Disabled Veterans Offered Car Tax Break

By Sam Stevenson

Associate News Editor

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Thousands of disabled veterans will benefit from a motor vehicle tax break and fee exemption in the state of Nebraska.

Disabled and/or blind veterans can apply for the scheme, which begins next year and covers one vehicle used for personal transportation.

Newsweek contacted the U.S. Department of Veterans Affairs (VA) via email for comment.

Why It Matters

This initiative, signed into law in 2025, addresses ongoing affordability concerns for veterans living with service-connected disabilities.

State officials and veterans’ advocates characterize the exemption as a formal recognition of veterans’ service and an effort to ease living costs for those who have been injured or disabled during their military service.

The measure aligns Nebraska with a broader trend of increasing state-level support for disabled veterans nationwide, underscoring a continued legislative focus on veteran benefits.

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What To Know

Nebraska will offer a significant financial benefit to disabled veterans beginning January 1, 2026, by exempting them from paying motor vehicle tax and fees on one vehicle they own and use for personal transportation, according to a Nebraska Department of Veterans’ Affairs (NDVA) release.

The new exemption applies to both the Motor Vehicle Tax and the Motor Vehicle Fee associated with annual registration for a single vehicle per eligible veteran.

Other fees, such as the plate fee, sales tax, and wheel tax, still need to be paid.

Veterans must be Nebraska residents, own and use the vehicle for personal transport, and meet one of two definitions of a "disabled veteran" set by the law:

Service on active duty in the U.S. Armed Forces, separation under honorable conditions, and established existence of a service-connected disability (including those rated at 0%); or
Receipt of compensation, disability retirement benefits, or a pension administered by the VA or a military department.

To verify eligibility, veterans must apply to the Nebraska Department of Veterans’ Affairs (NDVA) Military & Veterans’ Registry.

Nebraska law requires veterans to submit paperwork such as Proof of Service documentation.

At registration, veterans can claim the exemption in person at their county treasurer’s office by notifying staff or online by selecting the "Disabled Veteran Tax Exemption" option.

Requests must be made within 30 days of a vehicle purchase, or before the final expiration date for renewals.

It follows a new law that is benefiting older military veterans on the Hawaiian island of Oahu by exempting them from motor vehicle registration fees.

Honolulu Mayor Rick Blangiardi announced a similar scheme to Nebraska last month, in which those eligible would be able to apply for the $20 fee to be cancelled under the new legislation, but state fees would still apply.

What People Are Saying

The NDVA said: "For eligibility questions, please reach out to our State Service Office or your County Veterans Service Officer."

What Happens Next

The Nebraska tax break is expected to benefit thousands of veterans and serves as one of several new legislative efforts aimed at supporting service members and their families. Eligible veterans are urged to check their eligibility requirements and apply soon to avoid delays during vehicle registration periods.

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