Motor Vehicle Property Tax Exemption (100% Disabled)
Exemption from state property tax on up to two motor vehicles for 100% disabled veterans.
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Apply directly through the official Kentucky agency.
About this benefit
Eligibility
Veterans with a 100% service-connected VA disability rating. Effective for vehicles assessed on or after January 1, 2024 (HB25).
Covers
Exempts up to two motor vehicles from state property taxation. Kentucky's motor vehicle property tax rate is $0.45 per $100 of assessed value, so a vehicle assessed at $25,000 saves roughly $112.50/year per vehicle (up to $225/year for two vehicles).
How to apply
Apply through your local County Clerk's office with VA disability documentation.
Verified against official source
Last checked 2026-05-05 against apps.legislature.ky.gov. Always confirm current rates and rules with the Kentucky state agency before applying.
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 military retirement pay excluded from Kentucky state income tax.
Up to $31,110 income exclusion
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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