Credit card processing and merchant services in Omaha, NE
Omaha adds a 1.5% city sales tax to Nebraska's 5.5%. Restaurants and bars also owe a 2.5% occupation tax on food and drink, and it goes into the price before sales tax is figured.
Omaha's sales tax is 7%: Nebraska's 5.5% plus a 1.5% city rate, according to the City of Omaha's Finance Department. For most shops, that's the whole story. For restaurants and bars, it's half of it.
The city also levies a restaurant occupation tax on every business operating as a restaurant or drinking place in Omaha, at 2.5% of gross receipts from food and beverage sales. The Nebraska Department of Revenue explains how an occupation tax like this has to show up at checkout. It's included in the sales price before the state and local sales tax is calculated, and you can't combine it with the sales tax rate and charge customers one flat percentage.
Here's the order on an $80 food and drink tab. The 2.5% occupation tax brings the price to $82.00. Sales tax at 7% is then figured on $82.00, which is $5.74, for a total of $87.74. A register set to a single 9.5% would collect $87.60 and break the rule in the process. Before your first service, make sure your POS terminals or restaurant system apply the two taxes in that order.
Omaha had 488,797 residents on July 1, 2025, by the Census Bureau's estimate, slightly fewer than in 2020. Nebraska hasn't passed a surcharge statute that we could find, so card network limits apply here. Our Nebraska page covers them, along with how deliveries are taxed at the rate where they arrive.
Clearo prices restaurant and retail accounts on interchange-plus, with a dedicated rep and no long-term contract. Our restaurant payment processing guide covers tips and terminals, and a free statement review shows what your current setup costs you.
Rules that matter in Omaha
Restaurant and drinking place occupation tax
The City of Omaha imposes an occupation tax on every business operating as a restaurant or drinking place in the city, at 2.5% of gross receipts from the sale of food or beverages each calendar month.
The Nebraska Department of Revenue says an occupation tax must be included in the sales price before the state and any local sales tax is calculated, and a business can't combine the occupation tax rate with the sales or lodging tax rate and charge customers one flat rate.
Sources: City of Omaha Finance Department, Restaurant and drinking places tax Q and A (March 2024, PDF); Nebraska Department of Revenue, Occupation taxes
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Common questions
How does Omaha's restaurant tax work with sales tax?
Apply the 2.5% occupation tax first, then figure the 7% sales tax on the higher price. The Nebraska Department of Revenue says the occupation tax is included in the sales price before sales tax is calculated, and it can't be merged with the sales tax into one flat rate. On a $40 tab, that's $41.00 plus $2.87 in sales tax.
What is the sales tax rate in Omaha?
7%. That's the 5.5% Nebraska state rate plus Omaha's 1.5% city rate, as the City of Omaha's Finance Department lists them. Restaurants and drinking places also owe the city's 2.5% occupation tax on food and beverage sales, which is figured before the sales tax.
Does every Omaha business owe the 2.5% occupation tax?
No. The city applies it to businesses operating as a restaurant or drinking place in Omaha, on their gross receipts from food and beverage sales. A retailer that isn't a restaurant or bar charges the 7% sales tax only. If your business is somewhere in between, ask the city's Finance Department before you set up your menu prices.
Can Omaha restaurants add a credit card surcharge?
Yes, under card network rules, since Nebraska has no surcharge statute that we found. Keep it at or under 3% on Visa and 4% on Mastercard, and under your actual cost, skip debit and prepaid cards, and disclose it at the door, at the table or counter and on the receipt. Our surcharging program sets up the notices.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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