Real Minnesota deals, worked out
Each example runs through the same calculator above, line by line, so you can check every number yourself.
1Minneapolis: new car with a trade-in and rebate
A buyer pays $36,000, gets a $1,500 rebate and trades in $10,000. Tax is on $24,500, and first-year registration tax is on the MSRP.
| Vehicle price | $36,000.00 |
| Rebate | −$1,500.00 |
| Motor vehicle sales tax (6.875%) on $24,500.00 | $1,684.38 |
| Filing fee | $12.00 |
| Title fee | $8.25 |
| Technology surcharge | $2.25 |
| Local office surcharge | $1.00 |
| Registration tax | $577.00 |
| Out-the-door | $36,784.88 |
| Due after the $10,000 trade-in | $26,784.88 |
2New electric car
A buyer pays $43,000 for an electric car. The EV surcharge is at least $150 a year on top of the registration tax.
| Vehicle price | $43,000.00 |
| Motor vehicle sales tax (6.875%) on $43,000.00 | $2,956.25 |
| Filing fee | $12.00 |
| Title fee | $8.25 |
| Technology surcharge | $2.25 |
| Local office surcharge | $1.00 |
| Registration tax | $687.25 |
| Surcharge (electric vehicle) | $150.00 |
| Out-the-door | $46,817.00 |
What the tax is on
The Department of Revenue's rule is simple: subtract any rebates and the trade-in allowance from the sales price, then apply 6.875%. That makes Minnesota one of the states where a manufacturer rebate saves you tax.
Minnesota car tax at common prices
What a new gas car bought from a dealer comes to at four prices. The trade-in column shows how much a $10,000 trade-in changes the tax under Minnesota's rules.
| Price | Tax | Tax with $10,000 trade-in | Taxes + fees |
|---|---|---|---|
| $15,000 | $1,031.25 | $343.75 | $1,301.00 |
| $25,000 | $1,718.75 | $1,031.25 | $2,146.00 |
| $35,000 | $2,406.25 | $1,718.75 | $2,991.00 |
| $50,000 | $3,437.50 | $2,750.00 | $4,258.50 |
Title, filing and registration
Each title transaction carries a $12 filing fee, an $8.25 title fee, a $2.25 technology surcharge and a $1 local office surcharge. The registration tax for a passenger car first registered after November 16, 2020 is $10 plus 1.575% of the MSRP, and it falls in later years. The electric vehicle surcharge is $150, or more based on age and MSRP, and plug-in hybrids pay $75.
Minnesota taxes and fees at a glance
Officialfrom a state agency sourceEst.varies or not yet confirmed
| Item (minneapolis: new car with a trade-in and rebate) | Status | Amount |
|---|---|---|
| Motor vehicle sales tax (6.875%) | Official | $1,684.38 |
| Filing fee | Official | $12.00 |
| Title fee | Official | $8.25 |
| Technology surcharge | Official | $2.25 |
| Local office surcharge | Official | $1.00 |
| Registration tax (yearly) | Official | $577.00 |
| Total taxes and fees | $2,284.88 |
Minnesota car tax FAQ
What is the car sales tax in Minnesota?
6.875% motor vehicle sales tax on the price after rebates and your trade-in.
Do rebates lower Minnesota car sales tax?
Yes. Rebates and the trade-in allowance both come off the price first.
How is Minnesota registration tax figured?
$10 plus 1.575% of the MSRP in the first year, falling after that.
Sources
We build every number from these agency pages. If something has changed, tell us and we'll fix it.