Military Retirement — 100% Excluded, No Election
From tax year 2022, 100% of military retirement benefits are excluded from Nebraska income tax — automatically, with no election or form.
Verified August 19, 2026
What this benefit is
From tax year 2022, 100% of military retirement benefits are excluded from Nebraska income tax — automatically, with no election or form.
What it's worth: 100% of military retirement benefits, excluded automatically
- The saving is your marginal state rate on the amount excluded, so it depends on your bracket.
Who is entitled to it
- You receive military retired pay.
- Your home is in this state.
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: With your return- 1Nothing to elect and nothing to file — the exclusion applies automatically from tax year 2022.
- 2Uniformed services beyond the DoD count: Coast Guard, Public Health Service and NOAA commissioned corps retirement all qualify.
- 3If an OPM 1099-R mixes military and FERS civil service, document the military portion — that split is the one case needing paperwork.
- File with
- The state revenue department, on your annual return
- Annual
- Claimed once a year.
Sources
- authority · published policyNebraska Department of Revenue — Military Retirement Benefits Exclusion FAQ (Neb. Rev. Stat. §77-2716(14), LB 387)
Why only one source type: The Department of Revenue's FAQ states the 100% exclusion, the 2022 effective date and the no-election rule in terms.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.