenditures to determine if completing a purchase before the Jan. 1 deadline could provide savings.

The takeaway

The higher rates in these three cities represent a permanent shift in local purchasing costs for the coming year. Residents should track these local tax updates and discuss any significant changes in their household tax exposure with a qualified professional.