The Department of Veterans Affairs provides reminders (example below) to disabled veterans and their surviving spouses about eligibility for certain tax, license or fee-related benefits. This occasionally leads to questions about tax on vehicles.
Following a request from a dealer for clarification on “vehicle tax relief” benefits, MADA reached out to the Michigan Department of Treasury to confirm that Michigan does not provide a sales/use tax exemption on a vehicle purchased by a disabled veteran or his/her surviving spouse.
However, some specialty plates issued by the Secretary of State are eligible for free vehicle registration. Disabled veteran (DV) plates are included in this group.
The Michigan Vehicle Code provides an exemption from ad valorem taxes collected as part of vehicle registration for certain plates. The tax exemption does not extend to all veterans, nor does it allow a vehicle to be purchased tax-free.
These special plates can only be processed through an SOS branch. Dealers can transfer a plate for a customer who purchases a vehicle, but a dealer cannot transfer/renew registration for these specialty plates.
For more information on this topic see the Michigan Vehicle Code:
- 257.803f Special registration plates for totally disabled veterans and surviving spouses
- 257.801 Registration taxes on vehicle; schedules; exemption from ad valorem taxes on vehicles
Reviewed 10/2025
