VetUnlock
State Benefit·Nebraska·🏛️Tax Benefits

Military Retirement Pay State Income Tax Exemption

100% exclusion of military retirement pay from Nebraska state income tax.

Verified May 12, 2026againstveterans.nebraska.gov

At a glance

Benefit type
Tax Benefits — Nebraska
Who it's for
Veterans
VA rating needed
No rating requirement
Estimated value
Varies by retirement pay amount
Where it applies
Nebraska
Last verified
May 12, 2026

What is Military Retirement Pay State Income Tax Exemption?

Military Retirement Pay State Income Tax Exemption is a Nebraska tax benefits benefit for veterans. 100% exclusion of military retirement pay from Nebraska state income tax. The listed value is Varies by retirement pay amount.

Who qualifies

Veterans
  • Available to any veteran
  • Nebraska residency

How to apply

Apply through the official Nebraska agency.

Open application

Who is eligible

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 apply for Military Retirement Pay State Income Tax Exemption

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.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: veterans.nebraska.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

How VetUnlock verifies benefits →

Frequently asked questions about Military Retirement Pay State Income Tax Exemption

Who qualifies for Military Retirement Pay State Income Tax Exemption?▾
Military Retirement Pay State Income Tax Exemption is for Veterans; available to any veteran; nebraska residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay State Income Tax Exemption worth?▾
The listed value is Varies by retirement pay amount. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay State Income Tax Exemption?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay State Income Tax Exemption?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

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

See every benefit you qualify for in Nebraska

Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and Nebraska residency — in under 2 minutes.

Find My Nebraska Benefits