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No Purchase and Use Tax and No Title Fee on a VA-Assisted Vehicle

Where a veteran acquires a motor vehicle WITH FINANCIAL ASSISTANCE FROM THE U.S. DEPARTMENT OF VETERANS AFFAIRS, Vermont exempts the purchase from the motor vehicle purchase and use tax under 32 V.S.A. §8911, and from the certificate of title fee under 23 V.S.A. §2002. The route in is the federal VA automobile or adaptive equipment grant, so this is disability-based in practice even though Vermont states no rating threshold of its own. Raise it with the DMV at the point of titling.

Verified August 27, 2026

What this benefit is

Where a veteran acquires a motor vehicle WITH FINANCIAL ASSISTANCE FROM THE U.S. DEPARTMENT OF VETERANS AFFAIRS, Vermont exempts the purchase from the motor vehicle purchase and use tax under 32 V.S.A. §8911, and from the certificate of title fee under 23 V.S.A. §2002. The route in is the federal VA automobile or adaptive equipment grant, so this is disability-based in practice even though Vermont states no rating threshold of its own. Raise it with the DMV at the point of titling.

What it's worth: Purchase and use tax and the title fee both waived

  • Exempt from the MOTOR VEHICLE PURCHASE AND USE TAX under 32 V.S.A. §8911.
  • AND from the CERTIFICATE OF TITLE FEE under 23 V.S.A. §2002.
  • The vehicle must be ACQUIRED WITH FINANCIAL ASSISTANCE FROM THE U.S. DEPARTMENT OF VETERANS AFFAIRS.
  • In practice that means the federal VA AUTOMOBILE OR ADAPTIVE EQUIPMENT GRANT.
  • VERMONT STATES NO SEPARATE RATING THRESHOLD; the federal grant carries its own disability test.
  • The saving scales with the purchase price, since the purchase and use tax is a percentage.

Who is entitled to it

  • You served in the U.S. armed forces.
  • The VA assisted with the vehicle.
  • Vermont vehicle titling and registration.

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. 1Raise it at the point of titling, not afterwards. Recovering a paid purchase and use tax is far more work.
  2. 2Have the VA documentation of the financial assistance toward the vehicle.
  3. 3Ask for both exemptions — the purchase and use tax AND the title fee are separate provisions.
  4. 4If you are applying for the federal VA automobile grant, deal with the Vermont tax question at the same time.
  5. 5Keep the documentation with the title papers in case it is queried later.
Form
Raised with the DMV at titling
File with
Vermont Department of Motor Vehicles
Documents you will need
va benefit summary letter
No renewal
Once granted it does not need renewing.
Worth knowingThe federal VA automobile grant is the usual route in. If you are pursuing that grant, ask about the Vermont exemptions at the same time rather than discovering them at the counter.

Sources

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