Nebraska Veteran Tax Exemptions 2026

Nebraska treats your VA disability compensation as fully tax-free at the state level, which means that income never touches your state return. On top of that, the state offers a tiered homestead exemption that grows as your rating climbs, giving you real property tax savings whether you're partially or fully rated. This page walks through how the exemption tiers work and what you'll need to claim them.

Does Nebraska tax VA disability income?

No. Nebraska does not tax VA disability compensation. The state treats it the same way the federal government does, which means it is left off your taxable income entirely. Whether you are rated 10 percent or 100 percent, your VA disability pay is not taxed by Nebraska.

Nebraska property tax exemption for disabled veterans

Tiered homestead exemption. Property tax exemption based on rating and income.

Even a partial rating qualifies you for a homestead exemption, and the benefit grows as your rating increases, so every step up the scale puts more money back in your pocket.

What rating do you need in Nebraska?

The size of your break depends on your combined VA rating. In Nebraska, the break is tiered, so even a partial rating can lower your property tax bill, and the amount climbs as your rating climbs. Not sure what your combined rating works out to? Run it through our VA disability calculator first, and if you are aiming for the top tier, check whether you qualify for Permanent and Total status.

How to claim your Nebraska exemption

1. Confirm your current combined rating and whether it is Permanent and Total. Your VA award letter shows both.
2. Gather your DD-214 and your VA disability award letter. Most Nebraska offices ask for both.
3. Contact your county tax assessor for the property tax exemption, and the your state tax agency or Department of Veterans Affairs for the income side.
4. File before your county deadline. Many counties require you to apply once, then renew only if your rating changes.

Always confirm the current figures and deadlines with your county assessor and the Nebraska Department of Veterans Affairs before you rely on them. Rules and dollar amounts change year to year.