Minnesota Tax, Title and License Calculator (MN)

Minnesota charges a 6.875% motor vehicle sales tax on a car, the same everywhere in the state. Each year you also pay a registration tax of $10 plus 1.575% of the car’s original MSRP, reduced as it ages. Title and filing fees add about $22.50, and new plates are $15.50.

Use this tax, title and license calculator for MN online to estimate the cost of a new or used car, from a dealer or a private seller. The guide below shows each part of the math.

Checked against Minnesota Driver and Vehicle Services, the Minnesota Department of Revenue and Minn. Stat. 168.013 on October 13, 2026. This is an independent estimate. DVS and your deputy registrar set the final amount.

Minnesota Car Tax and Fees at a Glance

Minnesota Motor Vehicle Sales Tax

Sales tax = (price − trade-in − rebates) × 6.875%

The rate has been 6.875% since July 1, 2023, when it rose from 6.5%. There’s no city or county sales tax on vehicles. Instead, some cities and counties charge a flat $20 local vehicle excise tax, collected by the dealer. Neighboring South Dakota uses a flat 4% excise tax.

Does a trade-in lower the tax?

Yes. When you trade a motor vehicle to a dealer for another motor vehicle, you’re taxed on the price after the trade-in. Trading in a boat, ATV or snowmobile doesn’t count.

Are rebates taxed in Minnesota?

No. Manufacturer and third-party rebates with a fixed value at purchase lower the taxable price. That’s true whether the rebate is on the purchase agreement, used as a down payment or paid to you. A federal EV credit taken at the dealer counts as a rebate too.

Are dealer fees taxed?

Dealer prep, transportation and accessories are taxed. Extended warranties and registration, license and document fees aren’t.

• What is the $10 in-lieu tax?

A passenger car that’s 10 or more model years old, bought for under $3,000, with an average value under $3,000, pays a flat $10 instead of the 6.875% tax.

How Much Is Car Sales Tax in Minnesota?

Example 1: New car from a dealer

Assumptions: $40,000 price, $2,000 rebate, $12,000 trade-in, MSRP $41,000, financed, new plates.

Add $20 if your city or county charges the local excise tax. DVS may round the registration tax to the nearest dollar.

Example 2: Private sales

You buy a used car from a neighbor for $8,000. Tax is $8,000 × 6.875% = $550, paid at the deputy registrar when you transfer the title. If you instead buy a 12-year-old car for $2,500 with an average value under $3,000, you pay the $10 in-lieu tax.

Minnesota Registration Tax

Registration tax = $10 + (MSRP × 1.575% × depreciation %)

Minnesota’s yearly registration tax is based on the car’s MSRP, not its price. Destination charges and add-on accessories aren’t counted for cars first registered on or after November 16, 2020. From year 11 on, it’s a flat $30.

Some counties add a wheelage tax at renewal. Iowa’s registration fee is also based on list price, while Kansas collects county property tax instead.

Minnesota Title, Plate and Other Fees

Minnesota EV and Plug-In Hybrid Surcharges

EVs and plug-in hybrids pay a yearly surcharge on top of the registration tax:

• Electric: the greater of $150 or 0.5% of MSRP × the depreciation share. A new $45,000 EV pays $225.
• Plug-in hybrid: the greater of $75 or 0.25% of MSRP × the depreciation share. A new $40,000 plug-in pays $100.

Those minimums apply to registration periods through June 30, 2027. After that, the minimums drop to $100 and $50.

Private Sales, Gifts and Family Transfers

Private sales are taxed at 6.875%. You pay at the deputy registrar or DVS when the title transfers. If a car changes hands for a very low price, the tax is based on the average value of similar cars.

Gifts between spouses, parents and children, and grandparents and grandchildren are exempt, with no affidavit needed. Inheritance, divorce transfers and joint-to-single ownership are exempt too. A gift to anyone else is taxed on the car’s fair market value.

Buying Out of State or Moving to Minnesota

If you bought the car and titled it in your name in another state at least 60 days before registering it in Minnesota, no Minnesota sales tax is due. Otherwise you owe Minnesota tax, with credit for sales tax paid to the other state. If that state’s rate was lower, you pay the difference.

See also: Utah: a 4.85% state rate, local tax and an age-based yearly fee.

See also: Idaho: one 6% rate and registration based on vehicle age.

How to Use an MN Tax, Title and License Calculator by Hand

• Take the price and subtract your trade-in and any rebate.
• Multiply by 6.875%, or use $10 if the in-lieu rule fits.
• Add $20 if your area charges the local excise.
• Add the registration tax: $10 + 1.575% of MSRP × the depreciation share.
• Add $22.50 for the title, filing fee and technology surcharge.
• Add $15.50 for plates and $2 for a lien.
• Add the EV or plug-in hybrid surcharge if it applies.

What This Estimate Includes

• 6.875% sales tax or the $10 in-lieu tax
• Trade-in and rebate credits
• Registration tax by MSRP and age
• Title, filing, technology, plate and lien fees
• EV and plug-in hybrid surcharges

What This Estimate Does Not Include

• $20 local vehicle excise tax
• County wheelage tax
• Deputy registrar local office surcharge
• Personalized plates, insurance and loan costs

Common Mistakes to Avoid

• Adding a city sales tax. Vehicles pay 6.875% statewide, plus at most a $20 local excise.
• Using the price for the registration tax. It’s based on MSRP.
• Forgetting rebates lower the tax. Minnesota subtracts them.
• Paying 6.875% on an old cheap car. Check the $10 in-lieu rule.
• Missing the 20-day transfer window. A late transfer adds a penalty.

Frequently Asked Questions

• What is the sales tax on a car in Minnesota?

It’s 6.875% statewide. Some cities and counties add a flat $20 local excise tax.

How do I use a tax title and license calculator in MN?

Enter the price, trade-in, rebate and MSRP. The calculator applies 6.875% tax, the registration tax for the car’s age and the DVS fees.

• How is the Minnesota registration tax calculated?

It’s $10 plus 1.575% of the MSRP, reduced each year: 100%, 95%, 90%, 80% and so on down to 10% in year 10. From year 11, it’s $30.

Is a car from my parents taxed in Minnesota?

No. Gifts between parents and children, spouses, and grandparents and grandchildren are exempt.

• How much is the Minnesota EV fee?

At least $150 a year for an EV and $75 for a plug-in hybrid, or more on higher-priced newer cars.

Official Sources

• Minnesota DVS: Vehicle Fees
• Minnesota DVS: Vehicle Sales Tax
• Minnesota Department of Revenue: Motor Vehicle Guide
• Minn. Stat. 168.013: Vehicle registration taxes

This page is an independent estimate tool and guide. It isn’t affiliated with Minnesota DVS or the Department of Revenue. Rates and fees can change, so confirm your amount with your deputy registrar.