Car ownership costs in Minnesota
What it costs to own a car in Minnesota beyond the sticker price — sales tax, annual registration, vehicle property tax, inspection requirements, and title fee.
Estimated — not yet source-verified.Estimated — not yet source-verified. This figure is a knowledge estimate we have not yet confirmed against the official source, so this page is not indexed. Treat it as a rough guide only and verify with your state DMV or department of revenue.
- Vehicle sales tax
- 0.065%
- Minnesota state sales tax on vehicles is 6.5%. Local taxes may add more. Trade-in credit reduces taxable amount.
- Annual registration fee
- ~$35/yr
- Annual registration includes a base fee plus a registration tax based on original MSRP and vehicle age (1.25% year 1, declining over time).
- Vehicle property tax
- No vehicle property tax
- No separate property tax; Minnesota's annual registration tax is value-based and functions similarly.
- State inspection
- Not required
- Minnesota does not require periodic vehicle inspections.
- Title fee
- ~$7
- One-time fee at purchase. Amount may vary.
- Example: $35,000 vehicle
- Sales tax: $23
- + $35/yr registration + no property tax
How state fees affect your car's true cost in Minnesota
When you buy a vehicle in Minnesota, the first state cost you'll face is the sales tax of 0.065%. On a $35,000 vehicle, that's roughly $23 due at the time of purchase — in addition to the dealer's price.
After the purchase, Minnesota charges an estimated $35 per year to register the vehicle. Annual registration includes a base fee plus a registration tax based on original MSRP and vehicle age (1.25% year 1, declining over time).
Minnesota does not impose a personal property tax on vehicles — which is a meaningful advantage over states that do, where owners can pay 0.5%–2% of the vehicle's value annually.
Minnesota does not require a state vehicle inspection, saving the time and cost of periodic safety or emissions testing.
Calculate your full 5-year ownership cost in Minnesota
The TCO calculator pre-fills Minnesota's sales tax and registration fee. Add your purchase price, loan terms, fuel type, and insurance to see the complete picture.
Open TCO calculatorFrequently asked questions
What is the car sales tax in Minnesota?
The vehicle sales tax rate in Minnesota is 0.065%. On a $35,000 vehicle that works out to roughly $23 at the time of purchase. Minnesota state sales tax on vehicles is 6.5%. Local taxes may add more. Trade-in credit reduces taxable amount.
How much is vehicle registration in Minnesota?
The estimated annual vehicle registration fee in Minnesota is around $35 per year. Annual registration includes a base fee plus a registration tax based on original MSRP and vehicle age (1.25% year 1, declining over time).
Does Minnesota have a vehicle property tax?
No. Minnesota does not impose an annual personal property tax on vehicles. No separate property tax; Minnesota's annual registration tax is value-based and functions similarly.
Is a vehicle inspection required in Minnesota?
No. Minnesota does not require a state vehicle inspection. Minnesota does not require periodic vehicle inspections.
Other states
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