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State Benefit·Tennessee·🏛️Tax Benefits

Specially Adapted Vehicle Tax Exemption

Sales tax exemption on motor vehicles sold/given/donated to disabled veterans receiving a VA automobile grant, plus exemption on automotive adaptive equipment (TCA 67-6-353).

Verified May 12, 2026againsttn.gov

At a glance

Benefit type
Tax Benefits — Tennessee
Who it's for
Veterans
VA rating needed
10% or higher
Estimated value
Thousands in tax savings
Where it applies
Tennessee
Last verified
May 12, 2026

What is Specially Adapted Vehicle Tax Exemption?

Specially Adapted Vehicle Tax Exemption is a Tennessee tax benefits benefit for veterans. Sales tax exemption on motor vehicles sold/given/donated to disabled veterans receiving a VA automobile grant, plus exemption on automotive adaptive equipment (TCA 67-6-353). Requires 10%+ VA disability rating. The listed value is Thousands in tax savings.

Who qualifies

Veterans
  • Requires 10%+ VA disability rating
  • Tennessee residency

How to apply

Apply through the official Tennessee agency.

Open application

What Specially Adapted Vehicle Tax Exemption covers

Overview

Eligibility (TCA 67-6-353): Veteran or active-duty service member with a service-connected disability under 38 U.S.C. 3901 who receives a VA automobile grant. The sales/use tax exemption is limited to the portion of the sales price that exceeds the grant amount. Automotive adaptive equipment necessary for safe operation is also exempt when sold or given to an honorably discharged disabled veteran with a service-connected disability under 38 U.S.C. 3901. Seller must retain a copy of VA Form 10-1394 or 21-4502.

Verified information & sources

Last verified: May 12, 2026

Official source: tn.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.

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Frequently asked questions about Specially Adapted Vehicle Tax Exemption

Who qualifies for Specially Adapted Vehicle Tax Exemption?▾
Specially Adapted Vehicle Tax Exemption is for Veterans; requires 10%+ VA disability rating; tennessee residency. See the eligibility details on this page and confirm with the official source before applying.
What VA disability rating do I need for Specially Adapted Vehicle Tax Exemption?▾
Requires 10%+ VA disability rating.
How much is Specially Adapted Vehicle Tax Exemption worth?▾
The listed value is Thousands in tax savings. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Specially Adapted Vehicle Tax Exemption?▾
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 Specially Adapted Vehicle Tax Exemption?▾
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 Tennessee Tax Benefits

No State Income Tax

Tennessee has no state income tax; military retirement pay, VA disability compensation, and TSP distributions are not taxed.

Property Tax Relief for Disabled Veterans

Property tax relief calculated on the first $175,000 of market value of the primary residence for qualifying disabled veterans.

$1,000-$3,000+/year

County Motor Vehicle Privilege Tax Exemption

Exemption from county motor vehicle privilege tax (wheel tax) for 100% P&T disabled veterans and former POWs (TCA 5-8-102).

$25-$100/year

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