Nebraska Homestead Exemption: How Omaha Seniors and Disabled Homeowners Cut Property Taxes
Nebraska's homestead exemption can wipe out some or all of the property tax on the home you live in, with the state paying the county directly. It's open to homeowners 65 and older, certain disabled homeowners and qualifying veterans. Here's how Omaha and Douglas County residents qualify, how income and home value limits work, and what to do now for the 2027 filing season.
AT A GLANCE
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How the exemption works
The Nebraska Department of Revenue (DOR) calls the homestead exemption a property tax relief program. Instead of a refund, it exempts part or all of your home's value from tax. When an exemption is granted, the DOR guide says, the state pays the tax directly to the county treasurer. If you get a partial exemption, you pay the rest.
You must apply every year in most categories. Your county assessor usually mails a preprinted Form 458 to prior-year applicants in February, but DOR stresses that filing on time is your responsibility. Missing the deadline counts as giving up the exemption for that year.
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Who can apply
DOR's February 2026 Information Guide lists these categories:
Category | Who it covers | Income and value limits? |
|---|---|---|
1 | People 65 or older before January 1 of the application year | Yes |
2 | Veterans totally disabled by a non-service-connected accident or illness | Yes |
3 | People with a qualifying permanent physical disability | Yes |
4V | Veterans with a 100% permanent service-connected disability or a 100% individual unemployability rating | No |
4S | Surviving spouses of qualified veterans | No |
5 | Paraplegic or multiple-amputee veterans whose home the VA substantially paid for, and their surviving spouses | No |
6 | People with a developmental disability | Yes |
7 | Veterans with a 100% service-connected temporary disability, and their surviving spouses | No |
What counts as a physical disability
For Category 3, the guide lists only these:
a permanent physical disability with loss of all mobility, so that you can't get around without a mechanical aid (braces, crutches, cane, walker or wheelchair) or a prosthetic device
amputation of both arms above the elbow
a permanent partial disability of both arms over 75%
DOR notes that qualifying for Social Security disability doesn't automatically qualify you for the homestead exemption. Category 3 applicants file Form 458B, completed by a physician, physician assistant or advanced practice registered nurse, in the first year and whenever asked. For Category 6, Form 458B is completed by the Division of Developmental Disabilities at the Department of Health and Human Services.
Owning and living in the home
You must be an owner-occupant from January 1 through August 15. Owners include the owner of record, a surviving spouse of the owner, a land-contract buyer in possession, joint tenants and tenants in common, someone who kept a life estate after deeding the home away, and certain trust beneficiaries (send a copy of the trust). A home held only in the name of a corporation, partnership or LLC doesn't qualify. Form 458 also asks whether you're a U.S. citizen or qualified alien.
Leaving home for health reasons, such as a nursing home or assisted living stay, doesn't disqualify you as long as you show you intend to return. The guide points to signs like leaving furniture in place and not selling, leasing or renting the house. There's no time limit on that absence.
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The income test
For Categories 1, 2, 3 and 6, your relief percentage depends on household income from the previous year. DOR uses last year's income because assessors must finish property lists by December 1, before the current year's tax returns are filed.
Household income starts with federal adjusted gross income for you, your spouse and any other owner-occupants, then adds:
Social Security or railroad retirement not included in AGI
Nebraska adjustments that increase AGI (Form 1040N, line 12)
Interest and dividends from Nebraska and local government bonds
Any net operating loss carryforward deducted on your federal return
Then subtract medical and dental expenses that exceed 4% of that total. These are out-of-pocket costs for health insurance premiums (not employer plans) and care from licensed providers, including insulin and prescriptions but not over-the-counter medicine. Social Security retirement counts even if you don't file a tax return.
2026 relief percentages
Relief | 65+ single | 65+ married or closely related | Disabled single | Disabled married or closely related |
|---|---|---|---|---|
100% | up to $37,000.99 | up to $43,400.99 | up to $41,600.99 | up to $47,700.99 |
90% | $37,001–$38,900.99 | $43,401–$45,800.99 | $41,601–$43,600.99 | $47,701–$50,000.99 |
80% | $38,901–$40,800.99 | $45,801–$48,100.99 | $43,601–$45,500.99 | $50,001–$52,400.99 |
70% | $40,801–$42,700.99 | $48,101–$50,400.99 | $45,501–$47,400.99 | $52,401–$54,700.99 |
60% | $42,701–$44,700.99 | $50,401–$52,800.99 | $47,401–$49,300.99 | $54,701–$57,000.99 |
50% | $44,701–$46,600.99 | $52,801–$55,100.99 | $49,301–$51,300.99 | $57,001–$59,400.99 |
40% | $46,601–$48,500.99 | $55,101–$57,500.99 | $51,301–$53,200.99 | $59,401–$61,700.99 |
30% | $48,501–$50,400.99 | $57,501–$59,800.99 | $53,201–$55,100.99 | $61,701–$64,100.99 |
20% | $50,401–$52,400.99 | $59,801–$62,100.99 | $55,101–$57,000.99 | $64,101–$66,400.99 |
10% | $52,401–$54,300.99 | $62,101–$64,500.99 | $57,001–$59,000.99 | $66,401–$68,700.99 |
0% | $54,301+ | $64,501+ | $59,001+ | $68,701+ |
Source: DOR's 2026 Household Income Table, based on 2025 income. DOR says the table is subject to change.
Closely related means a brother, sister or parent who is also an owner-occupant. Their income is added to yours, but you use the higher married limits, and each of them completes their own Schedule I.
Examples
These are our own lookups in the table above.
Applicant | 2025 household income | Relief |
|---|---|---|
Single, age 70 | $36,000 | 100% |
Married couple, 68 and 66 | $49,000 | 70% |
Widow, 75 | $45,000 | 50% |
Single, 58, Category 3 (uses a walker permanently) | $42,000 | 90% |
Single, 72, $40,000 income and $5,000 out-of-pocket medical costs | $36,600 after the medical deduction | 100% |
In the last row, 4% of $40,000 is $1,600, so $3,400 of the medical costs comes off. Without that deduction, $40,000 would get only 80%.
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Home value limits in Douglas County
Categories 1, 2, 3 and 6 also have value caps set each year from the county's average home value. DOR's 2026 figures for Douglas County:
Douglas County, 2026 | Age (Category 1) | Disability categories |
|---|---|---|
Maximum exempt amount | $302,282 | $362,739 |
Maximum home value | $604,564 | $680,135 |
The county average residential value is $302,282. If your homestead is valued at or above the maximum, the exempt amount drops 10% for each $2,500 over. At $20,000 or more over, you get no exemption. For example (our math), a Category 1 home valued at $609,564 is $5,000 over, so the exempt amount would drop 20%.
A homestead appeal can't be used to challenge your home's value. If you think the assessment is too high and could cost you the exemption, you must protest the value by June 30.
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Deadlines, late filing and appeals
The 2026 filing window was February 2 through June 30, 2026. If you missed it, DOR's guide lists three ways to file late:
County board extension to July 20. You ask the county board in writing, and it votes. You can't get one if you got an extension the year before.
Spouse's death. File by June 30 of the next year with a copy of the death certificate.
Medical condition. A licensed medical practitioner certifies on Form 458L that your condition kept you from filing. Also due by June 30 of the next year.
So a 2026 application missed because of illness or a spouse's death can still go in on or before June 30, 2027. If you got an IRS extension, Schedule I can be filed late, by the October 15 extension date, but Form 458 itself is still due June 30.
What happens next: assessors send approved applications to DOR by August 1. DOR mails income-based approval or denial letters in mid-October. Value-based reductions come on Form 458R in October–November, and December tax statements show the exemption.
Appeals: contest a county rejection with the county board of equalization within 30 days. Contest a state denial with a Form 458P Petition for Redetermination to DOR within 30 days. If you find an error in the income or medical expenses you reported, notify DOR within three years after December 31 of the application year.
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GET READY FOR 2027
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Omaha and state contacts
Douglas County Assessor: Michael Goodwillie, 1819 Farnam St., Civic Center, Suite 400, Omaha, NE 68183, 402-444-7457, dcassessor.org
Douglas County Treasurer: 402-444-7272
Nebraska Homestead Helpline (DOR): (888) 475-5101
DOR Property Assessment Division: PO Box 98919, Lincoln, NE 68509-8919
More help in Omaha
Official sources
Last checked: October 30, 2026. Categories, income limits, value limits, deadlines, late-filing rules, appeals and contacts come from the Nebraska Department of Revenue's homestead exemption page, the February 2026 Information Guide, the 2026 income and average value tables, Form 458, and DOR's county assessor directory.
This is general information, not tax advice. Your county assessor and the Nebraska Department of Revenue decide whether you qualify and how much of your home's value is exempt.
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