Minnesota Car Sales Tax Calculator Tax, title & license fees (2026)
Statewide motor vehicle sales tax (MVST); local sales taxes do not apply · 6.875% state rate
Calculate Minnesota car tax & fees
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How much is car sales tax in Minnesota?
Minnesota charges a 6.875% motor vehicle sales tax (MVST) statewide. Local sales taxes don't apply to titled vehicles. The other major cost is the annual registration tax, which is based on the vehicle's original MSRP.
Subtract your motor vehicle trade-in from the price and multiply by 6.875%. Dealer documentary fees aren't part of the taxable amount.
The registration tax is $10 plus 1.575% of the MSRP, multiplied by a year-of-life percentage: 100% in year one, then 95%, 90%, 80%, 70%, 60%, 50%, 40%, 25% and 10% in year ten. From year eleven it's a flat $20.
Battery-electric vehicles pay a surcharge of $150 or 0.5% of MSRP times the same year percentage, whichever is greater. Plug-in hybrids pay $75 or 0.25%. For registration periods starting July 1, 2027, those minimums drop to $100 and $50. Title, filing and plate fees come as a $51.50 package.
- Taxable = price - motor vehicle trade-in (doc fee not taxable)
- MVST = taxable x 6.875%
- Registration tax from MSRP and year of life
- Total = MVST + title package + lien + deputy fee + registration tax + EV surcharge + wheelage + local excise + doc fee
Minnesota car tax example with real numbers
New car with a trade-in
You buy a new car for $30,000 (MSRP $32,000) and trade in your old one for $8,000.
- Taxable amount: $30,000 − $8,000 = $22,000.
- MVST: $22,000 × 6.875% = $1,512.50.
- First-year registration tax: $10 + 1.575% × $32,000 = $514.
- With the $51.50 title package, the estimated total is $2,078, plus any county wheelage tax.
| Taxes | |
|---|---|
| Motor vehicle sales tax6.875% of $22,000.00 | $1,512.50 |
| Title & registration | |
| Title & filing package | $51.50 |
| Registration tax | $514 |
| Estimated total | $2,078 |
Computed with the calculator on this page using the figures in our data. Local add-ons not mentioned in the example are left out.
Exceptions that change your Minnesota tax bill
Family gifts
Gifts between spouses, parents and children, or grandparents and grandchildren owe no MVST.
Inheritance and divorce
Vehicles passed by inheritance, bequest or transfer-on-death, and transfers to a spouse in a divorce, owe no MVST.
New residents
A vehicle titled in another state for more than 60 days before you moved owes no MVST.
Older, low-value vehicles
A passenger vehicle 10 or more model years old, priced under $3,000 and worth under $3,000 on average, pays a flat $10 in-lieu tax.
Disabled veterans
Qualifying disabled veterans owe no MVST with proof.
Minnesota vehicle sales tax rates
| State rate | 6.875% |
|---|---|
| Local rate | 0% |
Minnesota title & registration fees
| Title package | $51.50 |
|---|---|
| Title package parts |
|
| Lien | $2 |
| Deputy registrar | $1 |
| Registration tax |
|
| Battery EV surcharge | Greater of the minimum or 0.5% x MSRP x year-of-life % (10% from year 11). Minimum $150 for periods starting 2026-01-01 to 2027-06-30; $100 from 2027-07-01 |
| Plug-in hybrid surcharge | Greater of the minimum or 0.25% x MSRP x year-of-life % (10% from year 11). Minimum $75 for periods starting 2026-01-01 to 2027-06-30; $50 from 2027-07-01 |
| County wheelage and local excise | Vary by county |
| Dealer doc fee cap | Lesser of $350 or 10% of price |
| Technology surcharge | $2.25 |
Minnesota car tax exemptions & special cases
| Family gift (spouse, parent-child, grandparent-grandchild) | Tax $0 |
|---|---|
| Inheritance / bequest / TOD | Tax $0 |
| Divorce transfer to spouse | Tax $0 |
| New resident, titled out of state over 60 days | Tax $0 |
| Qualifying disabled veteran | Tax $0 with proof |
| Tax paid to reciprocal state | Credit against MVST |
| Nominal ($1) non-family gift | Taxable |
| Older low-value passenger vehicle (10+ model years, price under $3,000, average value under $3,000) | $10 in-lieu tax instead of 6.875% MVST |
Minnesota car tax FAQ
Is Minnesota car sales tax 6.5%?
No. Vehicles pay the 6.875% motor vehicle sales tax.
Why does Minnesota registration cost so much on a new car?
The registration tax is based on the original MSRP and is highest in the first year of the vehicle's life.
Do local sales taxes apply to cars in Minnesota?
No, but some counties charge a wheelage tax or local vehicle excise.
How much is the EV surcharge in Minnesota?
The greater of $150 or 0.5% of MSRP times the year-of-life percentage, for periods starting by June 30, 2027.
Sources & verification
We checked these figures against the following official pages on October 7, 2026:
- www.revisor.mn.gov/statutes/cite/168.013
- dps.mn.gov/divisions/dvs/vehicle/vehicle-fees/vehicle-sales-tax
- assets.dps.mn.gov/files/dvs/dvs-vehicle-tax-manual-2026.pdf
Not yet confirmed on an official page: title package 51.50 breakdown; lien 2; deputy 1. Treat these figures as estimates.
What changed in our last review
- EV/PHEV surcharge in year 11+ uses 10% factor (calculator used 0, i.e. minimum only)
- EV/PHEV minimums drop to $100/$50 for periods beginning on/after 2027-07-01
- $10 in-lieu sales tax for passenger vehicles 10+ model years old, price < $3,000 and average value < $3,000
Spotted something out of date? Tell us and we'll recheck it.