Disabled Veteran Property Tax Exemption in Nebraska (2026)

Last reviewed August 26, 2026. Every figure, form and deadline on this page is re-checked against the state’s own government sources once a quarter, and the date above is updated when we do it.

If you have a 100 percent permanent and total service-connected disability rating, or a 100 percent Individual Unemployability rating, Nebraska exempts your entire homestead’s taxable value from property tax. That is Category 4V of the state’s homestead exemption program, and unlike most of the internet’s summaries of it, there is no dollar cap and no income test on it. You claim it on Form 458 with your county assessor.

Veterans with a lower rating, or a total disability the VA does not treat as service-connected, fall into a different, capped and income-tested category. Below I show you exactly which category you land in and why the “$50,000” figure you may have seen does not apply to a 100 percent rating.

How much is the Nebraska exemption worth?

Category	Who	Exempt amount	Income or value limit?
4V	Veteran with a 100% permanent service-connected disability, or a 100% Individual Unemployability (IU) rating	100% of the home’s taxable value	None
4S	Unremarried surviving spouse of a qualifying veteran, or one killed on active duty	100% of the home’s taxable value	None
5	Paraplegic or multiple-amputee veteran whose home was substantially contributed to by the VA, and unmarried surviving spouse	100% of the home’s taxable value	None
7	Veteran with a 100% service-connected temporary disability, and surviving spouse	100% of the home’s taxable value	None
2	Veteran totally disabled by a non-service-connected accident or illness	Greater of 120% of the county’s average assessed residential value, or $50,000, then reduced on the income scale	Both
3	Non-veteran with a qualifying physical disability (loss of mobility, certain amputations)	Same 120%/$50,000 formula, income-scaled	Both
1	Age 65 or older	Greater of 100% of average assessed value, or $40,000, income-scaled	Both

The number that actually matters if you are rated 100%

Nebraska statute defines “exempt amount” differently for each category. For the age and general disability categories (1, 2, 3, 6) it is a formula tied to a percentage of the county’s average assessed residential value, with a dollar floor. But for Category 4V, 4S and 7, the statute is a single sentence: the exempt amount “shall mean the taxable value of the homestead.” There is no percentage, no floor, and no ceiling. A $600,000 home with a 100 percent rating is exempt in full, the same as a $150,000 home.

Why the $50,000-or-so figure keeps showing up

The 120%-of-average-value-or-$50,000 formula is real, and it is the number that governs Category 2 (non-service-connected total disability) and the general disability categories. Some summaries of Nebraska’s program apply that cap to every disabled veteran, which understates what a 100 percent service-connected veteran actually gets. The Department of Revenue’s county-by-county average value table shows what that capped formula produces where it does apply: in Douglas County the 120% figure for 2025 was $346,714, in Lancaster County it was $383,056, and in Sarpy County it was $399,390. Those numbers do not apply to you if you are in Category 4V, 4S, 5 or 7.

How that turns into a tax bill depends on your county’s levy. A full exemption on the taxable value means the county treasurer’s bill for that parcel goes to zero for the state and local property tax that would otherwise apply; the county does not send you a check, it simply does not bill you, and the state reimburses the local taxing subdivisions for the lost revenue.

Who qualifies in Nebraska?

To claim the uncapped veteran exemption in Nebraska (Category 4V) you need all of these:

• An honorable or general (under honorable conditions) discharge.
• A 100 percent permanent and total service-connected disability rating from the VA, or a 100 percent Individual Unemployability (IU) rating, with an effective date on or before January 1 of the year you are applying for.
• Own and occupy the home as your homestead from January 1 through August 15 of the application year.

The homestead is your residence or mobile home and up to one acre of surrounding land. Property held solely in the name of a corporation, partnership or LLC does not qualify, but a life estate, a land-contract purchase, or a joint tenancy interest does.

If your rating is under 100 percent

Category 4V has no partial tier. A 70 percent or 90 percent rating does not qualify for it. Two other paths exist depending on your situation:

• Category 2 covers a veteran who is totally disabled, but by a non-service-connected accident or illness. It is capped at the larger of 120% of your county’s average assessed residential value or $50,000, and phased down on the income table below, the same income test used for age 65 and older applicants.
• Category 5 covers a paraplegic or multiple-amputee veteran whose home was substantially built, purchased or adapted with VA assistance. That category is fully exempt like 4V, regardless of your percentage rating, because the exemption attaches to VA-adapted housing rather than a disability percentage.

No income test for the fully exempt categories

Nebraska’s 2026 household income table applies to Categories 1, 2, 3 and 6. It does not apply to 4V, 4S, 5 or 7. If you are in one of those four categories, your income, retirement pay, or VA disability compensation has no bearing on your eligibility or the size of the exemption.

Surviving spouses

An unremarried surviving spouse of a Category 4V veteran, or one who remarries after turning 57, qualifies under Category 4S: the same full exemption, filed annually. If the veteran dies during the middle of a five-year filing cycle, the surviving spouse keeps the exemption through the rest of that cycle before switching to the annual 4S filing. Category 4S also covers the unremarried spouse of a service member who died of a service-connected disability or died on active duty.

Can the exemption be used before closing?

In Nebraska, no. Not for the year you buy. Nebraska ties eligibility to being the owner of record and occupying the home from January 1 through August 15 of the year you claim. Buy in 2026 and the earliest year you can claim is 2027: you file Form 458 between February and June of 2027, and the exemption shows up on the property tax statement your county treasurer sends in December 2027.

Four states put a pre-purchase determination in the statute. Nebraska is not one of them

State rule. Four states let a qualifying veteran get something in writing from the taxing authority before they own the home:

• Virginia: file the normal exemption paperwork plus documentation of the purchase agreement and the commissioner of the revenue must process it and send an approval or denial letter, with the exemption amount, within 20 business days. Va. Code § 58.1-3219.6(B). The exemption itself takes effect only after you become the owner.
• Maryland: you may apply for a specific dwelling you intend to purchase, and the Department of Assessments and Taxation must send a preliminary approval or denial, with the amount, within 15 business days. Md. Code, Tax-Property § 7-208(d)(5). No second application is needed once you own it.
• Utah: a qualifying disabled veteran claimant may apply before owning the residence with a real estate purchase contract, filed in the county where the home sits, and the county must send a receipt with preliminary approval or denial and the calculated amount within 15 business days. Utah Code § 59-2a-502(5).
• Alabama: for closings on or after October 1, 2026, the tax assessing official issues a tentative certificate of permanent and total disability before purchase, within 20 days, and the statute says a settlement agent or loan closing officer may not consider the homestead ad valorem taxes when calculating debt-to-income once you hand over that certificate. Ala. Code § 40-9-21.3.

One correction worth having, because it gets repeated a lot: outside of Alabama these laws bind the county or the state tax office, not your lender. They force the taxing authority to answer you in writing before closing. They do not order a lender to waive or exclude the tax. Alabama is the only one of the four that reaches into the loan file itself. North Carolina has a bill that would add a prequalification process, House Bill 94, which passed the House 112 to 0 in May 2025 and has sat in Senate Rules since. It is not law, so do not plan around it.

In Nebraska it is a lender decision, so shop it

Lender overlay and market practice. There is no Nebraska statute telling the taxing authority to pre-approve you before you own the home, so whether this benefit helps you qualify comes down to lender policy. Here is what that looks like in practice, from lender guidance we collected directly in August 2026:

• Some lenders will use the reduced tax figure before closing, and some will not. One wholesale lender told us plainly it will consider a veteran real estate tax exemption and a reduced property tax number in the qualifying payment, as long as underwriting gets the local exemption rules and proof you meet them. If the documentation is short, underwriting uses the full tax amount instead. Another wholesaler checks it state by state and county by county on every single closing. If your lender says no, that is not the final answer on the benefit. It is that lender’s answer. Ask another one.
• Every lender will require proof of eligibility if the lower tax is doing work in your file. If the reduced tax is what lowers your debt ratio or raises your residual income, expect to document it: your VA rating decision or award letter showing the qualifying disability, the taxing authority’s own published exemption rules, and usually the completed exemption application. One lender’s VA guide requires proof of 100 percent disability from VA plus a copy of the completed county application for property tax exemption, and where the application has to be notarized it takes an unsigned copy up front and conditions it to be signed at closing.

Lender overlays apply everywhere. State permission is not lender permission. One large investor allows the anticipated reduced tax for qualifying only for primary residences in California, Florida, Maryland, Texas, Utah and Virginia, and only with proof the veteran applied to the taxing authority before the note date. Nebraska is not on that list.

Practically, ask your loan officer two questions before you write an offer: will you use a reduced tax figure to qualify me, and will you waive the tax escrow. Different lenders give different answers on the same file, and that is normal, not a mistake.

What we can do instead: waive the escrow

If the exemption cannot be counted yet, the fallback is to not escrow the taxes at all, so your monthly housing expense is not carrying twelve months of a tax bill that is about to shrink. VA does not require escrows, so this is a lender and investor decision, and many will allow it on a strong file. There are lenders that will waive the tax escrow on a VA loan even when the property taxes have not been waived yet, so this is a real option and not a rare favor. Some will waive it with no restrictions at all, others want the eligibility proof and the correct paperwork in the file first. Waiving escrow does not require the taxing authority to approve anything, which is why it is usually the easier ask of the two. Understand the tradeoff: with no escrow account, you pay the taxing authority directly and you are on your own for those tax bills until the exemption is actually approved, and approval can take a while. Budget for it and pay the bill on time; a delinquent tax bill on a home you just bought is an expensive way to save a few dollars of monthly payment.

One more VA rule to know, because it runs the other way. On estimating taxes, Chapter 4 says “If taxes are expected to increase, use the increased amount.” There is no matching VA instruction that lets an underwriter write down your taxes, which is why the reduction is always a lender option and never a VA entitlement. The Chapter 4 text is here if you want to read it.

Plan for the gap between closing and approval

These applications take a while to process, and the taxing authority’s calendar does not wait for your loan. A tax bill can come due between your closing date and the day your exemption is approved, and you are the owner, so that bill is yours. That can include taxes attributable to the period the prior owner held the home. One lender’s VA guide makes it explicit and requires a signed letter of explanation from the veteran borrower stating they are solely responsible for the property taxes owed for the prior owner. Keep the money set aside and do not assume the first bill will be reduced, especially if you waived escrow and Nebraska is billing you directly.

How to apply in Nebraska, step by step

1. Get Form 458, the Nebraska Homestead Exemption Application, from the Nebraska Department of Revenue (PDF download) or your county assessor.
2. Get your VA disability certification. For Category 4V, submit a VA award letter or certification showing either the 100 percent permanent service-connected rating or the 100 percent IU rating, with an effective date on or before January 1 of the application year. This is required the first year you apply and again in every year ending in 0 or 5. You can also use Form 458B (PDF download) if your county wants the state’s own certification form for a physician-certified disability category instead, though the VA award letter is what a veteran typically uses.
3. File with your county assessor, after February 1 and on or before June 30 of the application year. Use the Department of Revenue’s statewide county assessor directory to find your county’s office, address and phone number for all 93 counties.
4. Watch the deadline. A county board can extend it to July 20 by majority vote on a written request, and there are narrow late-filing exceptions for a spouse’s death or a documented medical condition using Form 458L (PDF download). Do not count on either as your plan.
5. Moving to a new home mid-year? If you already filed for your old homestead and buy a new one before August 15, file Form 458T, Application for Transfer (PDF download), with the new county’s assessor by August 15.
6. You do not refile every year in Category 4V, 4S, 5, 7 (with exceptions). Once approved, Categories 4V, 4S, 5 and 7 file a certification only in the first year and years ending in 0 or 5, unless your status changes (a move, a new VA rating, a marriage). Category 7 is the exception; that one is filed annually because it covers a temporary rating that can change.

Can you get a refund of prior year taxes?

Nebraska’s process is not framed as a refund window the way some states allow one year of retroactive relief. Instead, once you are approved, the exemption applies going forward from the year you correctly filed, and there is a formal three-year review and correction process running the other direction: the Tax Commissioner can review household income reported on a homestead application for three years after December 31 of the application year, and if a discrepancy is found and your exemption would have been reduced, you are notified and can dispute it before any correction is finalized.

If you discover you reported income or medical expenses incorrectly and it worked against you, you have the same three-year window to ask the Department of Revenue to reconsider your homestead exemption determination, and if income tax returns are affected, they need to be amended too.

The practical takeaway for a veteran moving into Category 4V for the first time: get your VA certification filed correctly the first year, because there is no simple one-year lookback if you miss the June 30 deadline, only the narrow late-filing exceptions in the application section above.

Other Nebraska programs for disabled veterans

The homestead exemption is the big one for a disabled veteran’s house payment, but Nebraska runs a few other programs worth knowing about.

• Nebraska state income tax on military retirement (state). Nebraska allows a full exclusion of military retirement benefit income from state income tax, and VA disability compensation is not taxable income to begin with under federal law.
• County veteran service officers (county). Nebraska counties maintain veteran service officers who help file VA disability claims, connect veterans to emergency assistance, and answer questions about state benefits including this exemption. Your county assessor’s office can point you to the county veteran service officer if you are not sure who that is locally.
• Disabled Veteran designation on your driver’s license or state ID (state). The Nebraska Department of Motor Vehicles can add a “veteran” or “disabled veteran” designation to a license or ID for veterans with proof of service and, where applicable, VA disability documentation. It is not a tax benefit, but several county and municipal fee waivers reference it.
• Specially Adapted Housing grants (federal). The VA’s Specially Adapted Housing and Special Home Adaptation grants help build or modify a home for certain service-connected disabilities. Getting one of these grants is also the trigger for Nebraska’s Category 5 full exemption if the VA substantially contributed to the home.

Nebraska disabled veteran property tax FAQs

How much is Nebraska’s disabled veteran property tax exemption worth?

If you have a 100 percent permanent and total service-connected rating, or a 100 percent Individual Unemployability rating, Nebraska exempts the entire taxable value of your homestead. There is no dollar cap and no maximum home value on that exemption. That is different from the state’s other homestead categories, which are capped and phased out by income.

Why do some guides quote a $50,000 or $110,000 cap for Nebraska veterans?

That cap is real, but it applies to Category 2 (a veteran totally disabled by a non-service-connected accident or illness) and to the general disability categories, not to a veteran drawing 100 percent service-connected compensation. Nebraska law is explicit that Category 4V, the 100 percent service-connected category, has no income limit and no homestead value limit. Older regulations and some aggregator pages blur the two, and it makes the state’s own exemption look smaller than it is.

Do I need a 100 percent rating in Nebraska?

For the uncapped exemption, yes: a 100 percent permanent and total service-connected disability rating, or a 100 percent Individual Unemployability rating with an effective date on or before January 1 of the year you apply. A lower rating does not qualify for Category 4V. If you are totally disabled from a cause the VA does not rate as service-connected, look at Category 2 instead, which is capped and income-tested.

Is Nebraska’s veteran exemption means tested?

Not for Categories 4V, 4S, 5 or 7. Nebraska’s own Homestead Exemption Information Guide states there are no income and no homestead value limits for those categories. Categories 1, 2, 3 and 6, which cover age 65-plus and non-service-connected disability, do use a sliding income scale.

What is the Nebraska filing deadline?

File Form 458 with your county assessor after February 1 and on or before June 30 of the application year. Category 4V does not have to refile every year, only in the first year and in years ending in 0 or 5, unless something about your status changes.

Can I get the exemption on a house I am buying right now?

Not for the current tax year. Nebraska requires you to be the owner of record and to occupy the homestead from January 1 through August 15 of the year you claim. Buy the home in 2026 and the earliest year you can claim is 2027, filed between February and June of 2027.

Can a surviving spouse keep the Nebraska exemption?

Yes, if unremarried, or if remarried after age 57. Category 4S covers the surviving spouse of a veteran who qualified under Category 4V, died of a service-connected disability, or died on active duty. If a Category 4V veteran dies mid-cycle, the spouse keeps the exemption through the rest of that five-year filing cycle before switching to an annual 4S filing.

Where to go next

• Disabled Veteran Property Tax Exemption Guide, every state’s exemption, form and deadline in one directory
• Property tax discounts for veterans on VA disability, the national overview
• Funding Fee Waivers and Refunds Guide, the fee is waived outright at a 10 percent rating or higher, and can be refunded if you already paid it
• VA loans with Carlos Scarpero
• Nebraska Department of Revenue, Homestead Exemption page, forms and current guidance
• Neb. Rev. Stat. 77-3506, the veteran exemption statute, and 77-3501.01, which defines the exempt amount by category
• Directory of all Nebraska county assessors