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).
Who qualifies
- Requires 10%+ VA disability rating
- Tennessee residency
Details
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.
Always confirm current rates and rules with the Tennessee state agency before applying.
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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