Disabled Vets Get Vehicle Tax Exemption Starting in 2026

Starting January 1, 2026, disabled veterans in Nebraska can receive a motor vehicle tax and fee exemption for one vehicle owned and used for their personal transportation. The new exemption is part of LB650, which passed and was signed into law in 2025.

The law provides two definitions of a “disabled veteran”, which are:

1. an individual who served on active duty in the armed forces, has separated under honorable conditions, and has established the present existence of a service-connected disability (including those rated at 0%); or

2. an individual who is receiving compensation, disability retirement benefits, or pension because of a public statute administered by the U.S. Department of Veterans Affairs (VA) or a military department.

 Veterans must apply to the Nebraska Department of Veterans’ Affairs (NDVA) Military & Veterans’ Registry, which can be found at veterans.nebraska.gov/registry, so their eligibility can be verified. Qualifying veterans who are already in the registry will need to have their registry information updated.

Disabled Vets Tax Exemption Flier (Click to enlarge)

For assistance with updating in Custer, Blaine, and Loup Counties, contact County Veterans Service Officer Emory Haynes at 308-872-2071. Contact information for other county veterans service officers can be found at veterans.nebraska.gov/cvso. An NDVA state service officer may also be able to provide assistance at 402-420-4021 or [email protected].

Veterans are encouraged to apply in advance of their registration or renewal as it may take up to 48 hours for information to be available to the Department of Motor Vehicles (DMV) after a registry application is approved.

When registering or renewing a vehicle in person, a qualifying veteran will need to inform the county treasurer’s staff they qualify for the exemption. When renewing online, they will need to select the “Disabled Veteran Tax Exemption” option on the online application.

Full details on the exemption, eligibility, application process, and more can be found at veterans.nebraska.gov/vehicletax.

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