Minnesota Car Sales Tax Calculator (2026)

• Minnesota's 6.875% Motor Vehicle Sales Tax is paid when the title transfers, and local sales taxes do not apply to vehicles.
• Trade-in allowances and fixed-value rebates reduce the taxable price, and document fees are not taxed.

Motor Vehicle Sales Tax

6.875%In effect since Jul 1, 2023

Local tax

None on vehicles

Trade-in

Full credit: reduces the taxable price

Manufacturer rebate

Not taxed: the rebate lowers the taxable price

Figured with Minnesota's rules for a buyer from a dealer.

• Used car, no trade-in$1,238

  $18,000 price. Taxed on $18,000.

• New car with a trade-in$1,719

  $35,000 price, $10,000 trade-in. Taxed on $25,000. The trade-in saves $688.

• New car with a trade-in and a rebate$1,925

  $45,000 price, $15,000 trade-in, $2,000 rebate. Taxed on $28,000. The trade-in saves $1,031. The rebate saves $138.

These examples treat the agreed price as the taxable price. Where a state uses a book value instead, the tax can differ.

Minnesota has no local tax on vehicles, so buyers in Minneapolis, St. Paul and Rochester and everywhere else in Minnesota are figured at the same state rate: $2,063 on a new $30,000 car. Whether the tax applies to your purchase still depends on the rules above.

The calculator covers a car bought from a dealer. These rules apply to other ways of buying or bringing a car to Minnesota.

Buying from a private seller

Minnesota's 6.875% Motor Vehicle Sales Tax applies to sales by private individuals as well as dealers, and is figured on the sale price minus any trade-in allowance and rebates. When a car is transferred for a small or nominal price, the tax is figured on the average value of similar vehicles instead. (revenue.state.mn.us, checked Nov 10, 2026)

A car received as a gift

Gifts of a car between spouses, between a parent and child, and between a grandparent and grandchild owe no Motor Vehicle Sales Tax. Other gifts are taxed at 6.875% of the car's value at the time of the gift. (revenue.state.mn.us, checked Nov 10, 2026)

Moving to Minnesota with your car

A new resident owes no Motor Vehicle Sales Tax on a car bought more than 60 days before they began living in Minnesota, if it was registered in their name in the other state or country. (revisor.mn.gov, checked Nov 10, 2026)

Buying outside Minnesota

A Minnesota resident who paid sales tax to another state gets a credit for it against the Motor Vehicle Sales Tax. If the other state's rate is lower, the difference is due to Minnesota. (revenue.state.mn.us, checked Nov 10, 2026)

Active-duty military

The Department of Revenue lists no general Motor Vehicle Sales Tax exemption for active-duty members. Since July 1, 2024, a veteran with a total service-connected disability is exempt from the tax when buying a car. (revenue.state.mn.us, checked Nov 10, 2026)

Deadline to pay

The buyer has 20 calendar days after the title is assigned to them to apply for a new title, and the Motor Vehicle Sales Tax is paid when the title transfers. (revisor.mn.gov, checked Nov 10, 2026)

Paying late

A $2 late transfer penalty is due if the title transfer is not submitted within 20 calendar days of the sale date. If the plates are suspended because the title was not filed within 30 days, a $10 fee is due before the registration is reinstated. (dps.mn.gov, checked Nov 10, 2026)

Minnesota ranks 43rd lowest of all 50 states and the District of Columbia for tax on a $30,000 car. See all states.

Tax on a $30,000 car before trade-in, in nearby states. You generally pay tax based on where you register the car.

• South Dakota$1,200
• Iowa$1,500
• North Dakota$1,500
• Wisconsin$1,500 – $2,370
• Minnesota$2,063

• All car calculators
• Sales tax calculators by state
• Car sales tax by state
• Trade-in tax credit by state
• Car cost by state
• Minnesota out-the-door price
• Auto loan calculator

• Iowa car sales tax
• North Dakota car sales tax
• South Dakota car sales tax
• Wisconsin car sales tax