Nebraska Property Tax Relief: Credits, Homestead, and LB 34

Nebraska property tax relief comes through three statewide credits that reduce every owner’s bill, a homestead exemption for seniors, disabled residents, and qualifying veterans, and a set of 2024 legislative caps that limit how fast local tax collections can grow. Two of the statewide credits apply automatically on your property tax statement. One requires a form with your state income tax return. The homestead exemption requires an application by June 30, 2026.

The Three Statewide Credits

Every taxable parcel in Nebraska benefits from three separate credit programs. Knowing which ones require action is where most owners lose money.

School District Property Tax Relief Credit

This is the largest program in the state, funded at a minimum of $808 million for tax year 2026.¹ It appears directly on your property tax statement as a reduction of school district taxes owed, and you don’t file anything to receive it.² Each parcel’s share is calculated based on the school district taxes levied in the county.

Property Tax Credit Act

A second automatic credit, funded at a minimum of $180 million for tax year 2026, also appears on your property tax statement.³ It’s distributed across all property types based on assessed valuation. No application.

Community College Property Tax Credit

This one is not automatic. You claim it by filing Form PTC with your Nebraska income tax return.⁴ The credit covers community college property taxes you paid and is refundable, so you can receive it even if you owe no state income tax. If you missed it on a prior return, individuals can file Form PTCX to recover the credit retroactively. The Department of Revenue provides an online look-up tool that calculates your eligible community college taxes automatically.⁵

LB 34 also created a Natural Resources District credit that covers 75% of NRD taxes levied on your property for tax year 2026, and it, too, appears on the statement without an application.³

Who Qualifies for the Homestead Exemption

The homestead exemption is Nebraska’s primary relief program for specific populations. It exempts a percentage of your home’s value from taxation, and qualifying homeowners in the lowest income brackets can receive a full 100% exemption. You must own and occupy the home as your primary residence from January 1 through August 15 of the application year.⁶

Six categories qualify:

Persons age 65 and older (Category 1). You must turn 65 before January 1 of the application year. Income limits apply.
Wartime veterans with nonservice-connected total disability (Category 2). Income limits apply.
Individuals with qualifying physical disabilities (Category 3), including permanent loss of mobility requiring a wheelchair, walker, cane, or similar aid; amputation of both arms above the elbow; or permanent partial disability of both arms exceeding 75%. Income limits apply.
Veterans with a permanent 100% service-connected disability rated by the VA, and qualifying surviving spouses (Category 4). Full exemption, no income limit and no home value cap.
Paraplegic veterans or multiple amputees whose homes were substantially contributed to by the VA (Category 5). Full exemption, no income limit.
Individuals with developmental disabilities certified by the Department of Health and Human Services (Category 6). Income limits apply.

Categories 4 and 5 stand apart because they provide a full exemption regardless of income or home value. Every other category ties the percentage to household income.⁷

An unremarried surviving spouse of a qualifying veteran can continue receiving the exemption. This includes spouses of veterans who died from a service-connected disability, service members who died on active duty during wartime, and veterans who held 100% VA disability compensation. If you remarried after age 57, you still qualify. VA certification is required with the first application and again in years ending in 0 or 5.⁸

2026 Income Limits

Your 2026 exemption percentage is based on 2025 household income, which includes wages, Social Security, pensions, interest, and other sources.⁹

Persons Age 65 and Older

100% exemption: single up to $37,000.99; married up to $43,400.99
80%: single $38,901–$40,800.99; married $45,801–$48,100.99
60%: single $42,701–$44,700.99; married $50,401–$52,800.99
40%: single $46,601–$48,500.99; married $55,101–$57,500.99
20%: single $50,401–$52,400.99; married $59,801–$62,100.99
Not eligible: single $54,301 and over; married $64,501 and over

Disabled Veterans and Disabled Individuals

100% exemption: single up to $41,600.99; married up to $47,700.99
80%: single $43,601–$45,500.99; married $50,001–$52,400.99
60%: single $47,401–$49,300.99; married $54,701–$57,000.99
40%: single $51,301–$53,200.99; married $59,401–$61,700.99
20%: single $55,101–$57,000.99; married $64,101–$66,400.99
Not eligible: single $59,001 and over; married $68,701 and over

Intermediate percentages (90%, 70%, 50%, 30%, and 10%) fill the gaps between the tiers listed above. The full table is on the Department of Revenue website.⁹

Home Value Cap

Even if your income qualifies, a high home value can reduce or eliminate your exemption. Once your homestead’s assessed value exceeds the maximum set for the year, the exempt amount drops by 10% for every $2,500 over the threshold. Exceed the maximum by $20,000 or more, and you’re ineligible.¹⁰ One exception: if you received the exemption the previous year when your home was below the maximum, your exemption carries forward at the same percentage even after the value crosses the threshold, so long as the increase wasn’t due to improvements you made.

How and When to Apply

File Form 458 with your county assessor between February 1 and June 30, 2026.⁶ Miss that window and you lose the exemption for the entire year.

Most categories must also file Nebraska Schedule I, an income statement covering all household income sources. Categories 4V, 4S, 5, and 7 skip this because those exemptions aren’t income-dependent. Married applicants report income for both spouses, and any co-owner who isn’t a spouse files a separate Schedule I.

Disability categories require additional documentation:

Category 2: Form 458B (Certification of Disability) completed by a physician, physician assistant, or advanced practice registered nurse, plus VA certification. Required with the first application and upon request.
Category 3: Form 458B with the first application and upon request.
Categories 4V and 7: VA certification with the first application and in years ending in 0 or 5.
Category 5: VA certification every year.
Category 6: Form 458B signed by the Department of Health and Human Services with the first application and upon request.

A trust-owned home can still qualify if the trust document gives you the right to occupy the property, the right to amend or revoke the trust, or the power to withdraw the property and put it in your name.⁶

Late Filing

Nebraska allows late applications in only two situations: a medical condition that prevented timely filing, or the death of a spouse during the exemption year. Either way, the late application must reach the county assessor by June 30 of the year in which that year’s property taxes become delinquent.¹¹ A medical-condition application requires Form 458L with a certification from a physician, physician assistant, or advanced practice registered nurse. A death-of-spouse application requires a copy of the death certificate. If the assessor rejects your late application, you can request a hearing before the county board of equalization.

What LB 34 Changed

The 2024 special legislative session produced LB 34, the most sweeping property tax overhaul in years. Several provisions directly affect what shows up on your tax bill through 2028.

The Property Tax Growth Limitation Act restricts how much local governments can increase property tax collections each year starting July 1, 2025. Each political subdivision starts at zero growth over the prior year, with additions allowed only for approved bonds, declared emergencies, voter-approved increases, and public safety needs. Unused authority can carry over up to 5%. The cap applies to a taxing entity’s total collections, not to any individual bill.³

School district levy caps drop sharply. The maximum falls from the previous $1.05 per $100 of assessed value to $0.40 for fiscal year 2025–26, then $0.35 for 2026–27, and $0.30 from 2027–28 onward. To offset the lost revenue, the state is transferring over $1.8 billion to the Education Future Fund for fiscal year 2025–26.³

For four assessment years beginning January 1, 2025, real property is assessed at its prior-year value, adjusted only for new improvements or destroyed structures. That freezes most valuations through January 1, 2028.³

Appealing a Denial or Assessment

If your homestead exemption is denied or you believe your property’s assessed value is too high, the first step is your county board of equalization. The board holds a public hearing and must complete its review by June 1 for most applications. Within seven days of the decision, the county clerk sends written notice to the applicant.¹²

If the board denies you, appeal to the Nebraska Tax Equalization and Review Commission (TERC) within 30 days. TERC charges a filing fee between $40 and $85 depending on the taxable value of your property: $40 for homes under $250,000, up to $85 for properties valued at $1 million or more.¹³ The hearing is formal. Bring supporting evidence: a recent appraisal, comparable sales data, or income documentation.

If you disagree with TERC’s decision, judicial review is available through the Nebraska Court of Appeals. You must file within 30 days of TERC’s final order, and the court’s review is limited to errors in the record rather than a fresh look at the evidence.¹⁴ A professional appraisal for a single-family home typically costs $300 to $600, which is worth weighing against the tax savings at stake.

1
Nebraska Legislature. Nebraska Revised Statutes 77-7305
2
Nebraska Department of Revenue. School District Property Tax Relief Credit (SDPTRC) and Tax Statement
3
Nebraska Legislature. LB34 First Special Session 2024 Committee Statement
4
Nebraska Department of Revenue. Nebraska Property Tax Credits
5
Nebraska Department of Revenue. Nebraska Property Tax Credit FAQs
6
Nebraska Department of Revenue. Nebraska Homestead Exemption Application Form 458 – 2026
7
Nebraska Department of Revenue. Nebraska Homestead Exemption Information Guide
8
Nebraska Department of Revenue. Nebraska Homestead Exemption Information Guide
9
Nebraska Department of Revenue. 2026 Household Income Table
10
Nebraska Legislature. Nebraska Revised Statutes 77-3506.03 – Exempt Amount
11
Justia Law. Nebraska Revised Statutes 77-3514.01 – Homestead Exemption Late Application
12
Cornell Law School / Legal Information Institute (LII). 350 Nebraska Admin Code Ch 40 006 – Application, County Review and Appeal Procedures for Property Tax Exemptions
13
Nebraska Tax Equalization and Review Commission. TERC Appeal Form 2025
14
Nebraska Legislature. Nebraska Revised Statutes 77-5019 – Appeals, Judicial Review, Procedure