Nebraska Disabled Veteran Property Tax Exemptions in 2026
Does Nebraska Exempt Disabled Veterans From Property Tax?
Nebraska gives Veterans with a 100% service-connected permanent disability a full homestead exemption with no income limit and no value cap under Neb. Rev. Stat. §77-3506. File Form 458 with the county assessor by June 30 each year. Temporary 100% disability also qualifies, but requires annual recertification. Income-limited partial relief is available for other qualifying categories. [1] [2] [3]
Nebraska Veteran Exemptions at a Glance
Choose an area to jump to the statute, calculations, application steps and important exceptions.
What Does Nebraska Law Provide?
Full exemption for permanent 100% disability. No income test. No value cap.
Which Veterans Qualify and at What Level?
Permanent 100%, temporary 100% and income-based partial relief.
What Documentation Do You Need?
Discharge character, VA disability letter and homestead occupancy.
How Do You Apply and Meet the Deadline?
File with the county assessor. June 30 deadline. Annual process.
How Much Property Tax Could You Save?
Real dollar examples for Offutt AFB, Omaha, Lincoln and Camp Ashland areas.
How Does the Exemption Affect a VA Mortgage?
Tax escrow, buying power and funding fee interaction.
Can a Surviving Spouse Keep the Exemption?
Unremarried and age-57 remarriage rules, plus service-death coverage.
Real-World Nebraska Veteran Scenarios
PCS to Offutt, existing homeowner, partial disability and surviving spouse.
What Mistakes Can Cost You the Exemption?
Missed deadlines, wrong forms and escrow miscalculations.
How Does Nebraska Compare to Neighboring States?
Side-by-side look at Iowa, Kansas, South Dakota, Colorado and Wyoming.
Frequently Asked Questions
Straight answers to common Nebraska Veteran searches.
Sources and Verification Method
Statute text, Nebraska Revenue guidance and federal rules.
Nebraska’s 100% P&T homestead exemption eliminates your entire property tax bill with no income limit and no value cap. With a statewide average effective rate of approximately 1.42%, the annual savings on a $290,000 home near Offutt AFB is substantial. File Form 458 with the county assessor by June 30. The surviving spouse provisions are among the most protective in the country.
What Does Nebraska Law Provide?
Nebraska’s homestead exemption for disabled Veterans is established by Neb. Rev. Stat. §77-3506 within the Homestead Exemption Act (§§77-3501 through 77-3529). The exemption removes the assessed value of the homestead from the tax rolls entirely for qualifying Veterans. [1] [2]
Full Homestead Exemption
Veterans with an honorable or general discharge drawing VA compensation for 100% service-connected permanent disability receive 100% of the exempt amount. No income limit. No value cap on the homestead.
Full Exemption With Annual Recertification
Veterans drawing VA compensation for 100% service-connected temporary disability also receive the full exempt amount, but must recertify annually because the rating may change.
Partial Relief for Other Qualifiers
Additional homestead exemption categories under §77-3507 and §77-3508 provide sliding-scale relief based on household income. These apply to age 65+, certain disabled persons, and Veterans in other circumstances.
What does “exempt amount” mean? Under §77-3506.03, the exempt amount equals the taxable value of the homestead (up to one acre, as defined in §77-3502). For homes exceeding the maximum value threshold, the exempt amount decreases by 10% for each $2,500 above the maximum, with total ineligibility at $20,000 over the maximum. For Veterans under §77-3506, no income limit applies to the exemption itself. [1] [5]
Which Veterans Qualify and at What Level?
Nebraska’s Veteran homestead exemption has distinct tiers depending on the nature and permanence of the disability. Understanding which category applies determines both the exemption level and the filing requirements. [1] [2] [3]
| Category | Who qualifies | Exemption level | Income limit | Recertification |
|---|---|---|---|---|
| 100% permanent disability (§77-3506) | Veteran with honorable/general discharge drawing VA compensation for 100% service-connected permanent disability | 100% of exempt amount | None | Not required after initial approval |
| 100% temporary disability (§77-3506) | Veteran with honorable/general discharge drawing VA compensation for 100% service-connected temporary disability | 100% of exempt amount | None | Annual recertification required |
| Income-based categories (§77-3507/3508) | Age 65+, certain disabled persons, or other qualifying claimants | Sliding scale: 10% to 100% based on household income | Yes, annually adjusted thresholds | Annual filing required |
What About Partial Disability Ratings?
The §77-3506 Veteran exemption requires 100% service-connected disability. Veterans with ratings below 100% do not qualify under this specific provision. However, they may qualify under the income-based categories in §77-3507 or §77-3508 if they meet age or disability criteria along with the income thresholds.
Contact your county assessor to determine which category provides the best benefit for your situation.
Individual Unemployability (IU/TDIU)
The statute references Veterans drawing compensation “because of one hundred percent service-connected permanent disability” or a “total disability rating” under federal regulations. If the VA pays you at the 100% compensation rate due to IU, ask your county assessor whether your specific VA documentation meets the statutory test for the full exemption.
For a broader look at how 100% disabled Veteran benefits work across housing, taxes and VA programs, that overview covers the full picture. [1] [2]
What Documentation Do You Need?
The county assessor requires specific proof of Military service, disability status and homestead occupancy. Collect these before starting the application. [1] [2] [3]
What You Need to Establish
- Honorable or general (under honorable conditions) discharge
- VA disability letter confirming 100% service-connected disability (permanent or temporary)
- Ownership of the homestead property
- Occupancy as your primary residence from January 1 through August 15
- Property must be a residence, mobile home or qualifying dwelling on no more than one acre
Situations Requiring a Closer Look
- Less-than-honorable discharge: the statute requires honorable or general under honorable conditions
- TDIU: verify your VA documentation expressly confirms the required compensation level
- Mobile or manufactured home: qualifies as a homestead under §77-3502
- Leased land: a home on leased land within Nebraska can qualify
- January 1 through August 15 occupancy: you must own and occupy during this period
How Do You Apply and Meet the Deadline?
File Nebraska Form 458 (Homestead Exemption Application) with the county assessor where your property is located. If claiming disability, also file Form 458B (Certification of Disability). [2] [3] [4]
Nebraska has 93 counties. Near Offutt AFB, file with the Sarpy County Assessor (Bellevue, Papillion) or Douglas County Assessor (Omaha). Search “[Your County] assessor Nebraska.”
Available at the county assessor’s office or from the Nebraska Department of Revenue. Form 458B certifies the disability for homestead exemption purposes.
DD-214 or equivalent service records, VA disability letter confirming 100% service-connected disability, and proof of homestead occupancy.
The application must be filed on or before June 30. Missing this date means no exemption for that tax year. There is no late-filing provision for new applications.
Permanent disability holders do not need to recertify annually after the initial approval. Temporary disability holders must recertify each year. Confirm your specific situation with the assessor.
After the exemption is approved and reflected on your tax bill, request an escrow reanalysis from your lender. Do not assume the servicer automatically adjusts.
Application Documents
- Form 458 (Homestead Exemption Application)
- Form 458B (Certification of Disability) if applicable
- Form 458, Schedule I (Income Statement) for income-tested categories
- VA disability rating letter
- DD-214 or service records
- Proof of homestead occupancy
After Initial Approval
For permanent 100% disability under §77-3506, annual recertification of disability status is not required. If you move to a new homestead within Nebraska, file Form 458T (Transfer Application) with the new county assessor by August 15. [4]
If your disability status changes, notify the county assessor. A downgrade from permanent to a lower rating changes your exemption category.
The Nebraska Department of Revenue Homestead Helpline at (888) 475-5101 can answer procedural questions. For questions about how property tax exemptions interact with your VA home loan, speak with a loan specialist who understands the escrow implications. [2] [3]
How Much Property Tax Could You Save?
Nebraska’s effective property tax rate is among the highest in the country. The full 100% exemption eliminates the entire tax bill on your homestead. The dollar value depends on your property’s assessed value and the local tax rate. [1] [2] [7]
| Location near | County | Illustrative home value | Illustrative effective rate | Annual savings (100% exempt) | Monthly equivalent |
|---|---|---|---|---|---|
| Offutt AFB (Bellevue) | Sarpy | $290,000 | 1.69% | $4,901 | $408 |
| Offutt AFB (Omaha side) | Douglas | $290,000 | 1.66% | $4,814 | $401 |
| Lincoln (Guard/Reserve) | Lancaster | $288,000 | 1.45% | $4,176 | $348 |
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The examples above use illustrative effective rates that vary by taxing district. Actual rates depend on the combined levies of county, city, school district and special districts applied to your property’s assessed value. Confirm your actual tax bill with the county assessor. [2] [7]
Income-Based Partial Relief
Veterans who do not qualify under §77-3506 but meet the income-based categories under §77-3507 or §77-3508 receive a sliding-scale exemption. The percentage ranges from 10% to 100% of the exempt amount, depending on household income. The income thresholds are adjusted annually for inflation. [1] [8]
| Household income range (married/related) | Exemption percentage | Illustrative savings on $290,000 at 1.42% |
|---|---|---|
| $0 to $34,700 | 100% | $4,118 |
| $34,701 to $38,100 | 80% to 90% | $3,294 to $3,706 |
| $38,101 to $43,200 | 50% to 70% | $2,059 to $2,883 |
| $43,201 to $50,000 | 10% to 40% | $412 to $1,647 |
| Above $50,000 | 0% | $0 |
Use the Disabled Veteran Property Tax Calculator to model your specific situation. State rules, not the calculator, control the assessor’s determination.
How Does the Exemption Affect a VA Mortgage?
A confirmed property tax exemption reduces the tax escrow portion of your monthly payment and can improve your lender’s housing-expense calculation. It does not change the interest rate, reduce principal or guarantee an approval. [9] [10]
Before Tax Exemption
Illustrative $290,000 purchase at 6.5%, $0 down. Principal and interest: $1,833. Insurance: $150. Tax escrow: $408.
The full tax escrow adds meaningfully to the housing expense ratio.
After 100% Exemption Approved
Same loan terms. Tax escrow reduced to $0 for the qualifying homestead.
Actual escrow may still include cushion requirements or non-exempt assessments.
VA Funding Fee Interaction
The property tax exemption and the VA funding fee exemption are separate benefits. Veterans receiving VA compensation for a service-connected disability are generally exempt from the VA funding fee. For a first-time $290,000 VA purchase with less than 5% down, the funding fee at 2.15% equals $6,235. That is a one-time purchase cost, not an annual property tax saving. [9]
For a complete picture of housing costs and qualification, see How Much VA Loan Can I Afford? and the VA residual income chart for the Midwest region. Nebraska falls in the Midwest residual income region, and eliminating several hundred dollars per month in taxes adds directly to your residual income calculation. [10]
Can a Surviving Spouse Keep the Exemption?
Nebraska’s surviving spouse provisions under §77-3506 are more protective than many states, including a limited remarriage exception. [1]
| Situation | What the statute provides | Practical next step |
|---|---|---|
| Unremarried surviving spouse of qualifying Veteran | Retains the full homestead exemption under the same terms | Continue filing Form 458 with the county assessor |
| Surviving spouse who remarries after age 57 | Retains the homestead exemption despite the new marriage | Notify assessor of the marriage and confirm continued eligibility |
| Surviving spouse who remarries before age 57 | Loses the homestead exemption. Must notify the county assessor within 30 days | Explore other homestead categories based on age or income |
| Spouse of Veteran who died from service-connected disability | Qualifies for the exemption even if the Veteran was not drawing 100% at death | Submit VA documentation of service-connected death |
| Spouse of Servicemember who died on active duty (service-connected) | Qualifies for the exemption | Submit Military death records and service-connection evidence |
The age-57 remarriage provision is relatively unusual among states. It allows a surviving spouse to rebuild their personal life without losing the property tax benefit. The 30-day notification requirement for remarriage before age 57 is a firm deadline. [1]
Real-World Nebraska Veteran Scenarios
These cases illustrate how the Nebraska homestead exemption, VA loan qualification and escrow interact in practice. None is a guarantee of approval. [1] [9] [10]
100% P&T Veteran Buying Near Base
A Veteran PCSing to Offutt AFB purchases a $300,000 home in Bellevue. The Veteran files Form 458 immediately after closing and before the June 30 deadline. After approval, the property tax drops to $0. Combined with the VA funding fee exemption, the first-year benefit is substantial. The PCS move guide covers other relocation considerations.
Already Own, Never Filed
A 100% P&T Veteran in Omaha has owned their home for three years but never filed Form 458. They file before June 30 and receive the exemption for the current tax year. There is no retroactive benefit for prior years. The Veteran requests an escrow reanalysis from their mortgage servicer after the exemption appears on the tax bill.
70% Disability, Income Qualifies
A Veteran with a 70% VA disability rating does not qualify under §77-3506. However, the Veteran is age 65 and has household income below the income threshold. The county assessor processes the application under §77-3507 and grants an 80% exemption of the homestead value based on income. The Veteran still saves meaningfully on property taxes.
Unremarried Spouse in Lincoln
After the Veteran’s death, the unremarried surviving spouse continues to file Form 458 annually and retains the full homestead exemption. Three years later, the spouse remarries at age 59. Because the remarriage occurs after age 57, the spouse retains the exemption. [1]
Nebraska’s 2026 BAH rates for Offutt AFB and other locations are a useful reference when comparing housing costs with the exemption factored into the payment. [10]
What Mistakes Can Cost You the Exemption?
The most expensive mistakes are missing the June 30 deadline, assuming the exemption is automatic and failing to request an escrow adjustment after approval. [1] [2] [10]
Before You File
- Confirm your VA letter shows 100% service-connected permanent or temporary disability
- Verify your discharge is honorable or general under honorable conditions
- Confirm you own and occupy the homestead from January 1 through August 15
- Get Form 458 and Form 458B from the county assessor or Nebraska Department of Revenue
- File by June 30 with dated copies retained
- If temporary disability, understand annual recertification requirements
Before You Budget for a Home
- Use actual tax bills, not the statewide average rate
- Do not assume the exemption applies before the assessor approves it
- Separate annual property tax savings from the one-time VA funding fee exemption
- Confirm escrow cushion and non-exempt assessment charges with your servicer
- Confirm residual income requirements for the Midwest VA region
- Get the lender’s payment estimate with and without the exemption
How Does Nebraska Compare to Neighboring States?
Veterans considering homes near the Nebraska border or comparing PCS destinations benefit from understanding how each neighboring state handles disabled Veteran property tax relief.
| State | 100% P&T exemption | Income limit (100% P&T) | Filing frequency | Detail page |
|---|---|---|---|---|
| Nebraska | Full homestead exempt, no value cap | None | Initial + recertification for temporary; permanent may carry forward | This page |
| Iowa | 100% exemption on homestead | Varies by category | Initial application, then monitored | Iowa exemptions |
| Kansas | Refund-based (K-40SVR) | Varies | Annual refund claim | Kansas exemptions |
| South Dakota | Property tax exemption for disabled Veterans | Varies by program | Varies | South Dakota exemptions |
| Colorado | Partial exemption on homestead for qualifying disabled Veterans | None for qualified Veterans | Initial + periodic | Colorado exemptions |
| Wyoming | Property tax exemption available | Varies by program | Varies | Wyoming exemptions |
Each state’s program has different forms, deadlines and eligibility rules. If you are PCSing or choosing a retirement location, compare the detail pages above alongside VA disability compensation rates, state Veteran benefits and local housing costs before making a decision. [7]
Frequently Asked Questions
Quick answers to the questions Nebraska Veterans ask when evaluating property tax relief in 2026.
Do 100% disabled Veterans pay property tax in Nebraska?
No, if approved. Veterans with 100% service-connected permanent or temporary disability who file Form 458 with the county assessor and meet the homestead requirements pay $0 property tax on their homestead. There is no income limit for this exemption. [1]
What is the Nebraska property tax exemption filing deadline?
June 30 each year. Missing the deadline means paying full property taxes for that year. There is no late-filing provision for new applications. [2]
Do I have to re-apply every year?
Veterans with permanent 100% disability do not need to recertify disability annually after the initial approval. Veterans with temporary 100% disability must recertify each year because their rating may change. Confirm your specific situation with the county assessor. [1]
Is there an income limit for the Nebraska Veteran property tax exemption?
Does IU (Individual Unemployability) qualify for the full Nebraska exemption?
The statute requires a Veteran drawing VA compensation for 100% service-connected disability. If the VA pays you at the 100% rate due to IU, ask your county assessor whether your specific VA documentation meets the statutory test. Do not assume eligibility from the TDIU label alone. [1]
Does the exemption apply to manufactured or mobile homes?
Yes. Under §77-3502, a homestead includes mobile homes and manufactured homes. The exemption applies to the home and surrounding land up to one acre. [6]
Can a surviving spouse keep the Nebraska Veteran property tax exemption?
Yes. An unremarried surviving spouse retains the full exemption. A surviving spouse who remarries after age 57 also retains it. Remarriage before age 57 ends the exemption. [1]
Does the property tax exemption change my VA mortgage rate?
No. The exemption reduces the tax/escrow portion of your monthly payment after the assessor approves it and your servicer conducts an escrow reanalysis. Mortgage principal and interest remain unchanged. [10]
Can I combine the property tax exemption with the VA funding fee exemption?
Yes. They are separate state and federal benefits. The property tax exemption is a recurring annual benefit; the VA funding fee exemption is a one-time savings at closing. [9]
Can I get the exemption on a rental property or second home?
No. The Nebraska homestead exemption applies only to your primary residence that you own and occupy. Rental properties, second homes and investment properties do not qualify. [6]
What happens if my disability rating changes?
Notify the county assessor. If your rating drops below 100%, you lose the §77-3506 exemption but may qualify under income-based categories. If your rating increases to 100%, file under §77-3506 for the next application period. [1]
Will my lender automatically adjust my escrow after the exemption?
Not automatically. After the exemption appears on your actual tax bill, request an escrow reanalysis from your mortgage servicer. The servicer will recalculate and adjust your monthly payment, potentially issuing a refund for overpayment. [10]
Sources and Verification Method
This article prioritizes current Nebraska statute, the Nebraska Department of Revenue guidance, VA.gov and the CFPB. [1] [2] [9]
- Neb. Rev. Stat. §77-3506. Homestead exemption for Veterans with 100% service-connected disability (permanent and temporary), surviving spouse provisions, discharge requirements.
- Nebraska Department of Revenue: Homestead Exemption. Application forms, income tables, category requirements and helpline.
- Nebraska Department of Veterans’ Affairs: Tax Benefits. Overview of homestead exemption and motor vehicle tax exemption for disabled Veterans.
- Neb. Rev. Stat. §77-3509.01. Homestead exemption transfer requirements, August 15 transfer deadline, county assessor procedures.
- Neb. Rev. Stat. §77-3506.03. Maximum value provisions: exempt amount reduced by 10% per $2,500 over maximum; total ineligibility at $20,000 over.
- Neb. Rev. Stat. §77-3502. Homestead definition: residence or mobile home on no more than one acre, ownership and occupancy January 1 through August 15.
- MyArmyBenefits: Nebraska. Summary of Nebraska Military and Veteran benefits including property tax exemptions.
- Neb. Rev. Stat. §77-3508. Income-based homestead exemption: sliding-scale percentage from 10% to 100% based on household income, annually adjusted thresholds.
- U.S. Department of Veterans Affairs. VA purchase funding fee rates (2.15% first use, less than 5% down), exempt borrower categories, closing cost treatment.
- Consumer Financial Protection Bureau. Escrow-account analysis timing, shortage and surplus definitions, servicer obligations.
What We Verified
Enacted statutory language for §77-3506, §77-3502, §77-3506.03, §77-3508 and §77-3509.01. Surviving spouse provisions including age-57 remarriage rule. Homestead definition and one-acre limit. Form numbers and filing deadlines. VA funding fee rates and CFPB escrow rules.
What Must Be Checked Locally
Property assessed value, actual combined levy rate, current-year income thresholds (adjusted annually), maximum home value threshold, county assessor procedures and your specific VA documentation. A statewide article cannot verify a particular parcel’s tax status.
Know Your Nebraska Tax Exemption Before You Choose a Mortgage.
File Form 458 with your county assessor, confirm the exemption on your tax bill, then ask a VA loan specialist to model your complete housing payment with verified tax savings.