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No Vehicle Licence Tax or Registration Fee — at 100%, With a VA-Funded Vehicle, or as a Surviving Spouse

One vehicle — or its replacement — free of Arizona vehicle licence tax and registration fee. Three routes reach it: a veteran certified 100% and drawing compensation on that basis; a vehicle acquired with VA financial aid, whatever the rating; and a surviving spouse, who keeps the exemption on one vehicle until remarriage or death and may renew it on the veteran's terms.

Verified August 27, 2026

What this benefit is

One vehicle — or its replacement — free of Arizona vehicle licence tax and registration fee. Three routes reach it: a veteran certified 100% and drawing compensation on that basis; a vehicle acquired with VA financial aid, whatever the rating; and a surviving spouse, who keeps the exemption on one vehicle until remarriage or death and may renew it on the veteran's terms.

What it's worth: No vehicle licence tax and no registration fee, on one vehicle — and it survives the veteran

  • Arizona’s vehicle licence tax is a value-based annual tax, so what this saves depends on the vehicle — newer and dearer vehicles save more.
  • A.R.S. 28-5802(A)(1) exempts a vehicle, or its replacement, acquired with financial aid from the U.S. Department of Veterans Affairs. That route does not depend on the rating, so an adaptive-grant vehicle qualifies below 100%.
  • A.R.S. 28-5802(A)(2) continues the exemption to the surviving spouse until remarriage or death. The surviving spouse may renew it on the veteran's terms, for one vehicle.
  • A separate Purple Heart route sits at 28-5802(C).

Who is entitled to it

  • The VA certifies you as one hundred percent disabled, drawing compensation on that basis.
  • Your home is in Arizona.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

  1. 1Bring the VA certification showing 100% disability with compensation drawn on that basis.
  2. 2Pick the vehicle deliberately — the exemption covers one vehicle or its replacement, so put it on the one with the highest licence tax.
  3. 3If you are paid at the 100% rate through individual unemployability rather than a schedular 100%, confirm with MVD before relying on it — the statute’s words are certification of one hundred percent disability, and we could not read how MVD treats IU.
File with
The Motor Vehicle Division, at registration or renewal
Documents you will need
va benefit summary letter
Annual
Claimed once a year.
Worth knowingThe exemption survives the veteran: it applies to the surviving spouse until remarriage or death, on the same single vehicle.
Worth knowingCo-ownership does not break it — a vehicle owned by the veteran and another party still qualifies.
Known gapThe statute keys on certification of one hundred percent disability with compensation drawn on that basis. Whether MVD treats individual unemployability as meeting that is not something we could read, so we flag it rather than assert either way.

Sources

Why only one source type: The statute on the legislature's own site states the exemption, the one-vehicle limit, the co-ownership rule and the surviving spouse carryover in terms.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.