Minnesota Car Sales Tax Calculator
Minnesota charges a state vehicle sales/use tax of 6.88% on a car purchase. On a $20,000 vehicle that is about $1,375.00 in state tax before any local add-ons. Enter your own price below — and your trade-in, if Minnesota allows a trade-in credit — to estimate what you'll owe.
Quick answer: Minnesota’s state vehicle sales/use tax rate is 6.88%. Local (county/city) taxes may apply on top.
Estimate your Minnesota car sales tax
Enter the vehicle price. If Minnesota gives a trade-in tax credit, add your trade-in value to reduce the taxable amount.
State rate only. Many Minnesota counties and cities add a local sales tax on top, so your actual total may be higher. Trade-in credit rules vary — confirm eligibility with the official source below.
How Minnesota taxes a car purchase
| State vehicle sales/use tax rate | 6.88% |
| Taxable amount | Price − trade-in credit (where allowed) |
| Local / county tax | Varies by jurisdiction — added on top of the state rate |
Minnesota's title fee is $8.25 (plus a $12 filing fee) and passenger plates are $15.50. Minnesota Motor Vehicle Sales Tax is 6.875% (raised from 6.5% effective 2023-07-01). The annual license tab fee is value-based and depreciates with vehicle age; title and registration line items are collected by Driver and Vehicle Services through deputy registrars.
Sales tax on a used car in Minnesota
Minnesota applies the same 6.88% state sales/use tax to a used car as to a new one. On a private-party sale the tax is normally collected when you title and register the vehicle — calculated on the price you paid, minus a trade-in credit where the state allows one, and checked against the vehicle's fair-market value to deter under-reporting.
Dealer vs. private-party purchases in Minnesota
Minnesota dealers collect the 6.5% MVST at delivery and submit title paperwork through Driver and Vehicle Services. Private-party buyers must visit a deputy registrar within 10 days with the signed title, Form PS2000, proof of insurance, and ID; the deputy collects the 6.5% MVST and other fees at the same visit. Both paths apply the same flat MVST rate.
Source ↗What's different about Minnesota vehicle tax
Minnesota's 6.5% Motor Vehicle Sales Tax (MVST) is collected at title transfer by the deputy registrar (or by the dealer at delivery, who then remits it). MVST applies to both dealer and private-party purchases on the documented sale price, with limited family-transfer and gift exemptions. Vehicles purchased out of state by Minnesota residents owe Minnesota use tax at the same 6.5% rate at title transfer, with credit for sales tax paid to the other state up to the Minnesota rate.
Source ↗County & local taxes in Minnesota
Minnesota's Motor Vehicle Sales Tax is a flat 6.5% statewide — counties cannot raise or lower it. A few counties and the Metropolitan Transit Improvement area levy small local-option transportation taxes that can apply to dealer transactions, but the vehicle MVST itself is uniform. The bigger local cost variance is the MSRP-based license tab fee, which depends on the original sticker price of the specific vehicle rather than where the buyer lives.
Source ↗Worked example: buying a car in Minnesota
Logan buys a used 2020 Subaru Outback from a private seller in Hennepin County, Minnesota for $24,000. The Outback's original MSRP was $32,000.
| Vehicle price | $24,000.00 |
| State sales/use tax | $1,560.00 |
| Title fee | $10.00 |
| License tab fee (year-1 MSRP-based estimate) | $240.00 |
| Filing fee and technology surcharge (approximate) | $25.00 |
| Estimated total | $25,835.00 |
Logan pays the 6.5% MVST ($1,560) on the $24,000 sale price at a Hennepin County deputy registrar, plus the title fee and ancillary filing line items. His first-year license tab fee is calculated from the Outback's original $32,000 MSRP with a depreciation factor — in the mid-three-figures for a recent-model vehicle. Minnesota requires no emissions test. Confirm exact license tab amounts on the DVS fee page before paying.
What this estimate excludes
- Local and district taxes. County, city, and transit taxes are added on top of the Minnesota state rate.
- Title, registration, and plate fees. These are separate from sales tax — use the Minnesota registration and title-transfer calculators for those.
- Dealer documentation fees. A dealer “doc fee” is charged on top and is often itself taxable.
- Exemptions. Gifts, inheritance, and certain family transfers may be exempt — confirm with Minnesota Driver and Vehicle Services (DVS).
Official Minnesota sources
Related Minnesota tools & guides
Frequently asked questions
How much is sales tax on a car in Minnesota?
The Minnesota state vehicle sales/use tax rate is 6.88%. Multiply it by the taxable purchase price (usually the price minus any trade-in credit). Counties and cities may add a local sales tax on top, so confirm your combined rate with Minnesota Driver and Vehicle Services (DVS).
Do I pay sales tax when buying a used car from a private seller in Minnesota?
In most states, sales or use tax on a private-party vehicle purchase is collected when you title and register the car, not at the point of sale. The rate is generally the same as a dealer sale. Confirm the private-sale rules with Minnesota Driver and Vehicle Services (DVS).
Does Minnesota give a sales tax credit for a trade-in?
Most states tax only the difference between the vehicle price and your trade-in value, which lowers the tax you owe. A handful of states tax the full price with no trade-in credit. Verify Minnesota's treatment before you rely on the estimate above.
Are there local or county car sales taxes in Minnesota?
Often, yes. The rate shown here is the Minnesota state rate only; many counties, cities, and transit districts add a local sales tax on vehicle purchases, so your combined rate can be higher. Minnesota Driver and Vehicle Services (DVS) publishes the official combined rates.
Can you legally avoid sales tax on a used car in Minnesota?
The legitimate ways to lower or avoid vehicle sales/use tax in Minnesota are a qualifying trade-in credit (where the state allows one), a genuine gift or qualifying family transfer, or a specific exemption the state grants — not understating the sale price, which is illegal and easily caught by Minnesota Driver and Vehicle Services (DVS) against the vehicle's fair-market value. Confirm any exemption with Minnesota Driver and Vehicle Services (DVS) before relying on it.
Why is my Minnesota "license tab" fee so high on a new car?
Minnesota's annual passenger registration uses an MSRP-based license tab fee that depreciates each year on a state schedule. A vehicle with a $40,000 MSRP can owe several hundred dollars in license tabs the first year, dropping each year as the depreciation factor falls. Older or lower-MSRP vehicles eventually drop to a flat statutory minimum. This is in addition to the one-time 6.5% Motor Vehicle Sales Tax paid at title transfer.
Does Minnesota require an emissions test?
No. Minnesota has no statewide or regional vehicle emissions inspection program; vehicles registered anywhere in Minnesota are exempt from periodic emissions testing as a condition of registration. The Minnesota Pollution Control Agency monitors air quality but does not run a consumer inspection program.
What is a Minnesota deputy registrar?
A deputy registrar is a county-government office or private-contractor office authorized by Driver and Vehicle Services to process title, registration, and tab-renewal transactions on the state's behalf. Many transactions can be done online at DVS' site, but private-party first-time titling typically requires an in-person visit to a deputy registrar (or, in some areas, the state DVS office in St. Paul).
Last reviewed: 2026-01-01 · Reviewed by the Car Paperwork editorial team · Based on official Minnesota Driver and Vehicle Services (DVS) sources · Independent resource · Not legal advice