Minnesota motor vehicle sales tax
Minnesota law imposes an excise tax of 6.875% on the purchase price of any motor vehicle that must be registered in the state, whether it was bought in Minnesota or elsewhere.[1] The rate was 6.5% before July 1, 2023. It is paid to the state when you title the vehicle.
| Case | Tax | Share of price |
|---|---|---|
| $33,000 car, $9,000 trade, $1,500 rebate | $1,546.88 | 4.69% |
| $33,000 car, no trade | $2,268.75 | 6.88% |
| $14,000 used car, private sale | $962.50 | 6.88% |
| $55,000 truck, $20,000 trade | $2,406.25 | 4.38% |
What counts as the purchase price
- Trade-in: the credit or trade-in value the seller allows is deducted from the total selling price.[1]
- Rebates: the purchase price excludes a manufacturer's rebate paid or payable to the buyer.[1]
- Older and collector cars: some older passenger automobiles pay a flat $10 tax instead, and qualifying collector vehicles $150.[1]
Bought outside Minnesota?The tax applies to vehicles purchased in or outside Minnesota that must be registered here, so expect to pay it when you title the car.
Compare states on the car sales tax calculator, include the tax in a budget with the car affordability calculator, or see the yearly total on the cost of owning a car calculator.
Frequently asked questions
What is the sales tax on a car in Minnesota?
6.875% of the purchase price after the trade-in and any manufacturer rebate.
Does Minnesota deduct a trade-in from car sales tax?
Yes. The trade-in credit is subtracted from the selling price.
When did Minnesota raise its car sales tax?
The rate went from 6.5% to 6.875% on July 1, 2023.