Lincoln Taxpayers Unlikely to Catch a Tax Break as LPS, City Release Budget Plans
by Lewis Thune
(Picture credit City of Lincoln)
Amid concerns over significant statewide rises in assessed property values, tax levies in Nebraska’s capital city are unlikely to fall this year.
The 2026-2027 preliminary budget for Lincoln Public Schools (LPS), unveiled Tuesday, will maintain the current levy rate of $1.02 per $100 of assessed property value. This follows on Mayor Leirion Gaylor Baird’s proposed 2026-2028 city budget, which also keeps the city’s current levy rate of $0.2973 per $100 of assessed property value.
Gaylor Baird’s budget called for a 4.6% and 5.7% increase in spending over the next two years. The increase in budget was driven, in part, by a proposal to add 89 new city employees, as well as the construction of the city’s new central library.
LPS’s budget calls for a 5% increase in spending, mostly going towards salary increases and new staffing hires. The district said it is adding new staff in four different areas despite the LPS’s expectation of declining enrollment for the foreseeable future.
With the average Lancaster County home currently assessed at $311,267.00, the common Lincoln homeowner can expect to pay around $4,100 in city and school board taxes. These account for the bulk of levy taxes; all other levies in Lincoln — including the Lancaster County levy — made up only 15.72% of Lincoln’s total taxes levied in fiscal year 2025.
In response to an inquiry from The Plains Sentinel, a spokesperson for the Lancaster County Board shared that the board had not yet received final valuations from the Lancaster County Assessor, and as such was unable to answer whether and to what degree the county’s levy would change. The Lancaster County levy from 2025 sat at $0.2145 per $100 of assessed property value, a 3.54% decrease from 2024.
But even in the event of a significant decrease from Lancaster County, steady levy rates from the city and public schools will mean an increased tax burden for Lincoln property owners. According to the Nebraska Department of Revenue’s Property Assessment Division, real property value in Lancaster County increased 5.51% this year. The statewide average was 6.41%.
Total property value in Lancaster County now exceeds $45 billion, up 33% – or $11.5 billion – from FY 2021, 5% greater than the statewide average. Total taxes levied in the county decreased only 17.9% from 2021 to 2025, which still exceeds the state average by 2.2%.
Total tax revenue in Lancaster increased 18.73% – nearly $119 million – over the same, also exceeding the statewide average.
But these stats fail to tell the whole story – public service entity and railroad property have held steady or fallen in value over the 4-year period.
The assessed value of real agricultural, residential, and commercial/industrial property in Lancaster County has increased a total of 45% in the period. Even with levy drops, property owners have had their taxes go up nearly 20%.
Outside the city and school district, Lancaster County landowners have seen even higher increases than Lincoln homeowners.
Last year alone, the assessed value of Lancaster’s agricultural land, which covers 65-70% of the county, shot up 42% compared to a levy decrease of 6.7%. Agricultural landowners covered a 32% tax revenue increase, quadruple the state average.
The Nebraska Department of Revenue’s Property Assessment Division estimates a 0.75% drop in value for the same land this year, but levies would have to fall more than 20% for the tax burden of Lancaster landowners to return to previous levels.
Pillen Slams Valuation Increases, Launches Hotline
Property tax valuations have been on the rise across the state. The statewide average increase in assessed value of real property – absent growth – is 5.3% with fourteen different rural counties facing increases in excess of 10%.
Governor Jim Pillen last week accused local county assessors of “printing money” with how much valuations have increased.
“As valuations go up, no levies are changed. It’s just a printing press for local government. Each of us gets frustrated when we get something from government, and it hides behind state statutes,” Pillen said during his monthly call-in show. “What’s going on with county assessors across the state is unacceptable in my eyes, and we have to get it fixed, and we have to get it fixed at the state level.”
On Tuesday, Pillen announced he was launching a new “property tax hotline” for taxpayers to taxpayers to air their complaints to “help to ensure that all Legislative members understand how important this issue is to you.”
“We must show the Legislature that this is a crisis that demands action and a real solution. Together, we can build the case for meaningful property tax relief for Nebraskans,” Pillen said.
The governor’s efforts to pass a major property tax overhaul has been stymied in recent years between budget shortfalls and disagreements between lawmakers on how best to approach the issue.
— Lewis Thune is a writing fellow with The Plains Sentinel.