Minnesota Car Sales Tax Calculator

By Mohamed SkhiriUpdated November 7, 2026

MN used car sales tax: 6.875%

Minnesota Statutes § 297B.02 imposes a 6.875% excise tax on the purchase price of any motor vehicle bought or acquired, in Minnesota or elsewhere, that must be registered in the state. The rate went up from 6.5% under a 2023 law. It's called the motor vehicle sales tax, but it replaces the regular sales tax on vehicles, so the general state and local sales tax rates don't apply to the car itself. Dealer sales and private sales are taxed the same way. In a private sale, you pay when you transfer the title.

What the purchase price includes

The taxable "purchase price" is the total consideration for the sale, whether paid in money or otherwise, with three key adjustments from § 297B.01:

• Trade-ins come off. The trade-in value the seller allows is deducted, and that allowance becomes the purchase price of the car you traded in.
• Manufacturer rebates come off. A rebate paid or payable to you is excluded.
• Accessibility modifications are excluded. The part of the vehicle's value due only to modifications for a person with a disability isn't taxed.

The $10 rule for older cars

Instead of 6.875%, a passenger automobile pays a flat $10 if it's in its tenth or later year of vehicle life and its resale value is under $3,000, measured with the national resale guides the registrar designates. Both conditions apply. A 12-year-old car still worth $4,000 pays the full rate, $275 on a $4,000 price.

Collector vehicles registered under the classic, pioneer, street rod or collector plates in § 168.10 pay a flat $150. If the vehicle is moved to a regular registration class within a year, the full tax applies.

Gifts and family transfers

A gift between spouses, between parent and child, or between foster parent and foster child isn't taxed. Neither is a guardian's transfer to a ward when the car was titled to the guardian only because the ward was a minor. Other gifts, or transfers for a nominal amount, are taxed on the average value of similar vehicles from the registrar's guides, not the amount paid.

The county $20 excise tax

Under § 297A.993, a county may adopt a $20 excise tax on motor vehicles bought from a retail motor vehicle seller in the county, often alongside a local transportation sales tax. It's added on top of the 6.875% and is the only special local vehicle excise tax Minnesota allows. Tick the box if your county has adopted it.

Worked examples

Don't forget registration tax

The sales tax is a one-time charge. Minnesota also charges a yearly registration tax based on the car's MSRP and age, starting at $10 plus 1.575% of MSRP for a new car. Use our MN vehicle registration fee calculator to add it to your budget.

Frequently asked questions