Motor Vehicle Tax and Fee — Exempt on One Vehicle, Even at 0%
From 1 January 2026, a veteran with an established service-connected disability — a 0% rating counts — or receiving federal veterans affairs compensation, disability retirement or pension, is exempt from the motor vehicle tax and motor vehicle fee on one personally used vehicle. Blind veterans have their own route. Plate fees, sales tax and wheel tax remain due.
Verified August 22, 2026
What this benefit is
From 1 January 2026, a veteran with an established service-connected disability — a 0% rating counts — or receiving federal veterans affairs compensation, disability retirement or pension, is exempt from the motor vehicle tax and motor vehicle fee on one personally used vehicle. Blind veterans have their own route. Plate fees, sales tax and wheel tax remain due.
What it's worth: Motor vehicle tax and motor vehicle fee exempt on one vehicle owned and used for personal transportation
- A service-connected disability must be established with the federal veterans affairs department — any percentage including 0% — or the veteran must be receiving compensation, disability retirement or pension; plate fee, sales tax and wheel tax stay due.
Who is entitled to it
- You separated under honorable conditions.
- You are a resident of this state.
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How to claim it
Deadline: Within 30 days of a purchase; before the final day of the expiration month at renewal- 1Enrol in the state Military and Veterans' Registry first, with documentation of the service-connected disability or benefit receipt — allow up to 48 hours for the registration system to see the approval.
- 2Then claim the exemption at vehicle registration: in person, tell the county treasurer staff; online, tick the disabled veteran tax exemption option; by mail, include a note with the request.
- 3Timing is unforgiving: within 30 days after a vehicle purchase, or before the final day of the expiration month at renewal. A missed window costs the year.
- 4One vehicle at a time, owned and used for personal transportation. The exemption can move to another vehicle at sale or during the expiration month. Plate fees, sales tax and any wheel tax are not covered.
- Form
- Military and Veterans' Registry enrolment, then the exemption request at registration
- File with
- County treasurer of the county where the vehicle is registered, after enrolling in the state registry
- Documents you will need
- va benefit summary letter
- Annual
- Claimed once a year.
Sources
- operating · published policyDepartment of Veterans' Affairs — disabled/blind veteran motor vehicle tax and fee exemption page, quoting the LB650 definitions
Why only one source type: The state veterans affairs page quotes the operative definitions, the one-vehicle limit, the covered charges and the deadlines in terms; the legislature's statute site refused connections this session.
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.