Nebraska Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Nebraska gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Nebraska fully exempts the homestead of veterans with a 100% permanent service-connected rating (or 100% Individual Unemployability), veterans with a 100% temporary rating, VA-assisted paraplegic/multiple-amputee veterans, and qualifying surviving spouses, with no income or home-value limits. Veterans totally disabled by a non-service-connected condition get an income-tested partial-to-full exemption. Since tax year 2022, 100% of military retired pay is excluded from Nebraska income tax; other benefits include a motor vehicle tax exemption for disabled or blind veterans, Disabled Veteran plates, a 100% tuition waiver for dependents of 100% P&T or deceased veterans, reduced-cost Game and Parks permits, and four state veterans' homes. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Nebraska

Nebraska property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Homestead exemption, Category 4V: veterans with a 100% service-connected permanent disability or a 100% Individual Unemployability rating	Veteran drawing VA compensation for a 100% permanent service-connected disability, or rated below 100% but with a 100% Individual Unemployability (IU) rating, certified/effective on or before January 1, 2026. Honorable or general (under honorable conditions) discharge; service during a statutory wartime period (e.g. WWII, Korea, Vietnam, Lebanon, Grenada, Panama, Persian Gulf Aug 2, 1990-Feb 28, 1991, Global War on Terror Sept 14, 2001-Sept 11, 2021). Must own and occupy the Nebraska homestead (residence plus up to 1 acre) from January 1 through August 15. No income limit and no home-value limit.	Full exemption of the homestead (no income or homestead value limits for Category 4V). The State reimburses the county.	File Form 458 with a VA certification of disability with the county assessor after February 1 and on or before June 30 the first time you apply, in years ending in 0 or 5, and after any change in status. No Schedule I (income statement) is required. If the veteran dies during the 5-year exemption period, the surviving spouse keeps the exemption for the rest of that period, then applies annually under Category 4S.	Nebraska Homestead Exemption Information Guide (Nebraska Department of Revenue, Feb 2026)
Homestead exemption, Category 4S: surviving spouses of qualified veterans	Unremarried surviving spouse, or one who remarried after age 57, of (a) a veteran who died because of a service-connected disability, (b) a servicemember whose death on active duty was service-connected, (c) a servicemember who died on active duty during wartime, or (d) a veteran who received VA compensation for a 100% permanent service-connected disability. Must own and occupy the homestead January 1 through August 15. No income or value limit.	Full exemption of the homestead (no income or homestead value limits for Category 4S)	File Form 458 with the county assessor every year after February 1 and on or before June 30. Include the VA certification with the first application and in years ending in 0 or 5. No Schedule I required.	Nebraska Homestead Exemption Information Guide (Nebraska Department of Revenue, Feb 2026)
Homestead exemption, Category 7: veterans with a 100% service-connected temporary disability (and their surviving spouses)	Veteran drawing VA compensation for a 100% service-connected temporary disability rating effective on or before January 1, 2026, or that veteran's unremarried surviving spouse (or one who remarried after age 57). Must own and occupy the homestead January 1 through August 15. No income or value limit.	Full exemption of the homestead (no income or homestead value limits for Category 7)	File Form 458 with the county assessor every year after February 1 and on or before June 30. A VA certification is required with the first application and in years ending in 0 or 5. No Schedule I required.	2026 Form 458, Nebraska Homestead Exemption Application and Instructions (Nebraska Department of Revenue)
Homestead exemption, Category 5: veterans whose home was substantially contributed to by the VA	Qualified paraplegic or multiple-amputee veterans whose homestead was substantially contributed to by the VA, or the unremarried surviving spouse of such a veteran. Must own and occupy the homestead January 1 through August 15. No income or value limit.	Full exemption of the homestead (no income or homestead value limits for Category 5)	File Form 458 with a VA certification with the county assessor every year after February 1 and on or before June 30. No Schedule I required.	Nebraska Homestead Exemption Information Guide (Nebraska Department of Revenue, Feb 2026)
Homestead exemption, Category 2: veterans totally disabled by a non-service-connected accident or illness	Veteran (wartime service, honorable or general discharge) totally disabled by a non-service-connected accident or illness who owns and occupies the homestead January 1 through August 15. Income-tested on 2025 household income: 100% relief up to $41,600 (single) or $47,700 (married/closely related), phasing down in 10% steps to 0% at $59,001 and over (single) or $68,701 and over (married/closely related). Subject to a home-value limit.	0-100% of the exempt amount on a sliding income scale. The maximum exempt value is 120% of the county's certified average assessed residential value (2026 examples: Douglas $362,739, Lancaster $399,660, Sarpy $412,977). The exemption is cut 10% for each $2,500 the home's value exceeds the county maximum value (225% of average, e.g. Douglas $680,135). A home $20,000 or more over the maximum gets no exemption.	File Form 458 and Form 458 Schedule I (income statement) with the county assessor every year after February 1 and on or before June 30. Include Form 458B or a VA disability certification the first year and in years ending in 0 or 5.	2026 Household Income Table (Nebraska Department of Revenue); 2026 Average Residential Value table; Homestead Exemption Information Guide (Feb 2026)

Is military retired pay taxed in Nebraska?

Nebraska state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Fully exempt. For tax years beginning on or after January 1, 2022, all military retirees may exclude 100% of military retirement benefits from Nebraska taxable income, to the extent the benefits are in federal AGI. No election or form is needed. The old Form 1040N-ML election is no longer used.	100% of military retirement benefits included in federal AGI (no dollar cap)	revenue.nebraska.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Nebraska veteran benefits

Vehicles and license plates

Nebraska: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Motor vehicle tax exemption for disabled or blind veterans	Disabled or blind veteran who served on active duty, was separated under honorable conditions, has a service-connected disability or receives VA compensation, disability retirement or pension, and is registered with the Nebraska Veterans' Registry with a VA benefit summary. Covers one motor vehicle owned and used for personal transportation.	Exemption from the motor vehicle tax on one vehicle. Request it from the County Treasurer within 30 days of purchase, or before the current registration expires when renewing. Separate from the Disabled Veteran plate application.	dmv.nebraska.gov
Disabled Veteran license plates	Veteran with an honorable or general (under honorable conditions) discharge who is at least 10% service-connected disabled and enrolled in the Nebraska Veterans' Registry	Alphanumeric plate: no plate fee. Message plate: $40 at initial application and renewed annually. Regular registration fees and taxes still apply. Numeric plates issued before January 1, 2026 must be replaced with alphanumeric plates during 2026. Plates do not grant handicapped-parking privileges.	dmv.nebraska.gov
Purple Heart license plates	Purple Heart recipients enrolled in the Nebraska Veterans' Registry, with a Nebraska certificate of title in their name	Alphanumeric plate: no plate fee. Message plate: $40 per year. Regular registration fees and taxes still apply.	dmv.nebraska.gov

Hunting, fishing and other licenses

Nebraska: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Veteran and military hunt/fish/fur permits and Disabled Veterans' Lifetime Annual Park Entry Permit (Nebraska Game and Parks Commission)	Veterans age 64 and older, deployed military, and disabled veterans (Game and Parks sets the exact criteria)	Reduced or no cost (exact prices are set by Nebraska Game and Parks)	veterans.nebraska.gov

Education

Nebraska: education for veterans
Benefit	Who qualifies	Amount	Source
Waiver of Tuition for veterans' dependents (Neb. Rev. Stat. 80-411)	Spouse, surviving spouse, or child/stepchild (until age 26, extendable to age 31 for a child who served on active duty) of a veteran the VA rated 100% permanently and totally disabled from service, who died of a service-connected disability or of an in-service injury/illness after discharge, or who was MIA/POW. The student must be a Nebraska resident meeting the school's in-state residency requirements.	100% of tuition and tuition-related fees at University of Nebraska campuses, state colleges and community colleges. Covers one community college credential plus one bachelor's degree. Graduate and professional degrees, housing, food, parking and books are not covered.	veterans.nebraska.gov
Reservist Tuition Credit	Nebraska residents serving in a Nebraska-based unit of the Active Selected Reserve	75% tuition credit (50% for graduate or professional degrees) at University of Nebraska, state colleges and community colleges	veterans.nebraska.gov

Employment

Nebraska: employment for veterans
Benefit	Who qualifies	Amount	Source
Every Veteran Gets an Interview (Nebraska Department of Veterans' Affairs hiring)	Veterans who apply for NDVA positions and check the job-search-assistance box	Veterans who are not selected for an interview get personal follow-up: resume help, advice on meeting minimum qualifications, and referrals to other state jobs	veterans.nebraska.gov

State veterans homes

Nebraska: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
State veterans' homes: Bellevue (Eastern), Kearney (Central), Norfolk, Scottsbluff (Western)	Veterans who served on active duty with an honorable or general discharge, and Nebraska National Guard members with active duty for training, who have lived in Nebraska at least 2 years during their lifetime. Spouses, surviving spouses, and Gold Star spouses and parents are also eligible under similar requirements.	Member contribution on an income/asset sliding scale from $0 to $5,549 per month. Veterans rated 70-100% service-connected may get care at no cost once VA criteria are met.	veterans.nebraska.gov

Common questions

Does Nebraska have a property tax exemption for disabled veterans?

Nebraska lists 5 veteran property tax benefits. The main one: Homestead exemption, Category 4V: veterans with a 100% service-connected permanent disability or a 100% Individual Unemployability rating. Who qualifies: Veteran drawing VA compensation for a 100% permanent service-connected disability, or rated below 100% but with a 100% Individual Unemployability (IU) rating, certified/effective on or before January 1, 2026. Honorable or general (under honorable conditions) discharge; service during a statutory wartime period (e.g. WWII, Korea, Vietnam, Lebanon, Grenada, Panama, Persian Gulf Aug 2, 1990-Feb 28, 1991, Global War on Terror Sept 14, 2001-Sept 11, 2021). Must own and occupy the Nebraska homestead (residence plus up to 1 acre) from January 1 through August 15. No income limit and no home-value limit.. Amount: Full exemption of the homestead (no income or homestead value limits for Category 4V). The State reimburses the county. (Nebraska Homestead Exemption Information Guide (Nebraska Department of Revenue, Feb 2026)).

How do I apply for the Nebraska veteran property tax exemption?

File Form 458 with a VA certification of disability with the county assessor after February 1 and on or before June 30 the first time you apply, in years ending in 0 or 5, and after any change in status. No Schedule I (income statement) is required. If the veteran dies during the 5-year exemption period, the surviving spouse keeps the exemption for the rest of that period, then applies annually under Category 4S. (Nebraska Homestead Exemption Information Guide (Nebraska Department of Revenue, Feb 2026)).

Does Nebraska tax military retirement pay?

Fully exempt. For tax years beginning on or after January 1, 2022, all military retirees may exclude 100% of military retirement benefits from Nebraska taxable income, to the extent the benefits are in federal AGI. No election or form is needed. The old Form 1040N-ML election is no longer used. Amount or limit: 100% of military retirement benefits included in federal AGI (no dollar cap) (revenue.nebraska.gov).

What other benefits do veterans get in Nebraska?

Motor vehicle tax exemption for disabled or blind veterans (dmv.nebraska.gov); Disabled Veteran license plates (dmv.nebraska.gov); Purple Heart license plates (dmv.nebraska.gov); Waiver of Tuition for veterans' dependents (Neb. Rev. Stat. 80-411) (veterans.nebraska.gov); Reservist Tuition Credit (veterans.nebraska.gov); Veteran and military hunt/fish/fur permits and Disabled Veterans' Lifetime Annual Park Entry Permit (Nebraska Game and Parks Commission) (veterans.nebraska.gov); State veterans' homes: Bellevue (Eastern), Kearney (Central), Norfolk, Scottsbluff (Western) (veterans.nebraska.gov); Every Veteran Gets an Interview (Nebraska Department of Veterans' Affairs hiring) (veterans.nebraska.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

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