Nebraska Military Benefits Guide

Nebraska fully exempts military retirement pay from state income tax for tax years beginning on or after January 1, 2022. All military retirees may exclude 100% of their retired pay from Nebraska taxable income, and no application is required to claim it.

VA disability compensation is exempt from both federal and Nebraska state income tax.

Nonresident servicemembers stationed in Nebraska are not taxed by Nebraska on their military pay under the SCRA. Nebraska residents are generally taxed on active duty pay. Confirm your residency and filing status with the Nebraska Department of Revenue.

Treatment of drill and activation pay depends on residency and the nature of the orders. Consult the Nebraska Department of Revenue for your specific situation.

Veterans rated 100% service-connected disabled by the VA (and certain surviving spouses) may qualify for a Homestead Exemption that exempts all or part of the property taxes on their primary residence. The disabled-veteran category is generally not income-limited, unlike the age-based homestead categories.

The surviving spouse of a qualifying disabled veteran, or of a servicemember who died on active duty, may retain Homestead Exemption eligibility. Verify current rules with the Nebraska Department of Revenue.

Veterans whose homes were substantially contributed to by the VA (for example, a Specially Adapted Housing grant) may also qualify for a property tax exemption.

The Homestead Exemption is not automatic. File Form 458 with your county assessor each year within the state filing window (typically February through June). Income limits and exemption amounts vary by category.

Eligible members of the Nebraska National Guard can receive tuition assistance covering up to 100% of tuition at Nebraska public colleges and universities, with support also available toward private and community college tuition.

Active duty servicemembers stationed in Nebraska, along with their spouses and dependents, are eligible for resident (in-state) tuition rates at Nebraska public institutions.

Nebraska waives tuition at state colleges and universities for the children and spouses of servicemembers who died or were permanently and totally disabled in the line of duty. Eligibility is set by state statute.

University of Nebraska campuses, Bellevue University, and others participate in Yellow Ribbon or accept the Post-9/11 GI Bill. Confirm current participation with each school's veterans services office.

Terminate a Nebraska lease with 30 days written notice after receiving PCS orders or a deployment of 90 or more days.

Pre-service debts are capped at 6% interest upon written request with a copy of your orders.

Nebraska courts cannot foreclose on a servicemember's primary residence without a court order while on active duty and for a period after, and landlords cannot evict an active duty family from a primary residence without a court order.

Nebraska issues disabled veteran, Purple Heart, and other military specialty plates. Qualifying 100% service-connected disabled veterans may receive a registration fee exemption on one vehicle.

Servicemembers stationed in Nebraska may keep their home-state vehicle registration under the SCRA rather than re-registering in Nebraska.

The Nebraska Game and Parks Commission offers reduced-fee or no-fee hunting and fishing permits to resident disabled veterans, and reduced permits for active duty residents. Check current eligibility with Game and Parks.