California Exempt License Plates
In the state of California, an exempt license plate is a special identifier issued to vehicles owned and operated by government entities or certain qualifying organizations. These plates signify that the vehicle is not required to pay the standard registration fees or vehicle license taxes that private citizens pay every year.
You can easily spot these plates on the road; they typically feature a small "E" inside a diamond or octagon shape. In 2026, these plates remain a critical tool for law enforcement and the public to identify vehicles being used for official business, such as police cruisers, city buses, and state-owned trucks. However, because they carry significant privileges, the rules for getting and keeping them are very strict.
What are exempt license plates?
Exempt license plates are special California license plates issued exclusively to vehicles owned by government agencies and certain qualifying organizations that perform essential public services. The word "exempt" refers to the exemption from standard vehicle registration fees, the Vehicle License Fee (VLF), and most county-specific surcharges that private vehicle owners must pay annually.
These plates are easily identifiable by the letter "E" displayed inside a diamond or octagon shape. This distinctive marking allows law enforcement officers, parking enforcement personnel, and the public to quickly identify vehicles being used for official government or qualifying public service purposes.
The exempt plate system provides financial relief to government agencies, helps the public identify official government vehicles for transparency, and allows law enforcement to quickly verify whether a vehicle claiming government status is legitimately authorized.
Who qualifies for exempt license plates?
Not every organization can get an exempt license plate. Eligibility is limited to entities that perform essential public services.
Government Entities
This is the most common category:
Federal Government
Vehicles owned by the United States government and used within California, including vehicles operated by federal agencies such as the FBI, U.S. Postal Service, National Park Service, and Department of Defense.
State Agencies
Vehicles used by California state departments like Caltrans, the California Highway Patrol, state parks, state universities, and other state agencies. Any vehicle owned by the State of California and used for official state business qualifies.
Local Agencies
City-owned vehicles, county work trucks, public school district buses, community college vehicles, and municipal utility vehicles all qualify. This includes police cars, fire trucks, public works vehicles, and any vehicle owned by a city, county, or local government special district.
Non-Profit and Charitable Organizations
Certain private organizations that perform government-like functions or essential public services can also qualify, though requirements are more stringent:
Volunteer Fire Departments
In rural areas where professional fire departments don't exist, volunteer fire departments operating emergency response vehicles can qualify if officially recognized and authorized to provide fire protection services.
American Red Cross
Vehicles owned and operated by the American Red Cross for disaster response, emergency services, and humanitarian relief qualify due to the organization's critical public safety role.
Mobile Medical Clinics
Specific mobile clinics providing essential healthcare services to underserved populations may qualify, particularly if operating under government contracts or providing services that would otherwise be provided by government agencies.
Important Limitation
Simply having non-profit status (such as a 501(c)(3) designation) does NOT automatically qualify an organization for exempt plates. The vehicle must be used exclusively for a qualifying public purpose, such as firefighting, emergency medical response, or disaster relief.
Federally Recognized Indian Tribes
Under the California Vehicle Code, vehicles owned by federally recognized Indian Tribes and used for tribal government business are eligible for exempt registration and plates.
How do I apply for exempt license plates?
If your agency or organization qualifies, you must follow a specific administrative process. Unlike standard plates, you cannot apply through a retail kiosk.
Step 1: Complete the Required Forms
The primary document is the Exempt License Plate Request (Form REG 5050). This certification form requires you to state under penalty of perjury that the vehicle will be used only for official business. You'll provide the vehicle identification number (VIN), make, model, year, the agency or organization name, the vehicle's purpose, and contact information for the responsible official.
Step 2: Provide Proof of Ownership and Status
Submit the vehicle's title (the "Pink Slip") showing the qualifying agency as the registered owner. The ownership must be in the name of the government entity or qualifying organization; vehicles owned by individual employees don't qualify.
Non-profit organizations must provide additional documentation, including your official determination letter or certification proving your organization is authorized to operate emergency equipment, proof of insurance, and evidencethat the vehicle will be used exclusively for qualifying purposes.
Step 3: Submit Your Application
Applications are handled by the DMV Special Processing Unit in Sacramento. You can drop off paperwork at a local DMV field office (they'll forward it) or mail directly to:
Department of Motor Vehicles
Special Processing Unit, MS D238
P.O. Box 932345
Sacramento, CA 94232-3450
Step 4: Wait for Approval
The Special Processing Unit reviews applications to verify eligibility. Processing typically takes 4-8 weeks. If approved, your exempt plates will be mailed to your address. If denied, you'll receive a letter explaining the reason.
How much do exempt license plates cost?
The term "exempt" specifically refers to exemption from standard registration fees and vehicle taxes, but there are still some costs:
Standard Registration Fees
$0 - Qualifying vehicles pay zero dollars for the annual registration fee that private vehicle owners must pay.
Vehicle License Fee (VLF)
$0 - Exempt vehicles also pay no Vehicle License Fee, which is typically calculated as a percentage of the vehicle's value and can amount to hundreds of dollars annually.
County Surcharges
$0 - Most county-specific surcharges and fees are also waived.
Service Fees
Approximately $28 - In 2026, there is typically a small, one-time administrative service fee (usually around twenty-eight dollars) when you first apply. This covers manufacturing the physical plates and processing your application.
Annual Renewals
$0 (Usually) - Most exempt vehicles do not pay a renewal fee every year, but they must keep their records updated with the DMV to ensure exempt status remains valid.
For a typical vehicle, private owners might pay $300-$500 annually in combined fees. Over 10 years, exempt status could save $3,000-$5,000 per vehicle. For agencies operating large fleets, savings can be substantial.
What are the benefits of having exempt license plates?
First of all, the exemption from annual registration fees, Vehicle License Fees, and most county surcharges can save several hundred dollars per year per vehicle. For agencies with large fleets, annual savings can reach tens of thousands of dollars.
Parking Privileges
In many California cities, exempt vehicles can park in "government only" zones or are exempt from paying at meters while performing official duties. Rules vary by city, and exemptions typically apply only during official business. Always check local ordinances.
Public Identification and Law Enforcement Recognition
Exempt plates help the public identify official government vehicles and allow quick recognition by law enforcement, reducing unnecessary stops for vehicles engaged in legitimate official business.
What are the restrictions and limitations of exempt plates?
While exempt plates provide valuable benefits, they come with strict rules and consequences for violations.
Prohibition on Private Use
Vehicles with exempt plates must be used exclusively for official business. You cannot use exempt vehicles for personal errands, commuting (unless specifically authorized as part of on-call duty), or any non-official purpose.
Strict Audits and Oversight
The DMV and State Controller's Office perform regular audits including reviews of mileage logs, GPS tracking data, maintenance records, and fuel purchases. Auditors may conduct spot checks of exempt vehicles during off-hours or in unexpected locations.
Penalties for Misuse
- Immediate revocation of exempt status
- Substantial fines (potentially thousands of dollars)
- Criminal charges for misuse of government property or fraud
- In serious cases, entire fleets may lose exempt status
Record-Keeping
Organizations must maintain detailed records including vehicle assignment logs, maintenance records, fuel purchases, and trip logs. Records must be retained for several years and available during audits.
What happens to exempt plates when a vehicle is sold?
Exempt plates stay with vehicles only while owned by the qualifying agency or organization.
Selling Government Vehicles
If a government agency sells an exempt vehicle to a private citizen, the exempt plates must be removed and returned to the DMV before the sale. The new owner must apply for standard plates and pay all regular fees and taxes. Exempt status doesn't transfer—it's tied to qualifying ownership, not the vehicle.
Retiring Vehicles
California law requires exempt plates to be returned to the DMV within 10 days if a vehicle is totaled or retired from service.
Transferring Between Qualifying Organizations
If ownership transfers from one qualifying agency to another, exempt status can continue with proper paperwork filed with the DMV.
Do I need to renew exempt license plates?
While exempt vehicles don't pay annual renewal fees, they must meet certain requirements:
Annual Certification
Some agencies must file annual certifications confirming vehicles continue to be used for qualifying purposes.
Updated Registration Records
Vehicles must maintain current DMV records, including address changes and changes in vehicle use or the responsible department.
Inspection Requirements
Emergency vehicles like ambulances and fire trucks must undergo regular safety inspections.
No Registration Stickers
Exempt plates don't display annual stickers since there's no paid registration that expires.
Can special equipment vehicles get exempt plates?
Special equipment vehicles have a different classification than standard exempt vehicles.
Special Identification Plates (REG 88)
Some special equipment used exclusively on private property (like a forklift used only at an airport) might be exempt from standard registration but require a Special Identification Plate using Form REG 88 rather than a standard exempt "E" plate.
Off-Highway Equipment
Some government-owned off-highway equipment may not require plates if used only off-road. If they occasionally travel on public roads, they may need standard plates or special permits.
Exempt "E" plates are specifically for vehicles that regularly operate on public roads as part of official business.
What should I do to properly manage exempt vehicles?
Keep Required Paperwork in the Vehicle: Always keep a copy of the current registration to prove exempt status if inspected.
Return Plates Promptly: California law requires exempt plates to be returned to the DMV within 10 days if a vehicle is totaled, retired, or sold.
Update Your Address and Information: Notify the DMV of any address changes or changes in the responsible department to ensure correspondence reaches the right person.
Train Drivers and Staff: Ensure everyone who drives exempt vehicles understands the restrictions on private use to avoid violations.
Maintain Detailed Records: Keep comprehensive records of vehicle use, including mileage logs, fuel purchases, and maintenance records for audits.
Establish Clear Use Policies: Develop written policies defining authorized official use to avoid confusion.
California's exempt license plate system reduces costs for government agencies and qualifying organizations while maintaining accountability through strict rules and oversight. By understanding these requirements and maintaining compliance, qualifying organizations can benefit from exempt status while fulfilling their public service missions effectively.