Nebraska Homestead Exemption. Nebraska Homestead Exemption Application, Form 458.The homestead can't exceed one acre in a city or 160 acres in a rural area. How to Apply for Homestead Exemptions Homestead applications must be filed with the county assessor after February 1, and on or before June 30 of each year. Nebraska Homestead Exemption applications must be filed with local county assessors between Feb. A homestead exemption reduces the amount of property taxes homeowners owe on their legal residence. The Nebraska Homestead Exemption program is a property tax relief program for qualified individuals who own a home in Nebraska. Through the homestead exemption, you may be able to exclude part of your property's value from taxation. The Industry Leader in Property Appraisal and Tax Software. Under the act, a homesteader only had to be the head of the household or at least 21 years old to claim 160 acres of land.