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Nebraska — Veteran Benefits

Complete reference covering 58 benefit categories across 14 service tiers. Verify current eligibility with your County VSO before filing.

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Nebraska Veterans Aid Fund

At a Glance — What Unlocks by Status / Rating

Veteran benefits unlocked at each service status and disability rating in Nebraska
Status / Rating Headline Benefits Unlocked
Active Duty SCRA — active duty pay taxed only by legal-residence state; CDL skills-test waiver (within 12 months of separation); deployed hunting/fishing season access; DAV transportation to VA medical facilities
Guard / Reserve 75% tuition credit at NE public colleges (undergrad, up to 200 new applicants/yr, Neb. Rev. Stat. §80-901); 50% for graduate programs; veterans preference for state employment
Military Retiree 100% military retirement income tax-free (incl. SBP, effective 2022, no form needed); veterans preference
Veteran (honorable, no rating) Veterans preference +5% on passing score on exams; veteran designation on DL/ID; DAV medical transportation; Operation Recognition honorary diploma (WWII/Korea/Vietnam); state cemetery burial at no cost
0% SC Motor vehicle tax + fee exemption on 1 vehicle (LB650, effective Jan 1, 2026); DAV plates free (10% SC required for plates, but 0% qualifies for vehicle tax exemption); all veteran-tier recreation benefits
10–20% DAV plates free (10% SC threshold met); motor vehicle tax + fee exemption; veterans preference; hunting/fishing combo permit begins at 50% SC
30–40% Same as 10–20% tier
50–60% Free lifetime combo hunt/fish/fur/waterfowl/habitat permit (50%+ SC, $5 annual renewal fee); DAV plates free; motor vehicle tax + fee exemption; Disabled Veteran Lifetime Annual Park Entry Permit
70–90% Same as 50–60% tier; SC disabled veterans receive 10% total added to passing score on employment exams
100% schedular Homestead property tax fully exempt (Form 458 Category 4V — 100% SC permanent; no income/value cap; Neb. Rev. Stat. §77-3506(2)(a)); all 50%+ benefits
TDIU Homestead exemption — Form 458 Category 4V covers TDIU (100% Individual Unemployability, permanent; Neb. Rev. Stat. §77-3506(2)(a)); tuition waiver available for dependents (NDVA confirmed); all 50%+ benefits
P&T All 100%/TDIU benefits; federal SAH/SHA housing grants apply; state cemetery burial free for veteran and dependents
SMC (Housebound/A&A) All P&T benefits; SMC federal payments exempt from NE income tax under military retirement exclusion framework
Surviving spouse / dependents Category 4S homestead exemption (full, no income cap — KIA/SC-death surviving spouses); Category 4(b/d/e/f) surviving spouse exemptions; tuition waiver 100% at NE public colleges (dependents of 100% P&T or TDIU / KIA / MIA / POW, through age 26 or one baccalaureate degree); DIC state-tax-free

Taxes

1. Property Tax — Primary Residence

Nebraska's homestead exemption program (Neb. Rev. Stat. §§77-3501 to 77-3529) has veteran-specific categories with no income limit or home value cap, distinct from the income-limited senior and disability categories.
Verify locally: Confirm 2026 income table breakpoints with NE DOR Form 458 Schedule I.

Authority: Neb. Rev. Stat. §77-3506; NE Dept. of Revenue Homestead Exemption Information Guide (Feb 2026)

2. Property Tax — Vehicle / Personal Property

Any disabled veteran (including 0% SC) or blind veteran meeting either definition under LB650 (effective Jan 1, 2026): - Definition A: Served on active duty, separated honorably or under general (under honorable conditions) discharge, AND has established the presence of any service-connected disability (including 0%) - Definition B: Currently receiving compensation, disability retirement benefits, or pension administered by the VA or a military department

Authority: LB650 (2025); Neb. Rev. Stat. §60-3,185 (as amended)

3. Vehicle Sales / Use Tax

Nebraska does not exempt disabled veterans from the motor vehicle sales and use tax on purchase. Only the annual Motor Vehicle Tax and Motor Vehicle Fee (category 2 above) are waived under LB650. Sales tax at time of purchase still applies. ⚠️ Verify with NE Dept. of Revenue if any narrow exemption has been added for 2026.

4. State Income Tax — Active Duty Military Pay

**Federal protection via SCRA:** Under the Servicemembers Civil Relief Act, compensation received by a servicemember from uniformed service is taxed only by their legal-residence state. If stationed in Nebraska but legally domiciled elsewhere, NE does not tax active duty pay. Nebraska conforms to this federal rule.

Authority: 50 U.S.C. §4001; Neb. Rev. Stat. §77-2716

5. State Income Tax — Military Retirement Pay

**Full exemption — 100%** of military retirement benefits excluded from Nebraska taxable income to the extent included in federal AGI. No partial phase-in; no election form required. Effective for tax years beginning on or after January 1, 2022.

Authority: Neb. Rev. Stat. §77-2716.01; NE Dept. of Revenue FAQ (Military Retirement Benefits Exclusion)

6. State Income Tax — SBP Annuity

**Fully exempt.** SBP, RCSBP, and RSFPP annuity payments are not taxed in Nebraska. Nebraska's military retirement exclusion (Neb. Rev. Stat. §77-2716.01) covers SBP annuity payments reported on Form 1099-R from DFAS. No separate election required.

Authority: Neb. Rev. Stat. §77-2716.01

7. State Income Tax — General

VA disability compensation is **exempt from all state income taxes under federal law** (38 U.S.C. §5301) regardless of rating percentage. Nebraska does not add any state exemption — it is simply not in federal AGI and thus not taxable.

8. Sales Tax Exemption

Nebraska does not issue a veteran or military sales tax exemption card for general retail purchases. There is no across-the-board sales tax exemption for veterans in Nebraska.

9. Other State Tax Breaks

No additional state-specific veteran tax breaks identified beyond those in categories 1–7 above.

Vehicle, Travel & ID

10. Vehicle Registration Fee

Under LB650 (effective Jan 1, 2026), disabled veterans are exempt from the **Motor Vehicle Fee** (the registration fee component) for ONE vehicle. All other registration charges (plate fee, wheel tax, etc.) still apply. See category 2 for full eligibility details.

11. Disabled Veteran License Plates

Veteran who served in U.S. Armed Forces, discharged honorably or under general (under honorable conditions) discharge, **10% or greater service-connected disability**, and enrolled in the NDVA Military and Veterans' Registry.
Verify locally: - **Application:** DMV Form DAV (Revised 03/2026); requires Nebraska Certificate of Title in veteran's name and NDVA Registry enrollment confirmation.

Authority: Neb. Rev. Stat. §60-3,124; LB650 (2025)

12. Other Veteran / Military Specialty Plates

Specialty plates available for: Purple Heart recipients (no fee for recipient), Ex-POW, Pearl Harbor Survivor, Military Honor (any branch insignia), Campaign Medal, Gold Star Family, Guard/Reserve branch plates. Most carry a standard $3.25 DMV processing fee. Purple Heart plates are free for the recipient.

13. Toll Road / Bridge Exemption

Nebraska does not have a statewide toll road system. No veteran toll exemption program exists because there are no applicable toll facilities.

14. Public Transit Discount

No statewide reduced or free veteran transit program identified. The **DAV Transportation Network** provides free rides to and from VA medical facilities statewide; volunteer drivers operate through 247+ VA locations nationally including Nebraska. This is a national DAV program, not a state program, but it serves Nebraska veterans.

15. Disabled Parking Privileges

Nebraska follows standard ADA disabled parking permit criteria. A **Handicapped Parking Permit** requires medical certification that the applicant cannot travel more than 200 feet without a wheelchair, crutch, walker, prosthetic, or other assistive device. No veteran-specific lower threshold exists; the standard medical impairment criterion applies.

Authority: Neb. Rev. Stat. §60-3,113.02

16. Driver License / State ID Fee

No fee waiver identified for initial DL/ID issuance or renewal specifically for veterans.

Authority: NDVA and DMV joint program; veterans.nebraska.gov/registry

17. CDL Fee / Skills-Test Waiver

Currently licensed CDL holder or applicant who was in a military position requiring operation of a military motor vehicle equivalent to a commercial motor vehicle (CMV) within the **past 12 months**.
Verify locally: - No CDL issuance fee waiver identified; the skills test waiver is the only military benefit confirmed.

Authority: Federal MAP-21 CDL military exemption; NE DMV implementing rules; NE DMV Application for Military Skills Test Waiver form.

18. Veteran Designation on DL / ID

Covered under category 16. Veteran designation is available on NE driver's license and state ID at no extra fee, enabling access to military discounts at participating businesses.

Outdoor Recreation

19. Hunting License

**Disabled veteran (50%+ SC or pension for total and permanent disability) — Free lifetime combination permit:**

Authority: Neb. Rev. Stat. §37-420; Nebraska Game and Parks Commission

20. Fishing License — Freshwater

Covered under category 19. The free lifetime combination permit for 50%+ SC disabled veterans includes freshwater fishing. Annual $5 renewal fee applies.

21. Fishing License — Saltwater

Nebraska is landlocked. No saltwater fishing program or license exists.

22. Combination Hunt/Fish License

Covered under category 19. The free combination permit includes hunting, freshwater fishing, fur-harvesting, habitat stamps, aquatic habitat stamp, and migratory waterfowl stamp.

23. Trapping License

Covered under category 19. The free combination permit explicitly includes fur-harvesting (trapping). Same eligibility and $5 annual renewal fee applies.

24. State Parks — Day Use / Entrance

Same as category 19 (50%+ SC or total and permanent disability pension), Nebraska resident, honorable/general discharge, in-person application at Game and Parks office with DD-214 or DL veteran indicator.

Authority: Nebraska Game and Parks; Neb. Rev. Stat. §37-420(2)

25. State Parks — Camping

Nebraska does not offer veteran discounts on camping or lodging fees at state parks. The Lifetime Annual Park Entry Permit covers day-use entrance only; camping fees are charged at standard rates for all visitors including veterans. ⚠️ Verify with Game and Parks Commission whether any pilot discount program has been enacted since 2025.

26. State Parks — Annual / Lifetime Pass

Covered under category 24. The **Disabled Veterans' Lifetime Annual Park Entry Permit** is the state's annual/lifetime park pass equivalent for qualifying disabled veterans.

27. Boat / Watercraft Registration

Nebraska does not provide a veteran exemption or discount on boat (motorboat) registration fees. Standard registration fees through the Nebraska Game and Parks Commission apply to all boat owners regardless of veteran status. ⚠️ Verify with Nebraska Game and Parks for any 2025–2026 legislative changes.

Education

28. In-State Tuition

All veterans using GI Bill benefits (Chapter 30, 33, 35) or Veterans Readiness and Employment (VR&E/Chapter 31) are entitled to **in-state tuition rates** at Nebraska public universities, colleges, and community colleges regardless of how long they have been Nebraska residents, under the **Veterans Choice Act (38 U.S.C. §3679)**.

Authority: Veterans Choice Act §702; 38 U.S.C. §3679

29. Tuition Waiver — Disabled Veteran

Nebraska's **Waiver of Tuition Program** (Neb. Rev. Stat. §80-411) provides **100% waiver of tuition and tuition-related fees** at participating Nebraska public institutions for dependents of qualifying veterans.
Verify locally: **Qualifying veteran must have been:** - Determined by the VA to be **rated 100% permanently and totally disabled as a result of military service** (NDVA confirms TDIU veterans, when permanent, are covered under this language), OR - Died subsequent to discharge as a result of injury or illness sustained while a member of the armed forces (including death from a service-connected disability), OR - Classified as **missing in action** or **prisoner of war** during armed hostilities **Eligible dependents:** - Spouse or surviving spouse: eligible while married to the veteran, until earning one baccalaureate degree - Biological, adopted, or stepchild: eligible until age 26 (extension to age 31 if active duty service occurred between ages 18–26) **Student residency:** Must be a Nebraska resident meeting in-state tuition residency standards.

Authority: Neb. Rev. Stat. §80-411; residency standards §85-502

30. Dependent Education Benefit

Nebraska enacted the **Purple Star Schools Act** (2021) recognizing K–12 public schools that commit to supporting military-connected students. Schools earn the designation by maintaining a dedicated point of contact for military families, professional development on military family issues, and a military student transition program. It is not a financial benefit but facilitates smoother transitions for approximately 4,000 Nebraska K–12 students with a parent in the military.

Authority: Nebraska Department of Education, Purple Star Schools Program; education.ne.gov/csds/purplestar/

31. Spouse Education Benefit

The tuition waiver program (category 29) includes spouses of qualifying veterans. Spouses remain eligible while married to the veteran (or as a surviving spouse) until earning one baccalaureate degree.

32. National Guard / Reserve Tuition Assistance

**Reservist Tuition Credit Program** (Neb. Rev. Stat. §§80-901 to 80-903):

Authority: Neb. Rev. Stat. §80-901 (2025); Nebraska Army/Air National Guard also offers state tuition assistance separately through the NE Military Department (ne.ng.mil).

33. K-12 Support

Covered under category 30. Nebraska's Purple Star Schools designation applies. Nebraska also participates in the **Interstate Compact on Educational Opportunity for Military Children (MIC3)**, which eases enrollment, placement, and graduation requirements for children of active duty military families during PCS moves.

34. State Student Loan / Scholarship

No state-funded veteran-specific scholarship or loan program identified beyond the tuition waiver (category 29) and Guard/Reserve credit (category 32).
Verify locally: ⚠️ Verify with NDVA and NE Coordinating Commission for Postsecondary Education whether any new scholarship funds were appropriated in the 2025–2026 legislative session.

Employment & Licensing

35. Veterans Hiring Preference

Nebraska statutes (Neb. Rev. Stat. §48-225 et seq.) grant veterans' preference for state and political subdivision employment.

Authority: Neb. Rev. Stat. §§48-225 to 48-232; LB144 (2025)

36. Professional License Fee Waiver

Nebraska provides expedited licensing, temporary licenses, and fee waivers for veterans and active duty members across many regulated professions. The specific benefit varies by licensing board and profession.
Verify locally: **Confirmed example:** Nebraska DHHS veterinary licensing waives fees for honorably discharged veterans. Contact the relevant professional licensing board or NDVA to confirm current fee waiver and expedite status for your specific occupation.

Authority: Neb. Rev. Stat. §38-129.01 (temporary credentials); §38-129.02 (reciprocity methods); individual board regulations.

37. Professional License Reciprocity — Military Spouse

Nebraska law (Neb. Rev. Stat. §38-129.01 and §38-129.02) provides **temporary credentials and reciprocity-based licensure** for military spouses relocating to Nebraska.

Authority: Neb. Rev. Stat. §38-129.01; §38-129.02; DOL Military Spouse License Transfer guidance.

38. Business License Fee Break

**Unavailable as a distinct program** — Nebraska does not have a standalone veteran business license fee waiver. Veterans starting businesses may be eligible for fee waivers through individual city/county occupational licensing boards, but no statewide veteran business license exemption has been confirmed. ⚠️ Verify with Nebraska Secretary of State and your local city/county licensing office.
Verify locally: Veterans starting businesses may be eligible for fee waivers through individual city/county occupational licensing boards, but no statewide veteran business license exemption has been confirmed. ⚠️ Verify with Nebraska Secretary of State and your local city/county licensing office.

39. Civil Service / Retirement Credit

Nebraska state classified employees who are veterans may receive **service credit** toward state retirement for active duty military service, consistent with USERRA (38 U.S.C. §4301 et seq.) requirements. USERRA mandates that returning servicemembers be credited with the time on military leave for seniority, retirement, and benefit accrual purposes.

Authority: USERRA federal mandate; Nebraska DAS State Personnel System.

Housing & Financial

40. State Home Loan / Down-Payment Assistance

Nebraska does not operate a standalone state veteran home loan or down-payment assistance program separate from the federal VA home loan guaranty. However, the **Nebraska Investment Finance Authority (NIFA)** offers a **Military Home Program** that is veteran-specific:

Authority: Nebraska Investment Finance Authority (nifa.org); NIFA Military Home Program.

41. Financial Assistance / Emergency Relief

- Veteran who served on active duty (not active duty for training), discharged honorably or under general (under honorable conditions) discharge; or served with allied forces during qualifying periods. - Spouses and dependents of qualifying veterans are also eligible. - No income limit stated in statute; aid is emergency/last-resort in nature.

Authority: Neb. Rev. Stat. §§80-401 to 80-409; §80-401.01

42. State Veteran Bonus

Nebraska does not offer a state cash service bonus or wartime bonus to veterans. No active state bonus program was identified.

43. Specially Adapted Housing — State Supplement

Nebraska has no state-funded adapted housing supplement. Veterans with service-connected disabilities qualifying for federal VA adapted housing grants should apply directly through VA (Form 26-4555): - **SAH** (Specially Adapted Housing): up to **$126,526** (FY2026, Federal Register 2025-20047) - **SHA** (Special Housing Adaptation): up to **$25,349** (FY2026, Federal Register 2025-20047)

44. Utility / Heating Assistance

The **Low Income Home Energy Assistance Program (LIHEAP)** is available to low-income Nebraska households including veterans, but it is not veteran-specific. It is administered through Nebraska Health and Human Services based on income.

Health & Support

45. State Veterans Home / Nursing Home

- Served on active duty in the U.S. Armed Forces with honorable or general discharge. - Resided in Nebraska at least **2 years** at any time during their lifetime. - Disabled by reason of service, age, or otherwise unable to earn a living. - Spouses, surviving spouses, Gold Star spouses, and Gold Star parents are also eligible under similar requirements.

Authority: Neb. Rev. Stat. §§80-501 et seq.; NDVA State Veterans' Homes program.

46. Behavioral / Mental Health Programs

NDVA provides referral and coordination for behavioral and mental health services. Nebraska's six health regions each offer veteran-specific behavioral health resources. The NDVA Veterans' Gateway (nvg.nebraska.gov) connects veterans to local mental health providers, crisis resources (Veterans Crisis Line: 988, Press 1), and peer support programs.

47. Dental / Vision / Health Programs

**Unavailable as a distinct state program** — Nebraska does not fund a state-level veteran dental, vision, or general health insurance benefit. Veterans should access dental and vision care through federal VA healthcare eligibility (va.gov/health-care/eligibility) or CHAMPVA (for eligible dependents of P&T veterans).

48. Long-Term Care / Aid & Attendance Supplement

Nebraska does not provide a state supplement to the federal VA Aid and Attendance (A&A) pension benefit. The four State Veterans' Homes (category 45) are the state's primary long-term care resource for qualifying veterans.

49. Free Legal Aid / Veteran Treatment Courts

**Legal and Advocacy Assistance:** NDVA provides free legal and advocacy assistance to veterans navigating VA claims, appeals, and benefits through State Service Officers and County Veterans Service Officers statewide. All NDVA services are provided at no charge.

Authority: LB150 (2025, eff. July 1, 2027); Nebraska Judicial Branch Veterans Treatment Court standards.

50. Concealed Carry / Firearms Fee Waiver

Nebraska issues Concealed Handgun Permits (CHP) through the Nebraska State Patrol. The standard fee is **$100** for a new permit.
Verify locally: ⚠️ Verify with Nebraska State Patrol (statepatrol.

51. Vital Records / Notary Fee Waiver

Under Neb. Rev. Stat. §71-612(2)(a), Nebraska DHHS provides free searches and certified copies of vital records (birth, death, marriage certificates) when requested by the **U.S. Department of Veterans Affairs or an authorized veterans service organization** on behalf of a veteran or family member, in connection with a service-connected claim. The standard fee is **$17.00 per copy** (2026); veterans obtaining records through a VSO or NDVA State Service Officer for a claim purpose avoid this fee.

Authority: Neb. Rev. Stat. §71-612(2)(a)

Legal & Administrative

52. Unique State Programs

**Operation Recognition** (honorary high school diplomas): A joint NDVA/Nebraska Department of Education program awarding honorary high school diplomas to veterans who left school during WWII (Dec 7, 1940 – Dec 31, 1946), the Korean War (June 25, 1950 – Jan 31, 1955), or the Vietnam War (Nov 1, 1955 – May 7, 1975) and did not complete their education after service. Over 1,700 diplomas awarded since 1999.
Verify locally: gov/operation-recognition **NDVA Military and Veterans' Registry:** Free registration used to verify eligibility for multiple NE state benefits (DAV plates, motor vehicle tax exemption, veteran DL designation).

Authority: NDVA/NDE joint program; veterans.nebraska.gov/operation-recognition

Survivor Benefits

53. Surviving Spouse — Property Tax

Surviving spouses of qualifying veterans are covered under Form 458 Categories 4S and 4(b/d/e/f) of the homestead exemption program (Neb. Rev. Stat. §77-3506), with **full (100%) exemption and no income limit**, provided:

54. Surviving Spouse — Education

The Tuition Waiver Program (category 29) explicitly covers **surviving spouses** of veterans who were rated 100% P&T (including TDIU, permanent), died of a service-connected cause, or were MIA/POW. Coverage continues until earning one baccalaureate degree. ⚠️ Verify with NDVA whether remarriage after age 57 preserves tuition waiver eligibility in the same manner as it does for the property tax exemption.
Verify locally: ⚠️ Verify with NDVA whether remarriage after age 57 preserves tuition waiver eligibility in the same manner as it does for the property tax exemption.

55. Dependent / Survivor State Benefit

**Tuition waiver for children** (category 29): Biological, adopted, or stepchildren of qualifying veterans (100% P&T or TDIU / KIA / MIA/POW) are eligible for the full tuition waiver through age 26 (extension to age 31 with qualifying active duty service gap).

Memorial & Burial

56. State Veterans Cemetery

Determined by federal law (Title 38, §§112, 2306, 2402, 2411). Generally requires honorable or general discharge; spouses and eligible dependents are also eligible. Eligibility confirmation within 48 hours of request.
Verify locally: Eligibility confirmation within 48 hours of request.

Authority: Title 38 U.S.C.; NDVA Cemetery System; veterans.nebraska.gov/nebraska-veterans-cemetery-system

57. Burial Allowance / Plot

Nebraska state cemeteries charge **no fees** (category 56). Federal VA burial benefits are also available:

Authority: VA.gov — Veterans Burial Allowance (va.gov/burials-memorials/veterans-burial-allowance/); 38 C.F.R. Part 3 Subpart B.

58. Headstone / Memorial / Honors

**State cemeteries:** Upright marble headstone provided at no cost (see category 56).

Authority: 38 U.S.C. §2306 (headstones); 38 U.S.C. §2301 (burial flag); 10 U.S.C. §1491 (military funeral honors mandate)