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Category 2: the Homestead Exemption for a Disability That Has Nothing to Do With Service

Nebraska's Category 2 homestead exemption reaches a wartime veteran who is TOTALLY DISABLED BY A NON-SERVICE-CONNECTED accident or illness. That is the opposite of what almost every other benefit asks. A veteran who served in a listed wartime period and was later disabled in a car crash, or by cancer, is inside this. It is income-tested on a sliding scale: for 2026 full relief runs to $41,600.99 single and $47,700.99 married or closely related, tapering to nothing at $59,001 and $68,701. Homestead value limits apply. You must own and occupy the home from 1 January to 15 August.

Verified August 27, 2026

What this benefit is

Nebraska's Category 2 homestead exemption reaches a wartime veteran who is TOTALLY DISABLED BY A NON-SERVICE-CONNECTED accident or illness. That is the opposite of what almost every other benefit asks. A veteran who served in a listed wartime period and was later disabled in a car crash, or by cancer, is inside this. It is income-tested on a sliding scale: for 2026 full relief runs to $41,600.99 single and $47,700.99 married or closely related, tapering to nothing at $59,001 and $68,701. Homestead value limits apply. You must own and occupy the home from 1 January to 15 August.

What it's worth: Up to 100% of the exempt amount, tapering with income

  • The disability must be TOTAL AND NON-SERVICE-CONNECTED — an accident or illness unrelated to service.
  • Service during a wartime period listed by the Department of Revenue is required.
  • 2026 disabled-veteran income table: 100% relief up to $41,600.99 single and $47,700.99 married or closely related; 0% at $59,001 and $68,701 and over.
  • The scale is sliding, so income just above the full-relief line still gives partial relief.
  • HOMESTEAD VALUE LIMITS APPLY to this category.
  • You must own and occupy the homestead from 1 JANUARY TO 15 AUGUST.
  • Form 458B or VA certification is needed in the first year and in years ending in 0 or 5.
  • The income figures are for 2026 and are reset each year.

Who is entitled to it

  • You are in one of the groups this reaches.
  • The discharge meets the test.
  • You served in a listed wartime period.
  • You are totally disabled by a non-service-connected cause.
  • This is the home you own and live in.
  • Nebraska property.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: 1 February to 30 June
  1. 1File with your county assessor between 1 February and 30 June.
  2. 2File Form 458B, or VA certification, in your first year and again in any year ending in 0 or 5.
  3. 3Do not rule yourself out on income without checking the table — the scale tapers rather than cutting off at the full-relief line.
  4. 4If your disability IS service-connected, look at Category 4 instead; it has different limits.
  5. 5Own and occupy from 1 January through 15 August. Selling mid-year affects the claim.
Form
Form 458 with Form 458B
File with
Your county assessor
Documents you will need
va benefit summary letter
Annual
Claimed once a year.
Worth knowingNebraska's homestead categories are numbered and they are not alternatives to try in order — each has its own test. A veteran should check which category fits before filing.

Sources

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.