Nebraska Homestead Exemption
— Nebraska’s Homestead Exemption provides relief from real estate property taxes by exempting all or a portion of the valuation of a home from taxation. The State of Nebraska reimburses the counties and governmental subdivisions for taxes lost due to homestead exemptions. The percentage of relief is based on the applicant’s income level and home valuation.
To qualify for the exemption a Nebraska homeowner must be age 65 by January 1 of the year and be the home’s owner/occupant through August 15, and fall within the income guidelines. Certain homeowners who have a disability and totally disabled war veterans and their widow(er)s may also be eligible for this annual tax break.
When determining household income, applicants must include Social Security and Railroad Retirement benefits plus any income for which they receive a Form 1099.
Current state law allows married couples to receive at least a partial exemption until their household income reaches $47,800. 100% exemption is available for married couples earning up to $32,200 and for singles with incomes up to $27,400.
The 2016 application form (Form 458) must be completed and returned to the County Assessor by June 30, 2016 for the current year’s exemption.
The maximum exempt amount is the taxable value of the homestead up to $40,000 or 100% of the county’s average assessed value of single family residential property, whichever is greater. To be eligible, the maximum assessed value of the homestead is $95,000, or 200% of the average assessed value of single family residential property in the county, whichever is greater. The exempt value will be reduced by 10% for every $2,500 that the assessed value exceeds the maximum value. If the assessed value exceeds the maximum value by $20,000 or more, the homestead is not eligible for exemption.