Updated January 2026
Nebraska Veteran Benefits 2026
Nebraska offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in NE for 2026.
Nebraska Highlights
- Full military retirement pay tax exemption
- Homestead property tax exemptions
- Free hunting and fishing permits for disabled veterans
- Nebraska Veterans Aid Fund
Income Tax Treatment
Nebraska has a state income tax.
Military Retirement Pay: Nebraska has fully exempted military retirement pay from state income tax since tax year 2022.
Active Duty Pay: Active duty pay is exempt from Nebraska income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Nebraska does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Nebraska
Type: Full exemption at 100%
Nebraska's homestead exemption Category 4V gives a 100% exemption of the homestead's taxable value (home plus up to one acre) to veterans with a 100% service-connected PERMANENT disability OR a 100% Individual Unemployability (IU) rating. For Category 4V there are NO income limits and NO home-value limits. (Lower categories 1-3, 6 for seniors/disabled by other causes use income- and value-limited sliding scales — those are distinct.)
| VA disability rating / category | What you get |
|---|---|
| 100% service-connected PERMANENT disability (Category 4V) | 100% exemption of homestead taxable valueNo income or home-value limit. VA certification required when first applying and in years ending in 0 or 5. Effective date of rating must be on or before Jan 1 of application year. |
| 100% Individual Unemployability (IU) rating, even with <100% schedular (Category 4V) | 100% exemption of homestead taxable valueTreated the same as 100% permanent disability; IU must be certified on or before Jan 1 of the application year. No income/value limit. |
| Home substantially contributed to by the VA (Category 5) | 100% exemptionVA-assisted/adapted home; no income or value limit; covers surviving spouses. |
| 100% service-connected TEMPORARY disability (Category 7) | 100% exemptionTemporary (non-permanent) 100% rating; no income/value limit; covers surviving spouses. |
- Income limit: None for veteran categories 4V, 4S, 5, 7.
- Age requirement: None for the disabled-veteran categories.
- Surviving spouse: Yes. If a 4V veteran dies during the 5-year exemption period, the surviving spouse keeps the exemption for the remainder of that period, then must apply annually under Category 4S. Surviving spouses are also covered under categories 5 and 7. No income/value limit for 4S.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: Neb. Rev. Stat. 77-3506 (and 77-3501 et seq.) and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Nebraska Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Nebraska
Nebraska has approximately 2 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.