Minnesota Vehicle Tax Overview
Minnesota applies a flat-rate sales tax on vehicle purchases, with additional fees varying by county and vehicle type. The state also has specific requirements for registration and emissions.
Sales Tax Structure
- State Rate: 6.5% flat rate
- Trade-In Credit: Full value deducted
- Private Sales: Same 6.5% rate
- Minimum Tax: $10
Registration Fees (2024)
- Base Fee: Based on value and age
- Title Fee: $8.25
- Plate Fee: $6
- Filing Fee: $10
- Technology Fee: $2.25
Vehicle Registration Tax
- New Vehicles: 1.25% of base value
- Years 1-10: Depreciation schedule applies
- 10+ Years: Flat $35 fee
- Minimum Tax: $35
Regional Considerations
- Twin Cities Metro:
- Additional 0.25% transit tax
- Higher registration fees
- Special parking regulations
- Greater Minnesota:
- Different fee structure
- Rural vehicle considerations
Tax Exemptions
- Gifts between family members
- Inherited vehicles
- Disabled veterans (specific conditions)
- Certain nonprofit organizations
- Out-of-state military personnel
Registration Requirements
- New Residents: 60 days to register
- Insurance: Mandatory liability coverage
- Documentation:
- Valid Minnesota driver's license
- Proof of insurance
- Vehicle title
- Payment for fees
Special Vehicle Categories
- Electric Vehicles: Additional $75 annual fee
- Collector Vehicles: Special plates available
- Commercial Vehicles: Weight-based fees
- Farm Vehicles: Special registration options
Money-Saving Tips
- Use trade-in credit
- Consider vehicle age for registration fees
- Check for veteran benefits
- Research collector vehicle options
- Plan registration timing
Common Questions
- Q: How is vehicle value determined?
A: Based on MSRP and depreciation schedule
- Q: Can I transfer plates?
A: Yes, with applicable fees
- Q: Are there emissions tests?
A: Not required in Minnesota