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🚗Alabama · Transportation

VA-Funded Vehicle Tax & License Fee Exemption

Vehicles owned by disabled veterans paid for by the VA are exempt from all license fees and ad valorem taxes.

Available to any veteran

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Apply directly through the official Alabama agency.

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About this benefit

Eligibility

Disabled veteran who owns a vehicle purchased in whole or part by the VA.

Covers

Exemption from all license fees and ad valorem (property) taxes on the vehicle (per AL Code 40-12-254).

Estimated savings

Several hundred dollars per year depending on vehicle value.

How to apply

Apply at your county license/tag office with VA documentation.

Verified against official source

Last checked 2026-05-05 against law.justia.com. Always confirm current rates and rules with the Alabama state agency before applying.

Other Alabama Transportation

Veteran License Plate Issuance Fee Waiver

All veterans issued a distinctive veteran license plate are exempt from the issuance fee.

Disabled Veteran Vehicle Registration Fee Exemption

Service-connected disabled veterans are exempt from registration fees on their veteran license plate.

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