Veteran taxes by state
Nebraska veteran taxes
How Nebraska treats military retired pay and Survivor Benefit Plan annuities in its income tax, and its property tax and vehicle registration relief for disabled veterans — from the state’s own pages.
On this page5 sections
- Military retired pay
- Exempttax year 2025
- SBP annuities
- Exempt
- Property tax
- Exemption or credit
- Vehicle registration
- Fee waiver or discount
Military retired pay in Nebraska
Exempttax year 2025Sources 1, 2, 3
Nebraska lets all military retirees exclude 100% of military retirement benefits from Nebraska taxable income to the extent included in federal adjusted gross income, for tax years beginning on or after January 1, 2022, with no age, cap or income test and no election form (Neb. Rev. Stat. § 77-2716(15)(b)). Benefits on a Form 1099-R from the Department of Defense or the Office of Personnel Management qualify; for an OPM annuity only the part attributable to uniformed service is excluded.
Survivor Benefit Plan annuities
ExemptSources 4, 3
The Department of Revenue’s guide for servicemembers states that the military retirement benefit exclusion in Neb. Rev. Stat. § 77-2716(15) includes retirement and annuity payments to a spouse, former spouse or child that are based on another person’s military service, if the benefit is reported on the taxpayer’s own Form 1099-R from the Department of Defense or the Office of Personnel Management. The statute and the 2025 Form 1040N booklet do not name the Survivor Benefit Plan.
Property tax relief for disabled veterans
Exemption or creditSources 5, 6, 7, 8
Nebraska fully exempts the homestead (a residence and up to one acre of land) of a veteran with an honorable or general (under honorable conditions) discharge who draws VA compensation for a 100% service-connected permanent disability or a total disability rating based on individual unemployability (38 C.F.R. 4.16): the exempt amount is the full taxable value, with no income or home-value limit (homestead category 4V; Neb. Rev. Stat. §§ 77-3506, 77-3501.01). The owner must occupy the home from January 1 through August 15, and the VA rating must be effective on or before January 1 of the application year. Form 458 and the VA certification go to the county assessor after February 1 and on or before June 30 when first applying, in years ending in 0 or 5, or after a change in status.
- Veterans drawing compensation for a 100% service-connected temporary disability get the same exemption but must apply every year with VA certification (category 7, § 77-3506(2)(c)); paraplegic or multiple-amputee veterans whose home was substantially paid for by the VA have a separate total exemption (category 5, §§ 77-3526 to 77-3528).
- The Department of Revenue’s guide defines a veteran for the homestead program as a person on active duty during listed periods of war or conflict, from World War II through the Global War on Terror (September 14, 2001 to September 11, 2021), with an honorable or general discharge.
Surviving spouse
- An unremarried surviving spouse, or one who remarries after age 57, of a category 4V or category 7 veteran, of a veteran who died of a service-connected disability, or of a service member whose death on active duty was service-connected or occurred during listed wartime periods keeps the full exemption, filing Form 458 each year (Neb. Rev. Stat. § 77-3506(2)(b)-(f); category 4S).
- Remarriage before age 57 ends it.
- If a category 4V veteran dies during a five-year exemption period, the spouse keeps the exemption for the rest of that period.
Vehicle registration for disabled veterans
Fee waiver or discountSources 9, 10
Nebraska exempts from the motor vehicle tax one motor vehicle owned and used for personal transportation by a disabled or blind veteran whose disability or blindness is recognized by the U.S. Department of Veterans Affairs and who was honorably discharged, once the county treasurer approves the application (Neb. Rev. Stat. §§ 60-3,185(2), 60-3,189). Registration fees are not waived: the Disabled Veteran plate (for veterans the Department of Motor Vehicles describes as 10% service-connected disabled) carries no plate fee in its standard alphanumeric form, but all registration fees and taxes still apply.
- Plate: Disabled Veteran (alphanumeric, no fee; message version $40 a year); the veteran must be enrolled in the Nebraska Veteran’s Registry; no limit on the number of vehicles with the plate.
- The motor vehicle tax exemption is separate from the plate and is requested from the county treasurer within 30 days of purchase or before the current registration expires.
- The Department of Motor Vehicles page does not address surviving spouses.
Sources
Each source was read on October 28, 2026 on the state’s own site, the normal way. The numbers in the sections above point here.
- Military Retirement Benefits Exclusion
- 2025 Nebraska Individual Income Tax and Amended Return Booklet
- Nebraska Revised Statute 77-2716
- Nebraska Income Tax for U.S. Servicemembers, Their Spouses, and Civilians Working with U.S. Forces (Information Guide)
- Nebraska Homestead Exemption (Information Guide)
- Nebraska Homestead Exemption (Information Guide), Category 4S: Surviving Spouses of Qualified Veterans
- Nebraska Revised Statute 77-3506 (Certain veterans; exemption; certain surviving spouses; application; remarriage, effect)
- Nebraska Revised Statute 77-3501.01 (Exempt amount, defined)
- Disabled Veteran Plates
- Nebraska Revised Statute 60-3,185 (Motor vehicle tax; exemptions)