Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED
Proposed exemption from state property tax on up to two motor vehicles for 100% disabled veterans. NOT currently law — the 2023 bill (HB25) died in committee.
State BenefitKentuckyTax Benefits
Verified May 12, 2026 against apps.legislature.ky.gov
At a glance
- Benefit type
- Tax Benefits — Kentucky
- Who it's for
- Veterans
- VA rating needed
- 100% or higher
- Estimated value
- Not currently available (proposed legislation did not pass)
- Where it applies
- Kentucky
- Last verified
- May 12, 2026
What is Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?
Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED is a Kentucky tax benefits benefit for veterans. Proposed exemption from state property tax on up to two motor vehicles for 100% disabled veterans. NOT currently law — the 2023 bill (HB25) died in committee. Requires 100%+ VA disability rating. The listed value is Not currently available (proposed legislation did not pass).
Who qualifies
- Veterans
- Requires 100%+ VA disability rating
- Kentucky residency
What Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED covers
Status
NOT in effect. HB25 (2023 Regular Session) would have created a new section of KRS Chapter 132 to exempt up to two motor vehicles owned by 100% service-connected disabled veterans from state and local property taxation, effective for vehicles assessed on or after January 1, 2024. The bill was introduced on January 3, 2023, referred to the House Appropriations & Revenue Committee on February 23, 2023, and died at the end of the 2023 session without passage. No successor has been enacted as of mid-2026. Verify with the Kentucky Department of Veterans Affairs before relying on this benefit.
If enacted in the future, the exemption would cover up to two motor vehicles. Kentucky's state motor vehicle property tax rate is $0.45 per $100 of assessed value.
How to apply (if/when enacted): Apply through your local County Clerk's office with VA disability documentation.
Verified information & sources
- Last verified
- May 12, 2026
- Official source
- apps.legislature.ky.gov
- Apply at
- veterans.ky.gov
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
How VetUnlock verifies benefitsFrequently asked questions about Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED
Who qualifies for Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?
Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED is for Veterans; requires 100%+ VA disability rating; kentucky residency. See the eligibility details on this page and confirm with the official source before applying.
What VA disability rating do I need for Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?
Requires 100%+ VA disability rating.
How much is Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED worth?
The listed value is Not currently available (proposed legislation did not pass). Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.
Other Kentucky Tax Benefits
- Active Duty Military Pay Income Tax ExclusionAll active duty military pay is 100% exempt from Kentucky state income tax.
- Military Retirement Pay Income Tax ExclusionUp to $31,110 income exclusion (general pension exclusion; more available via Schedule P)Up to $31,110 per year of pension/retirement income (including military retirement pay) excluded from Kentucky state income tax; military retirees with pensions exceeding $31,110 may exclude additional amounts via Schedule P based on pre/post-1998 service.
- VA Disability and Military Disability Retirement Pay Tax ExclusionVA disability compensation, DIC, and military disability retirement pay are fully excluded from Kentucky income tax.
- Homestead Property Tax Exemption (100% Disabled)$490-$590/year in property tax savings$49,100 deducted from assessed home value for 100% disabled veterans, saving approximately $490-$590/year.