Nebraska Veteran Financial Benefits
State Income Tax on Military Pay: Nebraska resident Service members are subject to state income taxes on active-duty military pay.
Exemption on Military Retirement Pay: Retired military personnel in Nebraska benefit from a full exemption on military retirement pay for state income tax purposes.
Thrift Savings Plan (TSP): Although TSP contributions do not withhold state or local income tax, they are reported on IRS Form 1099-R. Distributions after retirement are typically not taxed by the state, though early withdrawals may lead to higher tax liabilities.
Tax Treatment of Military Disability Retirement Pay: Payments classified as Military Disability Retirement Pay—such as VA disability compensation, grants for adapted housing or vehicles, or dependent-care benefits—are not included in Nebraska’s taxable income.
VA Dependency and Indemnity Compensation (DIC): DIC payments made to eligible survivors of fallen Service members or Veterans whose deaths were service-related are not taxed at the state level.
Survivor Benefit Plans (SBP, RCSBP, RSFPP): Annuities received through these plans are not subject to Nebraska state income tax.
Combat Zone Income and Tax Filing Extensions: Nebraska aligns with federal provisions by excluding combat zone pay from taxable income and granting filing extensions for deployed Service members in combat or hazardous duty zones.
Homestead Property Tax Relief for Veterans and Survivors
Full or Partial Exemptions: The Nebraska Homestead Exemption Program provides eligible Veterans and their Surviving spouses with either full or partial property tax relief for their primary residence and up to one acre of land. Ownership and occupancy are required from January 1 through August 15 of the tax year.
Eligible Wartime Service Periods:
- WWII: Dec 7, 1941 – Dec 31, 1946
- Korean War: Jun 25, 1950 – Jan 31, 1955
- Vietnam (Republic of Vietnam): Feb 28, 1961 – May 7, 1975
- Vietnam: Aug 5, 1964 – May 7, 1975
- Lebanon: Aug 25, 1982 – Feb 26, 1984
- Grenada: Oct 23, 1983 – Nov 23, 1983
- Panama: Dec 20, 1989 – Jan 31, 1990
- Persian Gulf War: Beginning Aug 2, 1990
- Global War on Terror: From Sep 14, 2001 – Present (TBD)
Exemption Categories:
- Non-Service-Connected Total Disability: Partial tax exemption based on income thresholds.
- Service-Connected Total Disability or Surviving Spouse: Full 100% tax exemption, with no income or home value limitations.
- VA-Adapted Housing Assistance Recipients (Severely Disabled Veterans or Multiple Amputees): Eligible for full property tax exemption. Surviving spouses remain eligible as long as they do not remarry before age 57.
Note: Applications must be submitted between February 1 and June 30 through the local county assessor’s office.
Nebraska Motor Vehicle Tax Relief for Disabled Veterans
Qualified disabled or blind Veterans may receive a vehicle tax exemption for one personally owned and used motor vehicle.
Nebraska State Sales Tax Overview
- Base State Rate: 5.5%
- Additional Local Rate: Up to 2% (varies by county)
- Average Combined Sales Tax Rate: 6.02%
Recreation
Hunting, Fishing, and Park Benefits for Nebraska Veterans and Service Members
Resident-Rate Permits for Nonresident Active Duty Military:
Active duty service members who are not Nebraska residents but have been stationed in the state for at least 30 days are eligible to purchase Nebraska hunting and fishing permits at the same rate as residents.
Lifetime Small Game Hunt/Fish/Fur Harvest Permit for Disabled Veterans:
Nebraska resident Veterans with qualifying disabilities may be entitled to receive a no-cost lifetime permit that includes all required state stamps. Though the permit itself is free, a $5 annual renewal fee applies.
Annual Hunting and Fishing Permit for Veterans Aged 64 and Older:
Nebraska resident Veterans aged 64 and above can obtain the Veteran’s Annual Small Game Hunt/Fish/Fur Harvest Permit for just $5. It includes all necessary state stamps and must be renewed each year for the same fee.
Discounted Permit for Recently Deployed Military Members:
Nebraska residents who have served out-of-state on deployment within the last year qualify for a one-time $5 Annual Small Game Hunt/Fish/Fur Harvest Permit. This special rate includes all applicable state stamps.
Free Lifetime Park Entry Permit for Disabled Veterans:
Eligible disabled Veterans living in Nebraska can apply for a free lifetime park entry permit, allowing unlimited access to all Nebraska State Parks without paying entry fees.
Education Programs
Nebraska Education Benefits for Veterans, Service Members, and Their Families
Residency for Tuition Purposes:
Nebraska extends in-state tuition eligibility to qualifying military-affiliated individuals, including active-duty service members, Veterans, and their dependents. To be considered a resident for tuition purposes, one of the following conditions must be met:
- Active-duty members of the U.S. Armed Forces permanently stationed in Nebraska, along with their spouses and dependents.
- Honorably discharged Veterans who either retained Nebraska as their state of residence or graduated from a Nebraska high school and now maintain a permanent home in the state.
- Veterans, their spouses, and dependents who register to vote and demonstrate intent to become Nebraska residents.
- Members of the Nebraska National Guard.
Nebraska Waiver of Tuition Program:
The state covers 100% of tuition and tuition-related fees for eligible dependents of qualifying Veterans at public higher education institutions, including the University of Nebraska, state colleges, and community colleges. This benefit can be applied once for a degree, diploma, or certificate from a community college and once for a bachelor’s degree. Note: housing, meals, textbooks, and other non-tuition expenses are not included.
Reservist Tuition Credit Program:
Nebraska reservists serving in an in-state unit may receive up to a 75% tuition credit at eligible institutions (50% for graduate/professional programs). Up to 200 new applicants are accepted annually, with no lifetime usage limit for qualifying service members.
Operation Recognition – Honorary High School Diplomas:
Veterans who left high school in Nebraska to serve in WWII, the Korean War, or the Vietnam War can receive an honorary high school diploma. Eligible service periods include:
- WWII: Sept. 16, 1940 – Dec. 31, 1946
- Korean War: June 25, 1950 – Jan. 31, 1955
- Vietnam War: Nov. 1, 1955 – May 7, 1975
Former Nebraska residents who now live out of state are still eligible.
Interstate Compact on Educational Opportunity for Military Children (MIC3):
Nebraska is part of MIC3, a compact designed to help military children overcome educational barriers caused by frequent relocations and deployments. The compact ensures:
- Prompt school enrollment and record transfer
- Consistency in academic placement and graduation timelines
- Equal access to educational programs and extracurricular activities
- Smooth coordination between states, schools, and military families
- Uniform data collection and inter-state cooperation
Purple Star School Designation:
Schools in Nebraska that show exceptional support for military-connected students can earn the Purple Star designation. To qualify, schools must:
- Assign a dedicated liaison trained to assist military families
- Train faculty on the needs of military-connected students
- Maintain an online resource hub for military families on the school’s website
Housing: Locations of Veterans Homes
Nebraska operates four Veterans’ homes that provide domiciliary, intermediate, and skilled nursing care for eligible Veterans and their family members.
Nebraska State Veterans Home at Bellevue
Nebraska State Veterans Home at Norfolk
Nebraska State Veterans Home at Grand Island
Nebraska State Veterans Home at Scottsbluff
Nebraska Veterans’ Homes Services
The Nebraska Veterans’ Homes provide a variety of supportive services, including:
- Physical therapy
- Occupational therapy
- Speech-language therapy
- Restorative nursing programs
- Hospice and palliative care
- Memory care support units
Eligibility Requirements for Admission to Nebraska Veterans’ Homes
For Veterans:
- Must have served on active duty (not just for training) in the U.S. Armed Forces and received an Honorable or General (Under Honorable Conditions) discharge
- Must have been a Nebraska resident for at least two years
- Must be unable to maintain employment
- Must be partially or fully dependent on public assistance, with required care only available through a state facility
For Spouses:
- Must have been married to a qualified Veteran for a minimum of two years before applying
- Must be at least 50 years old
- Must be unable to support themselves
- Must rely in part or fully on public assistance, and require care only available in a state-operated home
For Surviving Spouses and Gold Star Parents:
- Must be the surviving spouse or parent of a Service member who died in active duty or due to a service-connected condition
- Must have lived in Nebraska for two years prior to applying
- Must be age 50 or older
- Must be unable to maintain a livelihood
- Must depend partially or fully on public aid, with services only available in a state facility
Employment and Training Resources for Nebraska Veterans
State Hiring Preferences for Veterans and Their Families
Nebraska extends hiring preferences for state and local government positions to eligible Veterans, active-duty Service members, and their spouses. Applicants who pass all phases of an examination or earn a numerical rating are eligible to receive an additional 5% added to their score. Disabled Veterans receive an extra 5%, totaling 10%. This preference is also available to spouses of active-duty Service members for up to 180 days following separation or discharge.
Job postings that fall under Veterans preference must clearly indicate eligibility, and those who are not selected are provided notice along with information about available appeal options.
Veterans Preference in the Private Sector
Through the Nebraska Voluntary Veterans Preference Act, private employers are permitted to implement a Veterans preference hiring policy and list such opportunities through the Nebraska Department of Labor’s Veterans Preference Registry.
Veterans Employment Support Services
The Nebraska Department of Labor offers specialized employment assistance for eligible Veterans and their spouses. Priority of service ensures they receive earlier access or preference for training and employment programs if they meet eligibility criteria.
Support services include:
- Career exploration and advising
- Resume, cover letter, and interview coaching
- Access to job placement and referrals
- Guidance on education, training, and financial aid options
- Internet-equipped computers and assistance with job search tools
- Help navigating online application platforms
- Labor market insights
- Referrals to supportive resources
Federal Employment Preferences for Veterans
Federal law provides hiring and retention advantages for Veterans, particularly during workforce reductions or civil service hiring.
Point-Based Preferences:
- 5-point Preference: Awarded to Veterans who served during qualifying war periods or military operations, including Vietnam, Gulf War, and Operation Iraqi Freedom.
- 10-point Preference – Compensable Disability (CP): For Veterans with a service-connected disability rated between 10% and 30%.
- 10-point Preference – 30% Disability (CPS): For those with a disability rating of 30% or higher.
- 10-point Preference – Disability (XP): For Veterans receiving compensation or pensions but not qualifying as CP or CPS, or who received a Purple Heart.
- 10-point Derived Preference (XP): Granted to qualifying spouses, surviving spouses, or mothers of eligible Veterans. Both a mother and spouse may qualify under certain conditions.
Special Provisions:
Spouses of Veterans who cannot work in their usual occupation due to a service-connected disability may also be eligible for preference. Specific documentation and criteria must be met.
Veterans who enlisted after September 7, 1980, must have completed 24 months of continuous active duty unless separated early for qualifying reasons such as hardship or a service-connected disability.
Protections Under USERRA
The Uniformed Services Employment and Reemployment Rights Act (USERRA) safeguards job rights for Veterans and reserve component members. Key protections include:
- Reemployment Rights: Service members returning from military duty (up to five years cumulative) are entitled to return to their job with the same seniority, benefits, and pay, assuming eligibility requirements are met.
- Reasonable Accommodation for Disabilities: Employers must provide reasonable accommodations to disabled Veterans returning to work, including up to two years to recover before returning.
- Health & Pension Continuation: Service members may continue employer-provided health coverage for up to 24 months while on duty. Pension plans are also protected under USERRA.
Who Qualifies?
USERRA benefits apply to Veterans, National Guard, and Reserve members who leave employment for training or active military service. The U.S. Department of Labor’s Veterans’ Employment and Training Service (VETS) offers support with claims, including those from federal employees.
Military Leave for Nebraska State Employees
State employees who serve in the National Guard or Reserves are granted up to 15 paid workdays per calendar year when called to active duty. In the event of a declared emergency that extends beyond 15 days, they may receive extended leave. During such times, employees receive their regular salary minus their military base pay.
Compensation and Health Insurance for Nebraska National Guard Members
Nebraska National Guard members activated under state orders are paid at the same rate as their active-duty counterparts in the U.S. Armed Forces and are reimbursed for travel.
Additionally, Service members receive full reimbursement for privately purchased health insurance, or up to 102% of employer-sponsored health insurance premiums while on active duty under state or federal orders.
Burials and Memorials
It’s important to document your wishes concerning interment in a national cemetery and the use of a VA-provided headstone, and to ensure this information is included with your personal records and medical documents.
The National Cemetery Administration (NCA) honors qualified Veterans and their families by offering a dignified resting place and a lasting memorial to recognize their dedicated service to the United States.
Burial benefits include a gravesite in any open national cemetery with available space, the opening and closing of the grave, perpetual maintenance, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate—all provided at no cost to the family. Certain Veterans may also be eligible for a burial allowance. Cremated remains receive the same level of respect and care as traditional burials and are either interred or placed inurned in national cemeteries.
These benefits also cover eligible spouses and dependents, allowing them to be laid to rest alongside the Veteran, with ongoing care for the burial site. The spouse’s or dependent’s name, along with their birth and death dates, will be inscribed on the Veteran’s headstone without charge. Notably, a spouse or qualified dependent may receive burial benefits even if they pass before the Veteran, and they do not have to be buried in the same national cemetery.
National Cemeteries include:
Maxwell: Fort McPherson National Cemetery
Omaha: Forest Lawn Cemetery Soldiers’ Lot
Omaha: Omaha National Cemetery
Nebraska VA Benefit Resources
Nebraska offers Veterans access to a VA Medical Center and a Regional Benefits Office to support their needs.
Nebraska VA Regional Benefits Office
- Lincoln: Lincoln Regional Office
Nebraska VA Medical Centers
- Grand Island: Grand Island VA Medical Center
Veterans applying for VA benefits for the first time must provide a copy of their DD 214 (discharge document). This form verifies details such as discharge status, full name, Social Security number, military branch, and service dates. Generally, Veterans with an honorable or general discharge are eligible for most VA benefits.
It’s essential to store your discharge papers and medical records securely, in a place that is both protected and easily accessible by you or your family—preferably in a secure container like a safe.
Eligibility for many VA benefits depends on being discharged from active duty under conditions other than dishonorable. Active duty includes full-time service in the Army, Navy, Marine Corps, Air Force, or Coast Guard, or as a commissioned officer with the Public Health Service, Environmental Science Services Administration, or NOAA.
Veterans discharged dishonorably due to bad conduct by a general court-martial may be disqualified from receiving VA benefits. However, some incarcerated Veterans or those on parole may still qualify for certain benefits. For individuals with multiple discharges under different conditions, or those in prison or on parole, VA regional offices can provide specific eligibility guidance.
Information current as of November 2023.
Nebraska Veterans’ Benefits
Disabled Veterans in Nebraska with a VA disability rating of 90% or below may qualify for extra support and services. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. Our team can assess your case to see if you’re eligible for additional benefits.
