What are Nebraska's adjusted debtor exemption dollar limits for 2023 through 2027?

Plain-English summary

Nebraska law requires the Department of Revenue to recalculate certain debtor exemption dollar limits -- the value of property a debtor can protect from creditors -- every five years, beginning in 2023, to reflect the cumulative change in the Consumer Price Index for All Urban Consumers. This Revenue Ruling publishes the amounts that apply for 2023 through 2027:

• Personal property (Neb. Rev. Stat. § 25-1552): $5,970
• Household goods (Neb. Rev. Stat. § 25-1556): $3,582
• Tools and other professional supplies (§ 25-1556): $5,970
• Motor vehicles (§ 25-1556): $5,970

These figures are set by statutory formula, not by the Department's discretion, and hold steady until the next five-year recalculation.

What this means for you

Debtors and people facing collection

These are the dollar caps on how much value in each category you can shield from creditors under Nebraska's exemption statutes for 2023-2027. They are worth knowing if you are dealing with a judgment, garnishment, or bankruptcy.

Creditors and collection professionals

Use the current figures when evaluating what property is reachable. Because they update on a five-year cycle, the next revision is due for 2028.

Note on scope

This is a Revenue Ruling the Tax Commissioner issues under a statutory duty; it addresses debtor exemption amounts, not sales, income, or other Nebraska taxes. For legal advice on applying an exemption in a specific case, consult a Nebraska attorney.

Common questions

Q: What is the Nebraska personal-property debtor exemption for 2023-2027?
A: $5,970 under Neb. Rev. Stat. § 25-1552.

Q: What are the household goods, tools, and motor vehicle exemption amounts?
A: Under Neb. Rev. Stat. § 25-1556, household goods are $3,582, tools and other professional supplies are $5,970, and motor vehicles are $5,970.

Q: How often do these amounts change?
A: Every five years beginning in 2023, adjusted for the cumulative change in the Consumer Price Index. The published figures apply through 2027.

Q: Can I rely on this Revenue Ruling?
A: A Nebraska Revenue Ruling is a general guidance document that is "advisory in nature but is binding on the Nebraska Department of Revenue until amended," and it applies generally rather than to a single taxpayer. But it can be superseded or made obsolete by a later ruling or a change in statute or regulation, so confirm you are looking at the current version before relying on it.

Citations and references

Statutes:

• Neb. Rev. Stat. § 25-1552(2) (personal property exemption; five-year CPI adjustment)
• Neb. Rev. Stat. § 25-1556(2) (household goods, tools/professional supplies, and motor vehicle exemptions; five-year CPI adjustment)

Source

• Landing page: Nebraska Revenue Rulings
• Original PDF: 2023-1

Original ruling text

Revenue Ruling 2023-1
September 19, 2023

Adjusted Dollar Limitations for Debtor Exemptions
This guidance document is advisory in nature but is binding on the Nebraska Department of
Revenue (DOR) until amended. A guidance document does not include internal procedural
documents that only affect the internal operations of the DOR and does not impose additional
requirements or penalties on regulated parties or include confidential information or rules and
regulations made in accordance with the Administrative Procedure Act. If you believe that this
guidance document imposes additional requirements or penalties on regulated parties, you
may request a review of the document.
This guidance document may change with updated information or added examples. The DOR
recommends you do not print this document. Instead, sign up for the subscription service at
revenue.nebraska.gov to get updates on your topics of interest.

Issue
Under Neb. Rev. Stat. § 25-1552(2) and 25-1556(2), every five years, beginning with the year 2023,
DOR must calculate adjusted dollar limitations for debtor exemptions reflecting the cumulative
percentage change over the preceding five years in the Consumer Price Index for All Urban
Consumers, as prepared by the United States Department of Labor, Bureau of Labor Statistics.

Conclusion
For 2023 through 2027, the following amounts apply:

Neb. Rev. Stat. § 25-1552
Property Type
Personal Property

Adjusted Exemption
Amount for 2023-2027
$ 5,970

Neb. Rev. Stat. § 25-1556
Property Type

Adjusted Exemption
Amount for 2023-2027

Household Goods

$ 3,582

Tools & Other Professional Supplies

$ 5,970

Motor Vehicles

$ 5,970

APPROVED:

James R. Kamm
Tax Commissioner
September 19, 2023