Nebraska maintains a relatively high property tax burden, with a statewide effective rate of 1.44%. Following the August 2024 special legislative session (LB34), the state drastically restructured how residents receive property tax relief, front-loading hundreds of millions of dollars in school district credits directly onto local property tax statements (est., Tax Foundation 2026 / U.S. Census ACS 2024).
Property taxes in Nebraska are administered locally by counties to fund schools, cities, and community colleges. In response to rising property valuations across the state, the Nebraska Legislature has repeatedly intervened to artificially lower the burden on homeowners, culminating in the massive structural changes passed during the August 2024 special legislative session.
100% Annual Assessment Cycle
In Nebraska, residential property is assessed at 100% of its actual market value. (Agricultural and horticultural land is assessed at 75%).
Unlike states that revalue property every 3, 5, or 10 years, Nebraska operates on a strict annual assessment cycle. All property is valued as of January 1 of each year, meaning that as the housing market spikes, Nebraska tax assessments spike immediately in tandem.
Nebraska statewide effective rate. On a $350,000 home, expect approximately $5,040 per year at the statewide average. (est., Tax Foundation 2026).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $200,000 | $2,880 | $240 | +$1,080 above avg. |
| $350,000 | $5,040 | $420 | +$1,890 above avg. |
| $500,000 | $7,200 | $600 | +$2,700 above avg. |
| $750,000 | $10,800 | $900 | +$4,050 above avg. |
| $1,000,000 | $14,400 | $1,200 | +$5,400 above avg. |
Estimates use 1.44% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS.
2024-2025 Legislative Overhaul (LB34)
For years, Nebraska offered property tax relief primarily through a state income tax credit (where you claimed a percentage of school taxes paid when filing your state returns). Many taxpayers missed out because they failed to claim it.
During the August 2024 special session, the legislature passed LB34, which drastically changes the system:
- Front-loaded Relief: The state income tax credit for school district property taxes is eliminated. Instead, the relief is “front-loaded” directly onto your property tax statement. When you receive your bill from the county, it will already be reduced by your share of the state-funded credit.
- Local Revenue Caps: To ensure local governments don’t simply raise rates to capture the new state funding, LB34 strictly caps the amount of property tax revenue that political subdivisions can request. Growth is restricted to the rate of inflation.
The Homestead Exemption
Nebraska offers a generous but highly complex Homestead Exemption for residents aged 65 and older, certain disabled individuals, and eligible veterans. The exemption shields a percentage of the home’s value from taxation, but is subject to two major caps:
- Value Cap: The home’s value cannot exceed $95,000 (or $110,000 for certain veterans) OR roughly 200%-225% of the county’s average assessed single-family residential value. If it does, the exempt amount is penalized and reduced.
- Income Limits: The exemption operates on a sliding scale. As your household income rises, your exemption percentage drops in 10% increments. These limits are updated annually in February by the Department of Revenue.
Estimated Tax Rates Across the Top 10 Counties
Douglas County (Omaha) carries the highest property tax burden in the state at nearly 1.96%. To fund the sprawling infrastructure and large school districts of Nebraska’s largest metro area, local levies remain high.
Counties further west, like Platte and Lincoln, generally see lower effective rates (under 1.35%).
| County | Effective Rate | Annual Tax on $350k Home | Notes |
|---|---|---|---|
| Douglas County | 1.96% | $6,860 | Includes Omaha; highest rate in the state. |
| Lancaster County | 1.64% | $5,740 | Includes Lincoln (State Capital). |
| Sarpy County | 1.64% | $5,740 | Omaha suburbs (Bellevue, Papillion). |
| Hall County | 1.55% | $5,425 | Includes Grand Island. |
| Buffalo County | 1.41% | $4,935 | Includes Kearney. |
| Dodge County | 1.49% | $5,215 | Includes Fremont. |
| Scotts Bluff County | 1.63% | $5,705 | Western panhandle hub. |
| Madison County | 1.35% | $4,725 | Includes Norfolk. |
| Platte County | 1.26% | $4,410 | Includes Columbus. |
| Lincoln County | 1.34% | $4,690 | Includes North Platte. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). In Nebraska, property taxes are levied by overlapping local subdivisions (schools, counties, cities, NRDs). This calculator uses historical “effective rates” to bypass complex overlapping mill levies and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- Voter-approved local bond issues, which are exempt from the new LB34 revenue growth caps.
- The sliding-scale income restrictions of the Homestead Exemption.
How to get an accurate estimate:
- Find your home’s 100% Assessed Value on your County Assessor’s property search tool.
- Multiply the Assessed Value by your specific consolidated tax rate, and divide by 100.
- Subtract any approved front-loaded school tax credits (as established by LB34).
Data sources: Statewide effective rate and aggregate county effective rates derived from the Tax Foundation and Nebraska Department of Revenue CTL reports. Statutory rules, exemption limits, and LB34 special session legislation from the Nebraska Department of Revenue.
Return to the National Property Tax Calculator to compare Nebraska with other states.
