Nebraska Property Tax Relief: How to Qualify and Apply
Understand Nebraska's property tax relief measures. This guide clarifies the state's distinct pathways for relief and the specific requirements for each program.
Property taxes in Nebraska fund local government services, including school districts and municipalities, and are based on a property’s assessed value. The state has established programs to lessen this tax burden and make property ownership more affordable for certain residents.
The state offers several avenues for direct property tax relief, but these programs are not automatic. Homeowners must take specific actions to receive the benefits, which vary based on the program and who they serve.
The Homestead Exemption Program
The homestead exemption is a form of property tax relief that removes a portion of a home’s value from taxation. This program is targeted toward specific categories of homeowners, and eligibility is determined annually. The state reimburses local governments for the tax revenue lost from these exemptions. To qualify, the property must be the owner’s primary residence from January 1 through August 15 of the application year.
Eligibility for the homestead exemption is primarily for individuals who are 65 or older before January 1 of the application year. Other qualifying groups include certain disabled individuals and veterans who are totally disabled from a nonservice-connected accident or illness. Qualified disabled veterans and their unremarried surviving spouses (or those who remarry after age 57) are also eligible.
For most categories, including seniors and non-veteran disabled individuals, eligibility is subject to annual household income and home value limitations. These thresholds are based on a sliding scale, so the exemption amount decreases as income rises. A home valued at over 200% of the county’s average assessed value for single-family residences may be disqualified. Certain veteran-related categories do not have these income or home value limits.
The Property Tax Credit
Nebraska provides property tax relief through a credit system tied to the state income tax return. This credit is available to property owners who pay taxes supporting school districts and community colleges. Unlike the homestead exemption, this credit is not contingent on the owner’s age, income, or disability status.
The state government allocates a specific amount of funds each year for this relief. The credit a taxpayer receives is calculated based on the property taxes they paid to school districts and community colleges. Recent legislative changes altered how this relief is delivered for school district taxes. Beginning in 2024, this portion is applied directly to property tax statements, reducing the amount owed. The credit for community college taxes paid continues to be claimed on the state income tax return.
Information and Forms for Relief
To apply for the Homestead Exemption, homeowners must use the Nebraska Homestead Exemption Application, Form 458. This form can be obtained from the local county assessor’s office or downloaded from the Nebraska Department of Revenue’s website. Applicants will need to provide their Social Security number and property details.
Applicants must submit documentation to verify eligibility. This includes income information, often by attaching Schedule I (Income Statement) and pages from a federal income tax return. Proof of age is required for applicants over 65, and those applying based on disability may need to file Form 458B, Certification of Disability for Homestead Exemption.
For the Property Tax Credit related to community college taxes, a separate application is not required. Taxpayers can find their credit amount using the Property Tax Credit Lookup Tool on the Nebraska Department of Revenue’s website. To use the tool, you will need your property’s county and parcel ID number, found on your property tax statement.
How to Claim Your Relief
For the Homestead Exemption, the completed Form 458 and supporting documents must be filed with the local county assessor. The filing window is between February 1 and June 30 each year, and missing this deadline will result in losing eligibility for that assessment year. The county assessor’s office will review the application and notify the homeowner of its decision.
To claim the Property Tax Credit for community college taxes, the credit amount must be entered on the Nebraska Individual Income Tax Return, Form 1040N. This credit is claimed on the Nebraska Property Tax Credit, Form PTC, which is filed with your state tax return. It is a refundable credit, meaning you can receive the full amount even if it exceeds your total state income tax liability.