The education in the Omaha area is managed by several independent school districts. The largest among them is the Omaha Public Schools (OPS), which is the largest school district in Nebraska, serving over 53,000 students. OPS oversees major areas within the city, including downtown, South Omaha, and North Omaha, and operates around 80 schools. High schools in the OPS district include Omaha Central High School, Creighton Prep (private), and Omaha Northeast High School.

West Omaha and the Millard area are served by the Millard Public Schools, which is highly regarded for its academic achievements and extracurricular programs. The Millard district has approximately 24,000 students, making it the second-largest district in Nebraska. The Elkhorn area is served by the Elkhorn Public Schools, which has seen rapid population growth and significant new school construction in recent years. The Papillion and La Vista areas are managed by the Papillion-La Vista Public Schools.

Property tax is a major source of revenue for local governments (counties, cities, school districts, public facility districts, etc.) in Nebraska. The effective property tax rate in Douglas County, where Omaha is located, is about 1.8% to 2.2%, which is somewhat higher than the national average of around 1.1%. Property tax is calculated by multiplying the assessed value of the property by the tax rate, and in Nebraska, the assessed value for residential properties is based on 100% of the market value. Property taxes can be paid in full by December 31 or split into two payments: the first half due on April 1 and the second half on August 1.

Looking at the distribution of property tax levies in Douglas County, the school district receives the largest share. For the OPS district, about 50% to 60% of the property tax rate is used for school operating budgets. The remainder is distributed among various entities, including the Douglas County government, the city of Omaha, the Metropolitan Community College (MCC), the Omaha-Douglas Public Building Commission, and public health districts. It is helpful to estimate the annual property tax amount when purchasing real estate for budget planning.

The annual budget for the city of Omaha is over $1 billion. Major expenditures in the city budget include public safety (police and fire), public works (roads and water/sewer), parks and recreation, and administrative operations. The city budget is prepared annually by the mayor and submitted to the city council, where it undergoes review and approval. In recent years, Omaha has increased budget allocations for improving aging infrastructure, downtown redevelopment, and homeless support programs. City budget documents are available for public viewing on the official Omaha city website.

Nebraska imposes both income tax and sales tax. The state sales tax rate is 5.5%, and the city of Omaha adds an additional 1.5% city sales tax, resulting in a total sales tax of 7%. There are some exemptions on sales tax for groceries under Nebraska law. Nebraska's personal income tax applies a progressive rate ranging from 2.46% to a maximum of 6.84% based on income brackets. Notably, Nebraska is one of the states that imposes state income tax on Social Security retirement income under certain conditions, although discussions about tax relief on this issue have been ongoing in recent years.

Regarding the education budget, the annual budget for Omaha Public Schools (OPS) is over $800 million, with about half of that funded through property taxes. The remainder comes from Nebraska Department of Education grants, federal government grants (such as Title I), and other revenues. OPS serves a high percentage of low-income students and receives significant federal Title I support, as well as operating bilingual education programs and special education services. For those planning to invest in real estate or reside long-term, it is advisable to compare property tax rates and academic performance across different school districts.

Property tax relief benefits include the Homestead Exemption program for seniors (65 and older) and individuals with disabilities. If income and asset criteria are met, some or all of the property tax may be exempted, and applications must be submitted annually to the Nebraska Department of Revenue. Additionally, properties located in certain historic preservation districts within the city of Omaha may receive tax benefits during renovations. Specific eligibility requirements and application procedures can be checked through the Douglas County Assessor's office or the Nebraska Department of Revenue website.