Nebraska Disabled Veteran Benefits: Property Tax, Vehicle Exemptions, Tuition & More

If you are a disabled veteran living in Nebraska, the state has built a strong package of benefits for your service. The biggest is a homestead property tax exemption that can wipe out your property tax bill if you're rated 100% service-connected disabled. Beyond that: a motor vehicle tax and fee exemption, free disability plates, a full tuition waiver for your children, and free lifetime hunting, fishing, and state park permits.

Here is the plain-English rundown of what Nebraska offers, who qualifies, and how to apply.

Nebraska Disabled Veteran Property Tax Exemption (the big one)

Nebraska's homestead exemption is a property tax relief program run by the Nebraska Department of Revenue. It exempts part or all of your home's assessed value from property taxes — and for totally disabled veterans, that can mean no property tax at all on your home and up to one acre of land.

Who qualifies for the full 100% exemption

You qualify for a full, 100% exemption regardless of your home's value or your income if the VA pays you at the 100% rate for a service-connected condition, or you're individually unemployable (IU) and paid at that rate. Income limits don't apply — that matters if you own a higher-value home or have income beyond your VA check.

Other qualifying categories

Nebraska also offers partial relief to veterans below the 100% level, plus relief for surviving spouses. These categories work by different rules:

There is also a category for veterans whose home was substantially purchased or modified with VA funds for a service-connected disability (for example, paraplegia or multiple amputations) — that homestead is also fully exempt.

How to apply

1. Use Form 458, Nebraska Homestead Exemption Application, from the Nebraska Department of Revenue or your county assessor.
2. Own and occupy the home from January 1 through August 15 of the tax year.
3. File with your county assessor between February 1 and June 30, including a VA Certification of Disability (required again in years ending in 0 or 5).

Once approved, you generally reapply each year (or every five years in some categories). Call the homestead helpline at 888-475-5101 if you're unsure which category applies to you.

Motor Vehicle Tax & Fee Exemption (the new one)

Nebraska offers a motor vehicle tax and fee exemption on one vehicle for disabled and blind veterans — a benefit separate from the license plate. It waives the state's motor vehicle tax and motor vehicle fee on a single vehicle you own and use for personal transportation, which can save you hundreds of dollars each year.

Who qualifies

You qualify if you served on active duty with an honorable or general (under honorable conditions) discharge and have a service-connected disability (at any rating), or receive VA compensation, disability retirement benefits, or a VA pension.

This exemption is available at any service-connected rating level — not just 100%. Blind veterans qualify too.

What it does and doesn't cover

The exemption applies only to the Motor Vehicle Tax and Motor Vehicle Fee, and to one vehicle only — choose your highest-value vehicle. You still pay charges like the license plate fee, any sales tax, and any local wheel tax.

How to apply

1. Register with the NDVA Military & Veterans' Registry first — this is step-zero for all Nebraska vehicle benefits. The DMV and county treasurer verify your eligibility through this registry, so register at veterans.nebraska.gov with your DD-214 and VA benefit summary, then allow time for your status to reach the DMV database.
2. Contact your county treasurer where the vehicle is registered and state that you qualify for the disabled-veteran motor vehicle tax exemption on that vehicle.

Note: active duty servicemembers and surviving spouses of deceased veterans do not currently qualify for this particular benefit — the exemption is for the qualifying veteran.

Nebraska Disabled Veteran License Plates

You are eligible for a Disabled Veteran license plate if you served in the U.S. Armed Forces with a service-connected disability rating of at least 10% — one of the lowest thresholds in the country.

The two plate options

The standard disabled-veteran plate carries no additional plate fee beyond normal registration costs. A personalized message (up to five characters) has a separate fee, 75% of which funds the Nebraska Veteran Cemetery System Operation Fund.

When choosing your plate, know this

• You must be enrolled in the NDVA Military & Veterans' Registry, and the DMV verifies your rating through that database.
• The standard disabled-veteran plate does not give you disabled parking privileges — the wheelchair-symbol version requires proof of a permanent disability with medical certification to use accessible parking.

Nebraska also offers a Purple Heart plate (first set exempt from the plate fee) and a Gold Star Family plate for surviving family of a servicemember who died on active duty.

Income Tax: VA Pay Is Tax-Free, and Retirees Get a Full Break

Here is the simplest fact in this guide: your VA disability compensation is tax-free at the federal level, and Nebraska does not tax it either. You never report your VA disability payments as Nebraska taxable income.

Beyond that, military retirement pay is fully exempt — Nebraska lets all military retirees exclude 100% of their retirement benefits from Nebraska taxable income to the extent they're in your federal adjusted gross income, with no special election needed. It applies automatically when you file your Nebraska return.

Other tax-friendly rules for military families

• VA disability retirement pay for injury or sickness from active service is not taxable income.
• DIC (the survivor benefit for families of servicemembers who died in service or from a service-connected cause) and Survivor Benefit Plan annuities are not taxed.
• Nebraska National Guard pay and Social Security benefits can be excluded from Nebraska income tax in qualifying situations.

Education: A Full Tuition Waiver for Your Dependents

Nebraska offers the Waiver of Tuition program — a standout military-family benefit covering 100% of tuition and tuition-related fees at the University of Nebraska, Nebraska state colleges, and Nebraska community colleges for the dependents of qualifying veterans.

Who is the benefit for

The waiver is for the spouse, surviving spouse, or children (biological, adopted, or stepchildren) of a veteran who is rated 100% permanently and totally disabled from a service-connected cause, died from a service-connected disability or after discharge from a service injury or illness, or was classified missing in action or a prisoner of war. The student must be a Nebraska resident meeting in-state tuition requirements at a participating school.

How much does it cover

In plain terms, it covers one community-college credential plus one bachelor's degree, with children's eligibility generally ending at age 26 (extendable to 31 if the child served on active duty after age 18).

How to apply

1. Submit the NDVA Application for Waiver of Tuition with the veteran's DD-214 and the dependent's birth or marriage certificates.
2. Have the educational institution complete its portion, then send the packet to the Nebraska Department of Veterans' Affairs before the term starts — the waiver is not retroactive.

Nebraska also offers a Reservist Tuition Credit for Nebraska National Guard and Reserve members serving in a Nebraska-based unit.

Outdoor Recreation: Free Hunting, Fishing & State Park Access

Nebraska is a great outdoor state, and disabled veterans get real breaks enjoying it through the Nebraska Game and Parks Commission.

Free Disabled Veteran Lifetime Hunting, Fishing & Fur Harvest Permit

Eligible disabled veterans can get a free lifetime small game hunting, fishing, and fur harvest permit that includes all state stamps. You qualify if you have a 50% or more service-connected disability rating, or a 100% non-service-connected disability rating while receiving a VA pension.

Free Disabled Veteran Lifetime Park Entry Permit

Using the same eligibility criteria, you can also get a free lifetime park entry permit for free entry to Nebraska state parks.

Other recreational options for veterans

To apply for the disabled veteran permits, have a VA Veteran Service Center Manager sign your application, then submit it to the Nebraska Game and Parks Commission. Residents deployed out-of-state may also be eligible for a discounted one-time combination permit.

Employment Preference

Nebraska's state employment veterans hiring preference adds points to your passing score on state hiring exams if you're a qualifying veteran, an active-duty spouse, a disabled veteran, or the spouse of a 100% disabled veteran. An additional 5% is added for a disabled veteran — 10% total if you also get the base preference.

The Nebraska Veteran Employment Services program through the Department of Labor offers priority of service, career counseling, resume help, and job placement referrals.

Frequently Asked Questions

Are Nebraska disabled veterans exempt from property tax?

Veterans rated 100% service-connected disabled (or paid at that rate under Individual Unemployability) can get a full homestead exemption regardless of income or home value. Other disability categories may qualify for a partial, income-based exemption. Apply with Form 458 through your county assessor between February 1 and June 30.

Is the disabled veteran motor vehicle tax exemption available to surviving spouses?

Currently no. The motor vehicle tax and fee exemption is for the qualifying disabled or blind veteran. Surviving spouses and active-duty members do not qualify under current law — verify with your county treasurer if your situation changes.

Does Nebraska tax military retirement pay?

No. Nebraska lets military retirees exclude 100% of their retirement pay from Nebraska taxable income, to the extent it's in federal adjusted gross income. VA disability compensation is also tax-free.

Is there a tuition benefit for children of disabled veterans in Nebraska?

Yes. The Waiver of Tuition program covers 100% of tuition and tuition-related fees at Nebraska public colleges and universities for the spouse and children of veterans who are 100% permanently and totally disabled, died of a service-connected cause, or were captured or missing. It covers one community-college credential plus one bachelor's degree.

Your Next Steps

Here is how to start claiming what you're owed, in order of impact:

1. File for the homestead exemption — the single largest benefit. Contact your county assessor for Form 458 and your VA Certification of Disability (file between February 1 and June 30).
2. Register with the NDVA Military & Veterans' Registry at veterans.nebraska.gov — this unlocks the vehicle tax exemption and disabled-veteran plate.
3. Claim the motor vehicle tax exemption through your county treasurer on one personal vehicle, and request your Disabled Veteran plate.
4. Check the Waiver of Tuition if your spouse or children are or will be in college, and apply for your free lifetime hunting/fishing and park permits through Nebraska Game and Parks if you have a 50% or higher rating.

Every benefit here requires you to take the first step — none apply automatically. Start with the registry and the homestead form, and you'll be on your way to the recognition and relief Nebraska owes you for your service.