LINCOLN- One state property tax credit will rise slightly in 2023, but all Nebraskans still aren’t claiming a more lucrative tax refund available via their income tax return. The Nebraska Department of Revenue announced that the real property tax credit for tax year 2023 will amount to $220.76 for the owner of a $200,000 home, and $264.90 for the owner of $200,000 worth of farmland.

But all property owners still aren’t claiming a 3-year-old income tax credit that partially refunds property tax payments for K-12 schools and community colleges. A year ago, 40% of state taxpayers had failed to take the credit on their state income tax returns as of September, leaving $200 million unclaimed.

Those numbers have improved somewhat in 2023, with about $128 million unclaimed as of mid-September, or about 23% of the $548 million available. A Revenue Department spokeswoman, Lydia Brasch, said Wednesday that more taxpayers are expected to claim the credit in October, when those who asked for an extension in filing their income tax returns will file. She added that the department plans to send out postcards to property owners in hopes of increasing the use of the refund, which is intended to soften the impact from the state’s traditionally high property taxes.

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