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.
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
- 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
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.
Frequently 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?▾
What VA disability rating do I need for Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?▾
How much is Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED worth?▾
How do I apply for Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?▾
Where can I verify Motor Vehicle Property Tax Exemption (100% Disabled) - PROPOSED, NOT ENACTED?▾
Other Kentucky Tax Benefits
Active Duty Military Pay Income Tax Exclusion
All active duty military pay is 100% exempt from Kentucky state income tax.
Military Retirement Pay Income Tax Exclusion
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.
Up to $31,110 income exclusion (general pension exclusion; more available via Schedule P)
VA Disability and Military Disability Retirement Pay Tax Exclusion
VA disability compensation, DIC, and military disability retirement pay are fully excluded from Kentucky income tax.
Homestead Property Tax Exemption (100% Disabled)
$49,100 deducted from assessed home value for 100% disabled veterans, saving approximately $490-$590/year.
$490-$590/year in property tax savings
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