Nebraska will provide at least $808 million in school district property tax relief for tax year 2026. The credit is applied directly to property tax statements rather than claimed through an application.
By Hola Nebraska
NEBRASKA — Nebraska property owners will receive school district property tax relief automatically in 2026, with state law providing at least $808 million for credits that reduce eligible school taxes on real property.
The School District Property Tax Relief Credit does not require homeowners or other property owners to submit an application or wait for an income tax refund. County officials calculate the credit for each eligible parcel and show it directly on the property tax statement.
The program applies statewide and includes residential, agricultural and other real property subject to eligible school district taxes.
Property owners do not file an application for the 2026 school tax credit
The School District Property Tax Relief Credit differs from many state tax benefits because eligibility is tied to the property tax liability rather than household income or a separate application.
The credit applies to eligible school district property taxes assessed against real property in Nebraska. It does not depend on the owner’s age or income and is not limited to an owner-occupied primary residence.
Property owners who qualify for Nebraska’s homestead exemption can also receive the school district credit to the extent they still have eligible property tax liability after the homestead exemption is calculated.
The credit appears separately on the property tax statement and reduces the amount owed for eligible school district taxes.
Nebraska law provides at least $808 million in school tax relief for 2026
Nebraska created the School District Property Tax Relief Act in 2024 as a way to shift part of the cost of school property taxes to a state-funded credit.
The minimum amount of statewide relief increases under the schedule established in state law:
- 2024: $750 million
- 2025: $780 million minimum
- 2026: $808 million minimum
- 2027: $838 million minimum
- 2028: $870 million minimum
- 2029: $902 million minimum
The amount available can exceed the statutory minimum when additional money is transferred into the relief fund.
The Nebraska Property Tax Administrator determines each county’s share based on its portion of eligible school district property taxes. Counties then calculate the credit assigned to individual parcels.
The amount of the credit varies from one property to another
There is no single statewide dollar amount that every homeowner receives.
A parcel’s credit depends on eligible school district taxes and the amount allocated to its county. Properties with different assessed values, school districts and local tax obligations can therefore receive different credits.
School district taxes used to repay bonded debt are excluded from the calculation. Taxes resulting from certain voter-approved levy overrides are also excluded.
The Nebraska Department of Revenue maintains property tax credit information and statewide credit records for taxpayers and county officials.
The school credit is different from Nebraska’s Form PTC tax credit
Nebraska also has an income tax credit connected to certain property taxes, which can make the state’s property tax relief programs easy to confuse.
For property taxes paid beginning in 2024, the refundable income tax credit available through Nebraska’s Form PTC applies to qualifying community college property taxes. School district property taxes paid in 2024 and later are no longer claimed through that income tax credit.
The school district relief instead appears directly on property tax statements under the newer School District Property Tax Relief Act.
Taxpayers who missed qualifying school district credits from certain earlier years may still have different amendment rules. Nebraska currently allows refundable school district credits for eligible taxes paid in 2022 and 2023, while the filing window for credits tied to 2020 and 2021 has expired.
Nebraska’s two property tax credit systems serve different purposes
- 2026 School District Property Tax Relief Credit: applied automatically to eligible real property tax statements; no homeowner application required.
- Form PTC income tax credit: currently applies to qualifying community college property taxes paid and is claimed with a Nebraska income tax return.
County tax statements will show the credit before the final amount due
Nebraska requires the School District Property Tax Relief Credit to be displayed on county property tax records and tax statements.
The state determines county allocations by Sept. 15 each year. State funds are then distributed to counties in installments, while the credit itself is incorporated into the calculation of the property tax owed on each eligible parcel.
The credit reduces taxes owed; property owners do not receive the school district relief as a separate check.
Nebraska residents looking for another state tax benefit can also review Hola Nebraska’s guide to the 2026 Nebraska child care tax credit, worth up to $2,000 per qualifying child.
For tax year 2026, state law requires at least $808 million in School District Property Tax Relief Credits to be distributed across Nebraska’s counties and applied to eligible real property tax bills.
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