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.

State record source checked · 2026-Q2 Official source

Vehicle sales tax: 6.875%; Minnesota levies a statewide motor vehicle sales tax of 6.875% on the purchase price, effective July 1, 2023 (was 6.5% before). It is a flat statewide rate with no local add-ons applied to the MV sales tax itself. A trade-in to a licensed dealer reduces the taxable purchase price, lowering the tax owed. Older lower-value vehicles (10+ years, price under $3,000) may qualify for a flat $10 in-lieu tax.; Sales tax: source checked · 2026-Q2 Official source
Annual registration fee: ~$150/yr; Minnesota's passenger registration tax is value/age-based, not a flat fee: $10 plus 1.575% of the manufacturer's suggested retail price (MSRP) for vehicles first registered on/after Nov 16, 2020 (1.54% before that), per Minn. Stat. 168.013 subd. 1a. The tax is then reduced by a depreciation schedule (100% of base in year 1 down to 10% by year 10, flat $20 in year 11+), with a statutory minimum. A typical mid-priced car renews for roughly $100-200/year; $150 is used as a representative figure. Renewal is annual. Separate per-renewal charges include an $8 filing fee, $2.25 technology surcharge, plate fees ($13.50-$15.50), and in some counties a wheelage tax.; Registration fee: source checked · 2026-Q2 Official source
Vehicle property tax: No vehicle property tax; Minnesota does not impose a separate annual ad valorem personal-property tax on vehicles; the value-based component is built into the registration tax (a portion of which is deductible as a personal property tax on federal returns), not assessed as a standalone property tax.; Vehicle property tax: source checked · 2026-Q2 Official source
State inspection: Not required; Minnesota requires no periodic safety or emissions inspection for passenger vehicles statewide or in any metro area; the Twin Cities emissions program ended in 1999 (annual inspections apply only to commercial vehicles).; Inspection rule: source checked · 2026-Q2 Official source
Title fee: ~$8; One-time fee at purchase. Amount may vary.
Example: $35,000 vehicle: Sales tax: $2,406; + $150/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 6.875%. On a $35,000 vehicle, that's roughly $2,406 due at the time of purchase — in addition to the dealer's price.

After the purchase, Minnesota charges an estimated $150 per year to register the vehicle. Minnesota's passenger registration tax is value/age-based, not a flat fee: $10 plus 1.575% of the manufacturer's suggested retail price (MSRP) for vehicles first registered on/after Nov 16, 2020 (1.54% before that), per Minn. Stat. 168.013 subd. 1a. The tax is then reduced by a depreciation schedule (100% of base in year 1 down to 10% by year 10, flat $20 in year 11+), with a statutory minimum. A typical mid-priced car renews for roughly $100-200/year; $150 is used as a representative figure. Renewal is annual. Separate per-renewal charges include an $8 filing fee, $2.25 technology surcharge, plate fees ($13.50-$15.50), and in some counties a wheelage tax.

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.

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Frequently asked questions

What is the car sales tax in Minnesota?

The vehicle sales tax rate in Minnesota is 6.875%. On a $35,000 vehicle that works out to roughly $2,406 at the time of purchase. Minnesota levies a statewide motor vehicle sales tax of 6.875% on the purchase price, effective July 1, 2023 (was 6.5% before). It is a flat statewide rate with no local add-ons applied to the MV sales tax itself. A trade-in to a licensed dealer reduces the taxable purchase price, lowering the tax owed. Older lower-value vehicles (10+ years, price under $3,000) may qualify for a flat $10 in-lieu tax.

How much is vehicle registration in Minnesota?

The estimated annual vehicle registration fee in Minnesota is around $150 per year. Minnesota's passenger registration tax is value/age-based, not a flat fee: $10 plus 1.575% of the manufacturer's suggested retail price (MSRP) for vehicles first registered on/after Nov 16, 2020 (1.54% before that), per Minn. Stat. 168.013 subd. 1a. The tax is then reduced by a depreciation schedule (100% of base in year 1 down to 10% by year 10, flat $20 in year 11+), with a statutory minimum. A typical mid-priced car renews for roughly $100-200/year; $150 is used as a representative figure. Renewal is annual. Separate per-renewal charges include an $8 filing fee, $2.25 technology surcharge, plate fees ($13.50-$15.50), and in some counties a wheelage tax.

Does Minnesota have a vehicle property tax?

No. Minnesota does not impose an annual personal property tax on vehicles. Minnesota does not impose a separate annual ad valorem personal-property tax on vehicles; the value-based component is built into the registration tax (a portion of which is deductible as a personal property tax on federal returns), not assessed as a standalone property tax.

Is a vehicle inspection required in Minnesota?

No. Minnesota does not require a state vehicle inspection. Minnesota requires no periodic safety or emissions inspection for passenger vehicles statewide or in any metro area; the Twin Cities emissions program ended in 1999 (annual inspections apply only to commercial vehicles).

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