Nebraska property taxes are assessed and collected by your county based on the market value of your property, with rates set by overlapping local taxing bodies like school districts, counties, and cities. Since 2024, state-funded credits appear directly on your tax statement rather than on your income tax return, which can meaningfully cut what you actually owe. The practical work for you comes down to five things: understanding your assessment, applying the credits you qualify for, meeting payment deadlines, protesting a valuation you disagree with, and claiming the homestead exemption if you’re eligible.
How Your Tax Bill Is Calculated
Your county assessor sets the “actual value” of your property, defined by statute as the most probable price it would bring in an open-market sale between a willing buyer and seller.1Nebraska Legislature. Nebraska Code 77-112 – Actual Value, Defined Residential and commercial property is assessed at 100% of that market value. The assessor can arrive at the figure through comparable sales, the income the property generates, or replacement cost.
Each local taxing entity that overlaps your parcel sets its own levy, expressed as a dollar amount per $100 of assessed value. To estimate your bill, divide your assessed value by 100 and multiply by the combined levy of every jurisdiction that taxes you. A home assessed at $250,000 in an area with a combined levy of $2.10 per $100 would owe $5,250 before credits.
State law caps some of these levies. School districts cannot exceed $1.05 per $100 of taxable value, and natural resources districts top out at 4.5 cents per $100.2Nebraska Legislature. Nebraska Code 77-3442 – Property Tax Levies; Maximum Levy; Exceptions
Agricultural and horticultural land follows different rules. Land actively used for farming or ranching is assessed at 75% of actual value, and at only 50% of actual value for school district bond levies approved on or after January 1, 2022.3Nebraska Legislature. Nebraska Code 77-201 – Property Taxable; Valuation; Classification
Credits That Reduce Your Bill Automatically
Nebraska’s 2024 reform under LB 34 created the School District Property Tax Relief Act, which routes state money to counties that then apply the credit against the school district portion of your bill. For tax year 2026, the minimum statewide pool is $808 million.4Nebraska Legislature. Nebraska Code 77-7305 – Disbursement to Counties; Property Tax Administrator; State Treasurer You don’t apply for it. It shows up on your property tax statement.
Your share depends on how much of your bill goes to school districts relative to all school district taxes on real property in your county.4Nebraska Legislature. Nebraska Code 77-7305 – Disbursement to Counties; Property Tax Administrator; State Treasurer Because school levies are usually the largest piece of a Nebraska property tax bill, this credit tends to be substantial. If you also receive the homestead exemption, the school credit applies to whatever school tax remains after the exemption.5Nebraska Legislature. Legislative Bill 34
The separate Nebraska Property Tax Credit Act adds another $445 million in relief for tax year 2026.6Nebraska Legislature. Nebraska Code 77-4212 – Disbursement to Counties; Property Tax Administrator; State Treasurer Before LB 34, the school credit was claimed on your Nebraska income tax return as a refundable credit; it is now applied directly on the property tax statement.7Nebraska Department of Revenue. Nebraska Property Tax Credit FAQs If you were in the habit of claiming it on your return, don’t claim it twice.
Homestead Exemption for Seniors, Disabled Residents, and Veterans
The homestead exemption is state-funded relief for three groups: people age 65 or older, people with qualifying disabilities, and certain disabled veterans and their unremarried surviving spouses.8Nebraska Legislature. Nebraska Code 77-3501 to 77-3529 – Homestead Exemption The state reimburses local governments for the lost revenue.9Nebraska Department of Revenue. Chapter 45 – Homestead Exemption Regulations
How much is exempted depends on household income. For 2026 (based on 2025 income), a single person age 65 or older with income under $37,001 gets 100% relief; the percentage phases down and disappears above $54,300. Married or closely related applicants get 100% relief under $43,401, phasing out above $64,500. A single disabled veteran qualifies for 100% relief with income under $41,601, phasing out above $59,000.10Nebraska Department of Revenue. 2026 Household Income Table
Home value is also capped. For applicants 65 or older, the maximum qualifying value is 200% of the average assessed value of single-family homes in your county, or $95,000, whichever is greater. For disabled individuals the cap is 225% of the county average or $110,000. Above the cap, the exemption shrinks by 10% for every $2,500 over the limit and disappears entirely once you’re $20,000 above.11Nebraska Department of Revenue. Homestead Exemption Maximum Value
File with your county between February 2 and June 30 every year. If you miss, the county board can extend the deadline to July 20 by majority vote, but you have to ask in writing. If your spouse died during the application year or a medical condition kept you from filing on time, you can file late by June 30 of the following year.12Nebraska Department of Revenue. Nebraska Homestead Exemption Information Guide A new application is required every year.
Payment Deadlines and Delinquency
Property taxes become due on December 31 of the assessment year, payable in two halves. In Douglas, Lancaster, and Sarpy counties, the first half becomes delinquent on April 1 and the second half on August 1. In every other county, the delinquency dates are May 1 and September 1.13Nebraska Legislature. Nebraska Code 77-204 – Real Estate Taxes; When Delinquent
Interest starts running the day a payment goes delinquent. For 2025 through 2026 the rate is 8% per year.14Nebraska Department of Revenue. Interest Rate Assessed on State Taxes The Tax Commissioner recalculates it every two years, based on the federal short-term borrowing rate rounded to the nearest whole percent, plus three points.15Nebraska Legislature. Nebraska Code 45-104.02 – Interest; State of Nebraska; Delinquent Taxes; Special Assessments; Credits or Refunds Some counties accept partial payments held in escrow by the treasurer, applied once the balance covers at least half the current tax or the full delinquent amount.16Nebraska Legislature. Nebraska Code 77-1704.02 – Collection of Taxes; Partial Payments; When Authorized Ask your county treasurer whether that option is available.
If You Let Taxes Go Unpaid
Unpaid taxes can eventually cost you the property. The county treasurer publishes a list of properties subject to tax sale once a week for three consecutive weeks starting in early February, in a legal newspaper and on the Department of Revenue’s website.17Nebraska Legislature. Nebraska Code 77-1804 – Real Property; Delinquent Taxes; List; Publication; Notice; Expenses Investors buy tax sale certificates, which represent your delinquent debt, not ownership of the property.
You can redeem by paying the delinquent taxes, any subsequent taxes paid by the certificate holder, and statutory interest on both.18Nebraska Legislature. Nebraska Code 77-1824 – Tax Sale Certificate; Redemption For most properties, the certificate holder cannot start foreclosure for three years after the sale; for vacant and abandoned properties, two years. After that window opens, the holder has nine months to file in district court, where the case proceeds like a mortgage foreclosure.19Nebraska Legislature. Nebraska Code 77-1902 – Tax Deed; Right of Holder to Foreclosure
Protesting Your Valuation
If your assessed value looks too high, file a protest with your county board of equalization using Nebraska Department of Revenue Form 422, available from the county clerk or the Department of Revenue website.20Nebraska Department of Revenue. Nebraska Department of Revenue Form 422 – Property Valuation Protest Use a separate form for each parcel.
Three items are mandatory: a legal description of the property, your requested valuation, and a written explanation of why the change is warranted. Leave any out and the protest is dismissed.20Nebraska Department of Revenue. Nebraska Department of Revenue Form 422 – Property Valuation Protest A professional appraisal, a recent closing statement, or clear photographs of damage or conditions the assessor didn’t see all strengthen the case.
File Form 422 with the county clerk on or before June 30.21Nebraska Legislature. Nebraska Code 77-1502 – Board; Protests; Form; Report; Notification Hearings run June 1 through July 25. Douglas, Lancaster, and Sarpy counties can extend the hearing deadline to August 10 by resolution.22Nebraska Department of Revenue. Nebraska Department of Revenue – County Clerk and County Board of Equalization Calendar The county clerk sends written notice of the board’s decision.
Appealing to TERC
If the county board denies your protest, you can appeal to the Nebraska Tax Equalization and Review Commission. The deadline is August 24, or September 10 if the county used the extended hearing window.23Nebraska Legislature. Nebraska Code 77-1510 – Appeal to Tax Equalization and Review Commission Only Douglas, Lancaster, and Sarpy counties can adopt that extension. Filing fees scale with assessed value and run from $40 to $85.24Nebraska Tax Equalization & Review Commission. Appeal Process
You submit the TERC appeal form, a copy of the county board’s decision from the county clerk, and the filing fee. Mail or in-person delivery to the commission’s Lincoln office is accepted; fax is not. If you got a separate valuation change notice from the assessor under a different statutory provision and protested that, the appeal deadlines shift, generally to October 15, or October 30 with an extension.25Nebraska Tax Equalization & Review Commission. About Us Miss the window and you lose the right to appeal that tax year.
Personal Property Tax for Business Owners
Nebraska also taxes depreciable tangible personal property, which covers business equipment, machinery, and fixtures rather than household goods. If you own, lease, or lease out any depreciable tangible personal property on January 1, file a personal property return with the county assessor where the property sits by May 1.26Nebraska Department of Revenue. Nebraska Personal Property Return
Property brought into Nebraska between January 1 and June 30 must be reported by July 31. Late filings carry a 10% penalty on tax due for property added after May 1 but before July 1, and 25% for property added on or after July 1.26Nebraska Department of Revenue. Nebraska Personal Property Return New business owners often miss this one.