The Difference Between Commercial Plates and Regular Plates

The difference between commercial and regular plates is:

Commercial plates go on vehicles used for business purposes (e.g. limos, trucks, taxis) and certain vehicles that exceed a specific weight (depending on your state).

Regular plates are used on personal vehicles (e.g. motorhomes, cars, SUVs), as long as the particular vehicle isn’t for hire.

For example, the Massachusetts Department of Transportation’s motor vehicle regulations says that any vehicle with a weight over 6,000 lbs (except SUVs, passenger vans, cargo vans, or pickup trucks labeled as a camper or private passenger vehicle) should have commercial plates.

While the Arizona Department of Transportation requires you to register a vehicle (e.g. a car, a ¾ ton or less pickup truck and ¾ ton or less van) with commercial plates, only if it’s used for commercial reasons at least 1,000 hours in a vehicle registration year.

Different Amount and Order of Characters

Another important difference between commercial and regular plates is the amount and particular order of the letters and numbers used.

Commercial plates contain 5 numbers, 1 letter and 1 number (e.g. 11111a1).

Regular, non-commercial plates contain 1 number, 3 letters and 3 numbers (e.g. 1aaa111).

The Basics

The primary difference between vehicles that have commercial plates and those with regular ones is what they’re used for.

Thus, vehicles with commercial plates are used for business reasons, while vehicles with regular non-commercial plates are used for personal use.

However, the registration class isn’t related to how the vehicle is used in certain states like New York.

But the person who owns the vehicle should still register it in the correct registration class with the corresponding plates.

Regardless, there are several factors that define what a commercial vehicle is, including the weight ratings and how many passengers are transported for compensation.

To further explain about t the differences between commercial and regular plates, in this article I’ll cover the following topics:

The benefits of having commercial plates on your vehicle
The costs and fees related to getting commercial plates
Registration fees for regular non-commercial vehicles
The factors that determine the commercial status of a vehicle
How to change commercial plates with regular passenger plates
All the commercial vehicle weight classes and categories

The Benefits of Having Commercial Plates

Although being required to drive with commercial plates might sound like a lot of responsibility, it actually comes with several neat benefits such as:

1. Park in Designated Commercial Vehicle Parking Spots

Trying to find a suitable parking space can be rather a hassle, especially in a city.

However, with a commercial vehicle, you’ll be able to park in designated commercial vehicle parking spots that are prohibited for vehicles with regular plates.

This makes loading and unloading anything much easier as you’ll be able to park in a close and convenient, commercial vehicle-only spot.

2. Deduct the Associated Registration Fees

Registering your vehicle as a commercial vehicle with the specific plates makes you eligible for deducting the registration cost on your tax return.

This tax-related benefit even extends to leased commercial vehicles as you can deduct monthly payments on your leased commercial vehicle if it’s registered accordingly with the right plates.

3. Save Up to 10% Off Insurance Quotes

Apart from deducting certain taxes, driving with commercial creates cheaper insurance quotes.

Registering your vehicle as commercial means you usually get up to 10% less on insurance quotes compared to vehicles with regular passenger plates.

Commercial Vehicle Registration Cost and Fees

Although all of the plate and title fees along with the sales tax here definitely add up to the overall registration costs, driving a commercial vehicle still carries unique benefits that more than makes up for the extra expenses.

Note that the specific cost of the plates and other corresponding commercial vehicle registration fees can vary depending on your state.

For example, let’s take a look at what fees the New York State Department of Motor Vehicles (DMV) lists for first-time registration of commercial vehicles:

$25 for the commercial plates
$50 for the title certificate
Sales tax that varies depending on your locality and the purchase price of the vehicle

Continuing with this example, your vehicle use tax will be higher if you live within one of the five NY boroughs (Manhattan, Queens, The Bronx, Staten Island, and Brooklyn) compared to the counties outside of New York City.

Another practical example of some of the annual fees based on the gross weight of the vehicle as per Connecticut’s DMV commercial fee chart.

Gross Vehicle Weight | Annual Fee

<3,001 lbs – $47
3,001 to 4,000 – $56.40
4,001 to 5,000 – $68
5,001 to 6,000 – $79.60
6,001 to 7,000 – $91.20
7,001 to 8,000 – $102.80
8,001 to 9,000 – $114.40
9,001 to 10,000 – $126.00
10,001 to 11,000 – $137.60
11,001 to 12,000 – $149.20
12,001 to 13,000 – $160.80
13,001 to 14,000 – $172.40
14,001 to 15,000 – $184.00
15,001 to 16,000 – $195.60
16,001 to 17,000 – $207.20
17,001 to 18,000 – $218.80
18,001 to 19,000 – $230.40
19,001 to 20,000 – $242.00

Regular Non-Commercial Vehicle Registration Fees

The registration fees for a non-commercial vehicle with regular plates can vary greatly depending on which state it’s registered at.

Keep in mind that quite a few states require you to have proof of auto insurance coverage when you register a passenger vehicle such as a car.

And here’s a list of the specific fees in the various states for registering a passenger vehicle (a car in this case):

State | Registration Fee | Title Fee |License Plate Fee

Alabama | $15 to $23 plus $50 per year | $18 | $23 and $1.25 transfer
Alaska | $100 | $15 | $5 transfer
Arizona | $8 plus $32 (public safety fee) | $4 (for new vehicles) | $12 transfer
Arkansas | $17 to $30 | $10 | $1 transfer
California | $64 plus additional fees | $23 | $23
Colorado | depends on weight | $7.20 | $25
Connecticut | $120 for new registration or $80 to renew for 2 years | $25 | $5
Delaware | $40 | $35 | N/A
Florida | $14.50 to $32.50 ($225 for new vehicles) | $75.25 to $85.25 | $28 for new or $7.35 for transfer
Georgia | $20 | $18 | N/A
Hawaii | Depends on weight (minimum fee is $12) | $5 | $5
Idaho | $45 to $69 (depends on vehicle age) | $14 | N/A
Illinois | $151 | $150 | N/A
Indiana | $21.35 | $15 | $9.50
Iowa | up to %1 of vehicle list price plus $0.40 for every 100 lbs of vehicle weight | $25 for replacement | N/A
Kansas | $39 to $49 (depends on the county) | $10 | N/A
Kentucky | $21 | $6 | N/A
Louisiana | $20 to $82 (depends on vehicle value) | $68.50 | $3 transfer
Maine | $35 | $33 | N/A
Maryland | $135 to $187 (depends on weight) for 2 years | $100 | $10 transfer
Massachusetts | $60 for 2 years | $75 | $10 replacement or $25 for transfer
Michigan | Depends on vehicle value, weight and age | $15 | $5
Minnesota | $35 at a minimum (depends on vehicle age) | $15 | $5
Mississippi | $14 (first time reg) or $12.75 (renewal) | $9 | N/A
Missouri | $18.75 at a minimum (depends on the taxable horsepower of the vehicle) with an additional $6 to $12 processing fee | $8.50 | N/A
Montana | $30.57 to $225.24 (depends on vehicle age) with a 3% fee | $10.30 | $10.30
Nebraska | $15 plus $5.50 extra fees | $10 | $3.30 per plate
Nevada | $33 | $28.25 | $8
New Hampshire | $31.20 at a minimum plus $10 transfer fee and other local fees | $25 | $8 (plus $15 for new registrations)
New Jersey | $35.50 to $84 (depends on vehicle’s weight and age) | $60 to $85 | $6
New Mexico | $27 to $62 (depends on vehicle’s weight and age) | $5 (already included) | N/A
New York | $26 to $140 (depends on weight) for 2 years | $50 | $25
North Carolina | $38.75 | $56 | $21.50 to transfer
North Dakota | $49 to $274 (depends on vehicle’s weight and age) | $5 | $5 transfer
Ohio | $31 | $15 | $6 (transfer) or $13.25 (replacement)
Oklahoma | $96 for new regs | $11 (plus 17$ transfer fee) | N/A
Oregon | $122 to $152 (depends on vehicle age and MPG) | $98 to $113 (depends on vehicle age and MPG) | $24.50 (plus $6 to transfer)
Pennsylvania | $39 | $55 | N/A
Rhode Island | $30 if vehicle weight is 4,000 pounds maximum (the fee is higher for any weight over 4k lbs) plus $15 surcharge | $52.50 | $8
South Carolina | $40 | $15 | N/A
South Dakota | $36 to $144 (depends on weight) | $10 | $5 transfer
Tennessee | $26.50 | $95 | N/A
Texas | $51.75 plus local fees | $28 to $33 (depends on the county) | N/A
Utah | $44 for vehicles weighting up to 12,000 lbs or $69.50 for vehicles over 12,000 lbs (plus $19 for each 2,000 lbs over 14,000 lbs) | $6 | N/A
Vermont | $76 for 1 year | $6 | N/A
Virginia | $30.75 for vehicles below 4,000 lbs or $35.75 for vehicles above 4,000 lbs | $15 | N/A
Washington | $68.25 to $115.25 (depends on vehicle weight) | $15 | $10 (per plate)
Washington D.C. | $72 to $155 (depends on vehicle weight) | $26 | $12 to transfer
West Virginia | $51.50 | $15 | $10 (replacement)
Wisconsin | $85 | $164.50 | $4
Wyoming | $30 at the minimum (depends on the county) | $15 | N/A

The Factors that Define Commercial Vehicles

The official definition of a commercial vehicle courtesy of the Federal Motor Carrier Regulations, is any vehicle that moves independently or is towed on a highway in interstate commerce for passenger or property transport.

There are 4 additional specific details from the FMCM, which highlight that commercial vehicles are meant to:

1. Transport Up to 15 Passengers Plus the Driver

This applies to vehicles that are either designed or used to transport lots of passengers (up to 15 including the driver).

However, note that the vehicle shouldn’t be used to transport people for money.

2. Vehicle Weight or Weight Rating Exceeds 10k Lbs

The vehicle is also considered commercial if it has a GVWR (gross vehicle weight rating), GCWR (gross combination weight rating), GVW (gross vehicle weight), or GCW (gross combination weight) of more than 10,000 lbs, whichever is greater.

This can get confusing rather quickly but focus on the “whichever is greater” part.

If any of the abbreviations mentioned above exceeds 10,000 pounds, then your vehicle will be labeled a commercial vehicle.

For example, let’s say that you have a cargo van that somehow weighs 9,000 lbs, but a GVWR of 12,125 lbs.

In this case, your cargo van will fall into the commercial vehicle category, even if its own weight is below the 10k threshold.

3. Moving Hazardous Materials and Substances

If a particular vehicle is transporting hazardous things, you can bet that it’s labeled a commercial vehicle.

This includes transporting materials that the Secretary of Transportation deems hazardous, which are moved in a particular quantity that calls for placarding under specific safety regulations.

4. Transport More Than 8 Passengers Plus the Driver

This applies to vehicles that are designed or used for transporting over 8 people (including the driver) for money.

A common example of such commercial vehicles is shuttle vans that charge the passengers.

Commercial Vehicle Weight Classes and Categories

Commercial vehicles fall under 6 vehicle weight classes and 2 GVWR categories, according to the Federal Highway Administration:

1. Medium Duty Commercial Vehicles (10,001-26k lbs)

Class 3: 10,001 to 14,000 lbs
Class 4 : 14,001 to 16,000 lbs
Class 5: 16,001 to 19,500 lbs
Class 6: 19,501 to 26,000 lbs

2. Heavy Duty Commercial Vehicles (>26,001 lbs)

Class 7: 26,001 to 33,000 lbs
Class 8: >33,001 lbs

Note that smaller vehicles that are labeled as trucks, such as cargo vans, usually fall within the light duty category (classes 1 and 2).

This means that they can be registered as non-commercial vehicles, although this depends on the original construction of the vehicle or its modification if it is modified in any way.

How to Exchange Commercial for Regular Plates

You can exchange your commercial vehicle plates for regular non-commercial ones in a few easy steps:

Make sure that your vehicle is eligible for this procedure (i.e. you don’t use it to transport people for hire)
Submit the required documents (depending on the state you live in) and return your old commercial plates
Pay the corresponding fees and receive your regular non-commercial plates

To give you a practical example, these are the vehicle types eligible for commercial-to-regular plates exchange, according to the State of California DMV:

Station wagons
MPVs
Hearses
Vans that allow for human habitation (e.g. conversion vans)
Pickups that have a permanent camper or camper shell attached to the vehicle body

And here’s what vehicle types are not eligible:

Passenger vehicles that transport people for hire

Conclusion

The primary difference between vehicles that have commercial plates and those with regular ones is what they’re used for.

Thus, vehicles with commercial plates are used for business reasons, while vehicles with regular non-commercial plates are used for personal use.

There is another notable difference between commercial and non-commercial plates – how many numbers and letters are there and in what order.

However, the registration class isn’t related to how the vehicle is used in certain states like New York.

But the person who owns the vehicle should still register it in the correct registration class with the corresponding plates.

Regardless, there are several factors that define what a commercial vehicle is, including the weight ratings and how many passengers are transported for compensation.