Property tax foreclosure in Nebraska

The property tax process in Nebraska, step by step

1. Taxes become delinquent

   May 1 and September 1 (April 1 and August 1 in counties over 100,000 people)

   Half of the year's real estate tax becomes delinquent on May 1 and the other half on September 1. In counties with more than 100,000 people, the dates are April 1 and August 1. Delinquent taxes draw interest at 14 percent a year from the date they become delinquent.

   Neb. Rev. Stat. §§ 77-204, 77-207, 45-104.01

2. Published list and the March tax sale

   List published in February; sale on the first Monday of March

   The county treasurer lists every property with delinquent taxes, including the owner's name and address, and publishes it once a week for three weeks starting the first week of February, adding a $20 advertising charge. The Department of Revenue also posts a statewide list online. Property still unpaid on the first Monday of March can be sold at public auction, and the buyer gets a tax sale certificate, not the deed.

   Neb. Rev. Stat. §§ 77-1801, 77-1802, 77-1804

3. Redeem through the county treasurer

   Until the buyer applies for a tax deed, or until a court confirms a foreclosure sale

   You, an occupant or a lienholder can redeem by paying the county treasurer the certificate amount plus 14 percent interest, any later taxes the buyer paid with interest, and set fees. In a court foreclosure, you can still redeem after the decree by paying the clerk of the district court before the sale is confirmed. A person with an intellectual disability or mental disorder has up to 5 years after the sale to redeem.

   Neb. Rev. Stat. §§ 77-1824, 77-1827, 77-1917

4. "Unless you act you will lose this property" notice

   At least 3 months before the buyer applies for a deed

   Before applying for a tax deed, the buyer must serve you a notice that says in large type: UNLESS YOU ACT YOU WILL LOSE THIS PROPERTY. It must be served in person or at your home on the occupant and the owner, by certified mail if that fails, and by certified mail on every recorded lienholder. Redemption is cut off at the close of business on the day the buyer applies, so act as soon as you get this notice.

   Neb. Rev. Stat. §§ 77-1831, 77-1832

5. Tax deed or court foreclosure

   Within 9 months after 3 years from the sale

   The buyer may take a treasurer's tax deed only if 110 percent of the assessed value, minus the amount needed to redeem, is $25,000 or less. If there is more equity than that, the buyer must foreclose in district court like a mortgage, the sheriff sells the property, and the court confirms the sale before a sheriff's deed issues. The county board must also order foreclosure, or take certificates, on property with taxes delinquent 3 or more years.

   Neb. Rev. Stat. §§ 77-1837, 77-1902, 77-1913, 77-1918

6. Your right to the surplus

   Paid within 30 days after a tax deed is recorded

   Within 30 days after recording a tax deed, the new owner must pay the surplus to the previous owner. The surplus is the resale price, or the assessed value if the property has not been resold, minus the redemption amount, all encumbrances, and a $500 fee (or reasonable attorney's fees after a court case). After a court foreclosure sale, any surplus is handled like mortgage foreclosure surplus and held by the court for you.

   Neb. Rev. Stat. §§ 77-1838, 77-1916, 25-2146

7. Homestead exemption

   Apply each year with your county assessor

   Nebraska's homestead exemption lowers property taxes on the home of qualifying older homeowners and some people with disabilities, with the amount based on household income. Apply on the state's Form 458 through your county assessor, and call the Nebraska Homestead Helpline at (888) 475-5101 with questions.

   Neb. Rev. Stat. § 77-3507

Common questions in Nebraska