The Maryland disabled veteran vehicle tax exemption waives the state’s 6.5% vehicle excise tax for veterans rated 100% service-connected disabled by the U.S. Department of Veterans Affairs, or paid at that rate based on individual unemployability. On a $25,000 vehicle that is $1,625 you don’t pay; on a $40,000 vehicle, $2,600. Qualifying veterans also get free disabled veteran license plates and permanent registration that never has to be renewed.
Who Qualifies
You need to meet all of the following:
- A VA disability rating of 100% service-connected, or compensation at the 100% rate based on individual unemployability, that is permanent and total in nature.
- An honorable discharge from the U.S. Armed Forces.
- Maryland residency, with the vehicle titled in Maryland and used for personal, non-commercial purposes.
- One personally owned vehicle in an eligible class: a passenger car, a multi-purpose vehicle, or a truck rated at one ton or less.
The exemption sits in Maryland Transportation Article Section 13-810, which removes vehicles registered under the state’s disabled veteran provisions from the excise tax that would otherwise apply at titling.1Maryland General Assembly. Maryland Transportation Article 13-810 – Exemptions
One boundary worth flagging: motorcycles are not listed among the eligible vehicle classes on the Maryland Department of Veterans & Military Families website. If a motorcycle is your primary vehicle, confirm eligibility with the MVA before applying.2Maryland Department of Veterans & Military Families. Motor Vehicle Administration Benefits and Vehicle Registration
What the Exemption Saves You
Maryland’s vehicle excise tax is 6.5% of a vehicle’s fair market value for non-rental vehicles, effective July 1, 2025.3Maryland Department of Transportation Motor Vehicle Administration. Industry Bulletin – HB 352 Changes The tax is normally due when you title the vehicle. With the exemption, that line is zero.
The exemption applies each time you title an eligible vehicle. If you sell one car and buy another, the new one qualifies too, as long as you still meet the eligibility rules.
How to Apply
Two documents do most of the work, along with one MVA form.
Pull Your DD-214 and VA Disability Letter
You need your DD Form 214 (Certificate of Release or Discharge from Active Duty) showing honorable discharge, and a letter from the VA confirming your 100% service-connected disability rating. The fastest way to get the VA letter is online. Sign in to VA.gov with a verified Login.gov or ID.me account and download your Benefit Summary Letter directly.4Veterans Affairs. Download VA Benefit Letters Check the mailing address the VA has on file before you download, since it prints on the letter. You’ll need Adobe Acrobat Reader to open the PDF.
File Form VR-119
Fill out the Application for Maryland Vehicle Excise Tax Credit for Military Personnel (Form VR-119), available on the MVA’s vehicle registration forms page or at any MVA branch office.5Maryland Department of Transportation Motor Vehicle Administration. Vehicle Registration Forms The form asks for your personal information, vehicle details, and proof of Maryland residency. Submit it with your DD-214 and VA disability letter to the MVA in person, or by mail to the Vehicle Tax Credit Unit. Keep copies of everything.
If you’re new to Maryland, you have 60 days from establishing residency to title your vehicle.2Maryland Department of Veterans & Military Families. Motor Vehicle Administration Benefits and Vehicle Registration Apply for the exemption at the same time you title the vehicle. Otherwise you’ll pay the tax up front and have to chase a refund.
Free License Plates and Permanent Registration
Veterans who qualify for the excise tax exemption are also eligible for disabled veteran license plates at no charge, on the same 100% rating standard.2Maryland Department of Veterans & Military Families. Motor Vehicle Administration Benefits and Vehicle Registration
The registration itself is permanent. Qualified veterans receive permanent registration cards and stickers, so there’s no periodic renewal trip to the MVA as long as the disability rating stays permanent and total.2Maryland Department of Veterans & Military Families. Motor Vehicle Administration Benefits and Vehicle Registration If your rating changes or you transfer the vehicle, contact the MVA to update your records.