What a California Exempt Plate Is and Who Can Get One

A California exempt license plate (also called a nonprofit plate) removes the vehicle registration fee for cars owned by may have access to nonprofits. The plate itself looks like a standard California plate but displays "EXEMPT" across the top. Your nonprofit still pays the one-time $20 process fee to the Department of Motor Vehicles, but you avoid the annual registration renewal fee that other vehicle owners pay — a savings that ranges from roughly $200 to $400 per year depending on the vehicle's value.

Not every nonprofit qualifies. The organization must be registered with the California Secretary of State as a nonprofit corporation, hold 501(c)(3) status from the IRS, and use the vehicle for the nonprofit's charitable or educational work. The vehicle cannot be used for personal benefit or private gain, and it cannot be a commercial vehicle or one used for hire.

You will need to own the vehicle outright or have the nonprofit listed as the registered owner. If the vehicle is financed, the lender's name appears on the title, and most lenders will not allow an exempt plate on a vehicle they hold a lien against.

Key Takeaways

  • Your nonprofit must be a California-registered nonprofit corporation with current 501(c)(3) status from the IRS before you can request an exempt plate.
  • The vehicle must be owned by the nonprofit (not an individual), and you must use it for the nonprofit's charitable or educational mission, not personal use.
  • You will submit Form REG 5 (process for Exempt License Plates) to the DMV along with proof of nonprofit status and vehicle ownership documents.
  • The DMV processes exempt plate requests in roughly four to six weeks, and you will receive the plate by mail once approved.
  • If your nonprofit loses its 501(c)(3) status or stops using the vehicle for nonprofit work, you must return the exempt plate and register the vehicle normally.

Documents You Need to Gather Before You explore

Start by collecting the paperwork the DMV requires. You will need the vehicle's current registration card (the pink slip you receive when you register), the vehicle's title showing the nonprofit as owner, and proof that your nonprofit is registered with California and holds 501(c)(3) status.

For nonprofit status, the DMV accepts a copy of your IRS information letter (the letter the IRS sent confirming 501(c)(3) status) or a current IRS Form 990-N, 990-EZ, or 990 tax return. If you have neither, you can request a verification letter from the IRS by calling 877-829-5500 or visiting irs.gov. You will also need a copy of your California nonprofit corporation registration, which you can read from the Secretary of State's website or request from your nonprofit's registered agent.

If the vehicle title lists a lienholder (a bank or finance company), you cannot proceed. Contact the lienholder and ask whether they will consent to an exempt plate. Most will not, because the exempt status affects the vehicle's value and their security interest. If the lienholder refuses, you will need to pay off the loan first.

Completing and Submitting Form REG 5

The process form is Form REG 5: process for Exempt License Plates, available on the DMV website or at any DMV office. Fill in your nonprofit's legal name, the nonprofit's mailing address, and the vehicle information (year, make, model, VIN, and current license plate number). You will also enter the nonprofit's IRS Employer Identification Number (EIN), which appears on your IRS information letter.

In the section asking for the reason the vehicle qualifies for exemption, write a brief description of how the nonprofit uses the vehicle — for example, "Transportation for seniors to medical appointments" or "Delivery of meals to homebound clients." The DMV uses this to confirm the vehicle serves the nonprofit's mission.

You have three ways to submit the form: mail it with your supporting documents to your local DMV office, submit it in person at a DMV office, or use the DMV's online portal if your county offers it. Check the DMV website to see whether your county accepts online submissions. Mailing usually takes longer (two to three weeks for processing plus mail time), while in-person submission gets your process into the queue when ready.

Include a check or money order for $20 made payable to the Department of Motor Vehicles. Do not send cash. Attach copies (not originals) of your IRS information letter, California nonprofit registration, vehicle title, and current registration card.

What Happens After You Submit Your process

The DMV will review your process to confirm that your nonprofit is registered, that it holds current 501(c)(3) status, and that the vehicle is owned by the nonprofit. This review typically takes four to six weeks. If the DMV needs more information, they will mail you a notice asking for it — usually a clarification about how the vehicle is used or a missing document.

If your process is approved, the DMV will mail you the exempt plate and a new registration card. You will need to install the plate on your vehicle and keep the new registration card in the vehicle. The exempt status lasts as long as your nonprofit maintains its 501(c)(3) status and continues to use the vehicle for nonprofit work.

If the DMV denies your process, they will send you a letter explaining why. Common reasons include incomplete nonprofit registration, lapsed 501(c)(3) status, or a vehicle title that does not list the nonprofit as owner. You can reapply once you have corrected the issue.

Renewing Your Exempt Plate and Staying Compliant

Once you have an exempt plate, you do not pay registration renewal fees. However, you must still renew your registration every two years. The DMV will mail you a renewal notice. Complete it and return it to the DMV — there is no fee, but you must submit the form to keep your registration current. If you do not renew, your registration will lapse and you cannot legally drive the vehicle.

If your nonprofit's 501(c)(3) status is revoked or expires, you must notify the DMV within 30 days. You will need to return the exempt plate and register the vehicle under standard registration rules, which means paying the full registration fee. Similarly, if the nonprofit sells the vehicle or stops using it for nonprofit purposes, you must return the plate.

The IRS sends nonprofits a notice every three years asking them to confirm their 501(c)(3) status by filing Form 990-N (e-postcard), 990-EZ, or 990. If you miss this filing important date, your status is automatically revoked. Keep track of your IRS filing important date to avoid losing your exempt plate status.

When the DMV Might Deny Your Request

The most common reason for denial is that the vehicle title does not list the nonprofit as the registered owner. If an individual board member's name appears on the title instead, the DMV will deny the process. The nonprofit itself must own the vehicle. If this is your situation, you will need to transfer the title to the nonprofit, which requires a new title process and a transfer fee.

Another frequent issue is a lapsed or revoked 501(c)(3) status. If your nonprofit has not filed its required IRS tax return for two consecutive years, the IRS automatically revokes your status. You can restore it by filing the overdue returns and requesting reinstatement, but you cannot get an exempt plate until your status is current.

The DMV may also deny the process if the vehicle is used for purposes outside the nonprofit's mission — for example, if a staff member uses it for personal errands or if the nonprofit rents it out. The vehicle must be used exclusively for the nonprofit's charitable or educational work.

Frequently Asked Questions

Can I get an exempt plate for a vehicle that is financed or has a loan against it?

No. The lienholder (the bank or finance company) must release their claim on the vehicle before you can register it with an exempt plate. Most lenders will not consent because the exempt status affects the vehicle's resale value. You will need to pay off the loan first, then explore for the exempt plate.

What if my nonprofit's 501(c)(3) status expires while I have an exempt plate?

You must return the exempt plate to the DMV within 30 days and register the vehicle under standard registration rules. You will owe the full registration fee for the current year. To avoid this, keep your nonprofit's IRS filings current and watch for renewal notices from the IRS.

Can I transfer an exempt plate to a different vehicle?

No. Each exempt plate is tied to a specific vehicle. If you want to use a different vehicle, you will need to explore for a new exempt plate for that vehicle. You can keep the old plate on the original vehicle or return it to the DMV.

How long does it take to receive the exempt plate after approval?

The DMV typically mails the plate within one to two weeks after approval. Processing the process itself takes four to six weeks. If you need the plate urgently, submit your process in person at a DMV office rather than by mail.

Do I still need to pay for smog checks and vehicle inspections with an exempt plate?

Yes. The exempt plate removes only the registration fee. You must still pay for smog checks (if required in your county), vehicle inspections, and any other fees unrelated to registration. You also must maintain valid insurance on the vehicle.