Nebraska: Homestead Exemption Amounts
The short answer
Nebraska protects up to $120,000 of the equity in your home from an ordinary money-judgment creditor (Neb. Rev. Stat. § 40-101). That figure doubled from $60,000 on July 18, 2024, so beware older sources that still say $60,000. There's also a size limit: 160 acres in the country, or two contiguous lots inside a city or village. The protection is automatic, you don't record anything in advance, and a judgment lien can't even attach to your homestead up to the exempt amount. The main debts that still reach it are a mortgage or deed of trust you signed, and mechanics', laborers', or vendors' liens for work on or the purchase of the property (§ 40-103).
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This is the general rule in Nebraska. Ezel applies current Nebraska law to your specific facts and answers with citations to the statutes.
| Governing law | Neb. Rev. Stat. Chapter 40 ('Homesteads'), §§ 40-101 to 40-116. § 40-101 creates the exemption and sets the $120,000 amount and the acreage/lot limits; § 40-103 lists the debts that can still force a sale; §§ 40-113 and 40-116 protect sale proceeds for six months. Purely statutory. The scheme was substantially rewritten by Laws 2024, LB1195: which raised the dollar figure and repealed the old separate 'selection' section (§ 40-102) |
|---|---|
| Exemption amount | $120,000 in value (Neb. Rev. Stat. § 40-101), raised from $60,000 effective July 18, 2024 (Laws 2024, LB1195, § 10). The statute caps 'a homestead not exceeding one hundred twenty thousand dollars in value'; in practice that protects your equity up to $120,000, since a forced sale first pays any mortgage. The figure is flat, with no inflation adjustment: a point critics note, since 160 acres of Nebraska land or an average home is worth far more |
| Size or acreage limit | Yes: in addition to the dollar cap. Neb. Rev. Stat. § 40-101 limits the homestead to the dwelling plus 'not exceeding one hundred and sixty acres of land ... not in any incorporated city or village, or, at the option of the claimant, a quantity of contiguous land not exceeding two lots within any incorporated city or village.' So a rural homestead can be up to 160 acres; an in-town homestead is capped at two contiguous lots. Both the size limit and the $120,000 value limit apply |
| Automatic, or do you have to file something? | Automatic. The exemption applies by operation of law to 'each natural person residing in this state' who lives in the home (Neb. Rev. Stat. § 40-101): there is no recording requirement and, since Laws 2024, LB1195 repealed the old selection section (§ 40-102), no separate selection filing. You claim the exemption when a creditor tries to execute; the sheriff and appraisers then value the property. You may record an optional homestead declaration for public notice and evidence, and that is the document the panel on this page prepares, but recording is permissive, not required |
| Who qualifies, and can spouses double it? | 'Each natural person residing in this state' who resides in the dwelling (Neb. Rev. Stat. § 40-101). The 2024 repeal of § 40-102 removed the old limits to a 'head of a family' or someone 65-plus, so any Nebraska resident who occupies the home now qualifies, single or married, with or without children. Doubling is UNSETTLED: long-standing case law holds a single parcel supports only one homestead (a bankruptcy court applied that in In re Hudson, Feb. 2024, to cap married debtors at one exemption), but LB1195's new 'each natural person' wording has prompted an argument that co-owning spouses may each claim $120,000. The courts have not yet resolved whether the 2024 change overrides the one-homestead-per-parcel rule, don't assume doubling is available |
| What it actually protects you from | A judgment lien AND a forced sale. Neb. Rev. Stat. § 40-101 makes the homestead exempt 'from judgment liens and from execution or forced sale', so a judgment lien doesn't even attach to your homestead up to the exempt amount, and a general creditor can't have it sold on execution. If the homestead is worth more than $120,000 and can't be physically divided, a statutory appraisal-and-sale procedure (§§ 40-104 to 40-113) applies, and the claimant is paid the $120,000 first from the proceeds. Equity above the cap is reachable |
| Debts that can still reach your home | Neb. Rev. Stat. § 40-103 says the homestead 'is subject to execution or forced sale in satisfaction of judgments obtained (1) on debts secured by mechanics', laborers', or vendors' liens upon the premises and (2) on debts secured by mortgages or trust deeds upon the premises executed and acknowledged by a claimant.' In plain terms: a contractor's or supplier's lien, a vendor's (purchase-money) lien, and any mortgage or deed of trust you signed all reach the home. (Laws 2024, LB1195 changed this so the claimant alone, not necessarily both spouses, must have signed the mortgage.) Property taxes reach the home through the separate tax-lien system, outside the exemption |
| Protection for sale proceeds | Six months. Neb. Rev. Stat. § 40-116 protects the proceeds of a homestead 'conveyed by the claimant, or sold for the satisfaction of any lien mentioned in section 40-103': the proceeds up to the exemption amount get 'for the period of six months thereafter, the same protection ... which the law gives to the homestead,' and you may use them to buy another homestead. Section 40-113 gives the same six-month protection to money paid to the claimant when an indivisible homestead is sold on execution. So sell or lose the home to a covered lien and you have six months to reinvest the protected amount |
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Governing law
Nebraska's homestead exemption lives in Chapter 40 of the Revised Statutes, "Homesteads" (§§ 40-101 to 40-116). Section 40-101 creates the exemption and sets the $120,000 amount and the acreage and lot limits. Section 40-103 lists the debts that can still force a sale. Sections 40-113 and 40-116 protect sale proceeds for six months. It's entirely statutory. The scheme was substantially rewritten in 2024 by LB1195, which raised the dollar figure and repealed the old separate "selection" section (§ 40-102).
Exemption amount
$120,000 of value. Section 40-101 protects "a homestead not exceeding one hundred twenty thousand dollars in value." That figure was raised from $60,000 effective July 18, 2024 (Laws 2024, LB1195, § 10). In practice the cap protects your equity up to $120,000, because a forced sale pays any mortgage off the top before the exemption is measured. The amount is flat, there's no automatic inflation adjustment, which critics point out has eroded the protection over time, since an average Nebraska home, or 160 acres of farmland, is worth far more than $120,000.
Size or acreage limit
Yes, on top of the dollar cap. Section 40-101 limits the homestead to the dwelling plus "not exceeding one hundred and sixty acres of land ... not in any incorporated city or village, or, at the option of the claimant, a quantity of contiguous land not exceeding two lots within any incorporated city or village." So a rural homestead can run up to 160 acres, while an in-town homestead is capped at two contiguous lots. Both limits, the size cap and the $120,000 value cap, apply together.
Automatic, or do you have to file something?
Automatic. The exemption applies by operation of law to "each natural person residing in this state" who lives in the home (§ 40-101). There's no recording requirement, and since LB1195 repealed the old selection section (§ 40-102) in 2024, there's no separate selection filing either. You assert the exemption when a creditor tries to execute against the home; the sheriff and court-appointed appraisers then value the property. You may record an optional homestead declaration to give public notice and evidence of your claim, and that's the document the panel on this page prepares, but recording is permissive, not required.
Who qualifies, and can spouses double it?
Any "natural person residing in this state" who resides in the dwelling (§ 40-101). The 2024 repeal of § 40-102 removed the old requirement that you be the "head of a family" or age 65 or older, so today any Nebraska resident who occupies the home qualifies, single or married, with or without children.
Whether spouses can double the exemption is genuinely unsettled. Long-standing Nebraska case law holds that a single parcel of land supports only one homestead; a bankruptcy court applied exactly that rule in In re Hudson (Feb. 2024) to limit married debtors to one exemption. But LB1195 rewrote § 40-101 to say "each natural person residing in this state shall have" the exemption, and that new wording has prompted an argument that two co-owning spouses may each claim $120,000. The courts haven't yet decided whether the 2024 language overrides the one-homestead-per-parcel rule, so don't count on doubling.
What it actually protects you from
Both a judgment lien and a forced sale. Section 40-101 makes the homestead exempt "from judgment liens and from execution or forced sale." That's stronger than in some states: in Nebraska a judgment lien doesn't even attach to your homestead up to the exempt amount, and a general creditor can't have it sold on execution. If the home is worth more than $120,000 and can't be physically divided, Nebraska uses a statutory appraisal-and-sale procedure (§§ 40-104 to 40-113), and the claimant is paid the $120,000 first out of the sale proceeds. Only equity above the cap can be reached.
Debts that can still reach your home
Section 40-103 names the debts that can still force a sale. The homestead "is subject to execution or forced sale in satisfaction of judgments obtained (1) on debts secured by mechanics', laborers', or vendors' liens upon the premises and (2) on debts secured by mortgages or trust deeds upon the premises executed and acknowledged by a claimant." In plain terms:
- A contractor's, worker's, or supplier's lien for work on the property.
- A vendor's (purchase-money) lien, the debt for buying the property.
- A mortgage or deed of trust you signed. (LB1195 changed the rule in 2024 so that only the claimant, not necessarily both spouses, must have executed the mortgage for it to reach the home.)
Property taxes also reach the home, but through the county's separate tax-lien and tax-sale system, which sits outside the homestead exemption.
Protection for sale proceeds
Six months. Under § 40-116, if the homestead is "conveyed by the claimant, or sold for the satisfaction of any lien mentioned in section 40-103," the proceeds up to the exemption amount keep "for the period of six months thereafter, the same protection ... which the law gives to the homestead," and you may use them to buy another homestead. Section 40-113 gives the same six-month protection to money paid to the claimant when an indivisible homestead is sold on execution. So if you sell your home, or lose it to a covered lien, you have a six-month window to reinvest the protected amount in a new homestead before it loses its shelter.
What trips people up
The single most important thing is the amount. Nebraska raised the homestead exemption from $60,000 to $120,000 effective July 18, 2024. A large share of online summaries, and even some fill-in forms, still quote $60,000, if you're relying on the exemption, use the current $120,000 figure.
Second, don't confuse this creditor exemption with Nebraska's "homestead exemption" property-tax program. That's an entirely separate benefit for older, disabled, and veteran homeowners, administered by the county assessor and the Department of Revenue, with its own income limits and annual application. The bills you'll see in the Legislature about "homestead exemptions" almost always concern that tax program, not the § 40-101 creditor exemption.
Third, the doubling question is open. If you're a married couple counting on $240,000 of combined protection, understand that Nebraska courts have historically allowed only one homestead per parcel, and the effect of the 2024 wording change hasn't been settled.
Fourth, remember the size limits and the exceptions. A large rural tract over 160 acres, or a third city lot, falls outside the homestead, and a mortgage, a contractor's lien, or a purchase-money lien can still reach the home.
Common questions
How much of my home equity is protected from creditors in Nebraska? Up to $120,000 (Neb. Rev. Stat. § 40-101), raised from $60,000 in July 2024, within the size limits of 160 rural acres or two city lots.
Do I have to file a homestead declaration in Nebraska? No. The exemption is automatic when you occupy the home. You can record an optional declaration for notice, but it isn't required.
Can my spouse and I each claim $120,000? It's unsettled. Nebraska case law has allowed only one homestead per parcel, but a 2024 change to the statute's wording has reopened the question, and the courts haven't resolved it.
If I sell my home, is the money safe? For six months. Proceeds up to the exemption amount stay protected for six months so you can reinvest them in another homestead (§§ 40-113, 40-116).
Statutes and sources
- Neb. Rev. Stat. § 40-101 (homestead exemption; $120,000 value cap; 160 acres rural or two city lots; exempt from judgment liens and forced sale), https://nebraskalegislature.gov/laws/statutes.php?statute=40-101 (accessed 2026-07-09)
- Neb. Rev. Stat. § 40-103 (debts that can still force a sale: mechanics'/laborers'/vendors' liens and mortgages or trust deeds a claimant executed), https://nebraskalegislature.gov/laws/statutes.php?statute=40-103 (accessed 2026-07-09)
- Neb. Rev. Stat. § 40-116 (proceeds of a conveyance or lien sale protected six months; may buy another homestead), https://nebraskalegislature.gov/laws/statutes.php?statute=40-116 (accessed 2026-07-09)
- Neb. Rev. Stat. § 40-113 (money paid to the claimant on an execution sale protected six months), https://nebraskalegislature.gov/laws/statutes.php?statute=40-113 (accessed 2026-07-09)
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