Military Retirement Pay State Income Tax Exemption
100% exclusion of military retirement pay from Nebraska state income tax.
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Apply directly through the official Nebraska agency.
About this benefit
Eligibility
All military retirees whose retirement benefits are included in federal AGI. Includes Coast Guard, USPHS Commissioned Corps, and NOAA Commissioned Officer Corps retirees. No cap on the exemption amount.
How to claim
Automatic when filing Nebraska state taxes. No election or form submission needed. Effective for tax years beginning on or after January 1, 2022.
Verified against official source
Last checked 2026-05-05 against veterans.nebraska.gov. Always confirm current rates and rules with the Nebraska state agency before applying.
Other Nebraska Tax Benefits
National Guard Pay State Income Tax Exemption
100% exclusion of Nebraska National Guard pay from Nebraska state income taxes.
Homestead Property Tax Exemption (Disabled Veterans)
Reduction or elimination of property taxes on a veteran's homestead based on disability category.
Varies by category; potentially thousands per year
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