Minnesota car sales tax and registration tax

Tabs priced on the sticker price, year by year

The registration tax of Minnesota Statutes 168.013 is $10 plus 1.575% of the manufacturer’s suggested retail price for any car first registered on or after November 16, 2020. The percentage of the MSRP used falls with the year of vehicle life: 100% the first year, then 95%, 90%, 80%, 70%, 60%, 50%, 40%, 25% and 10% in the tenth year. From the eleventh year on, the tax is a flat $10 plus $20. Because the price used is the MSRP, a good deal at the dealer does not lower your tabs, and options added separately are left out.

What changes when you buy used

The 6.875% motor vehicle sales tax applies to dealer and private sales alike, on the price minus any trade-in the seller allows; a car in its tenth year or older with a resale value under $3,000 pays a flat $10 instead. The plates and the registration tax already paid stay with the car, so a private buyer pays the tax, the title fees and a $10 transfer tax now, and the tabs at the next renewal. For a 2019 car bought from a private seller for $18,000, that is $1,273.50 at the counter.

EV surcharge and county wheelage

Electric cars add 0.5% of the MSRP by year of life, at least $150 for registration periods starting from January 1, 2026 to June 30, 2027 and $100 afterward; plug-in hybrids add 0.25%, at least $75 then $50. Fifty-five counties also collect a wheelage tax of $10 to $20 a year with the tabs, including Hennepin and Ramsey at $20; Dakota, Isanti and Mower move from $10 to $20 in 2027. Next door, Wisconsin charges a flat registration fee instead, and the vehicle property tax guide lists the states that tax value every year.

What sets Minnesota apart

• Minnesota taxes a vehicle purchase with a 6.875% motor vehicle sales tax, collected when the car is titled, whether it was bought in or outside the state (Minn. Stat. 297B.02).
• The trade-in allowance given by the seller is deducted from the price before the 6.875% is applied, and manufacturer rebates are excluded (Minn. Stat. 297B.01).
• A passenger car in its tenth year of life or older with a resale value under $3,000 pays a flat $10 tax instead of the 6.875% (Minn. Stat. 297B.025).
• The yearly registration tax is $10 plus 1.575% of the MSRP for cars first registered since November 16, 2020, applied to 100% of the price in year one, then 95%, 90%, 80%, 70%, 60%, 50%, 40%, 25% and 10% (Minn. Stat. 168.013).
• From the 11th year of life the registration tax is a flat $10 plus $20 (Minn. Stat. 168.013).
• Electric cars pay a surcharge of 0.5% of the MSRP by year of life, at least $150 for registration periods starting from January 1, 2026 to June 30, 2027, then at least $100; plug-in hybrids pay 0.25%, at least $75 then $50 (Minn. Stat. 168.013).
• Titling a car costs an $8.25 title fee, a $2.25 technology surcharge, a $3.50 public safety vehicle fee and a $12 filing fee (Minnesota DVS).
• When a used car changes hands, its plates and the registration tax already paid go with it to the new owner (Minnesota DVS).
• Fifty-five counties add a wheelage tax of $10 to $20 a year with the registration, including Hennepin and Ramsey at $20 (Minnesota DVS).
• Dealers may charge a documentary fee of at most $350, or 10% of the sale if less, since July 1, 2025 (Minn. Stat. 168.27).

What the Minnesota calculation cannot know

• The registration tax and the EV surcharge are computed on the manufacturer's suggested retail price; when the MSRP is not typed, the engine uses the price, which understates them for a discounted new car and for any used car.
• Some counties and cities add a $20 excise tax on vehicles sold by dealers in their area (Minn. Stat. 297A.993); no current official list was read, so it is not added.
• Whether the dealer documentary fee is part of the taxable purchase price is read from the statute ('total consideration'); no DVS or Revenue page saying so explicitly was read. The engine taxes it.
• The $10 transfer tax listed by DVS for title transfers is applied to used purchases only; it is not added for a new car titled for the first time.
• A $1 local office surcharge applies when a deputy registrar handles the transaction; the engine assumes no deputy registrar surcharge.
• The $10 in lieu tax for older cars requires a resale value under $3,000; the engine uses the price as the value.
• Pickups and SUVs registered as trucks pay a weight-based tax, not the passenger-car schedule used here.