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Minnesota · What a car really costs

Buying a car in Minnesota.

Minnesota charges motor vehicle sales tax (mvst) of 6.875% statewide on vehicles, with no local add-on. A trade-in does reduce the taxable price, which is real money on the deal.

6.875%
Motor vehicle sales tax (MVST) on a vehicle
Full credit
Trade-in reduces the taxable price
$8.25
Title fee
$640
Registration, typical new car
$350
Doc fee, capped by law

How the tax works.

MVST is 6.875% (up from 6.5% on July 1, 2023) and applies statewide with no local sales tax on vehicles.

Manufacturer rebates: DVS treats rebates that are applied at the time of sale as reducing the purchase price only when the dealer is not reimbursed; this run did not confirm the current DVS position, so rebates are not listed as a deduction. Verify before relying on it.

Leases of 120 days or more: MVST is paid up front on the total lease price (all scheduled payments plus down payment).

Trade-ins: Value of a motor vehicle taken in trade is deducted from the purchase price (Minn. Stat. 297B.01).

At the DMV.

FeeAmount
Title$8.25
Registration (value-based)~$640
Plates$15.50
Filing fee (title/new registration transaction)$12.00
Technology surcharge (each transaction)$2.25
Public Safety Vehicle fee (each transaction)$3.50
Local office surcharge (each transaction)$1.00
Passenger class registration tax = $10 + 1.575% of the manufacturer's suggested retail price (100% of MSRP in year 1, declining 10% per year to 10% in year 10, then $20 flat) per Minn. Stat. 168.013 subd. 1a. A $40,000 MSRP car: $10 + $630 = $640, plus plates $15.50 and filing/technology fees. Wheelage tax up to $20 in participating counties.
Annual value-based tax: {"name":"Value-based registration tax","rate":"$10 + 1.575% of MSRP, depreciating 10%/year","notes":"The registration tax itself is the value-based charge."}

Leasing in Minnesota.

upfront on total

Cities in Minnesota.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

MinneapolisHennepin CountySaint PaulRamsey CountyDuluthSt. Louis CountyMaple PlainHennepin CountySaint CloudStearns CountyYoung AmericaCarver CountyLorettoHennepin CountyRochesterOlmsted CountyMoorheadClay CountyEden PrairieHennepin County
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Questions.

How much is sales tax on a car in Minnesota?

6.875%. Minnesota applies one rate statewide on vehicles, so it does not change from city to city.

Does a trade-in lower the sales tax in Minnesota?

Value of a motor vehicle taken in trade is deducted from the purchase price (Minn. Stat. 297B.01).

What are title and registration fees in Minnesota?

Title is $8.25. Passenger class registration tax = $10 + 1.575% of the manufacturer's suggested retail price (100% of MSRP in year 1, declining 10% per year to 10% in year 10, then $20 flat) per Minn. Stat. 168.013 subd. 1a. A $40,000 MSRP car: $10 + $630 = $640, plus plates $15.50 and filing/technology fees. Wheelage tax up to $20 in participating counties.

Is the doc fee capped in Minnesota?

Yes, at $350. Minn. Stat. 168.27 subd. 31: lesser of $350 or 10% of the sale for sales/leases on or after July 1, 2025 ($275 from July 2024, $200 from July 2023).

How is a lease taxed in Minnesota?

upfront on total

Where these numbers come from.

Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.