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Minnesota car sales tax

Minnesota car sales tax calculator

Minnesota charges 6.875% state motor vehicle sales tax (mvst) on cars. Your trade-in lowers the tax. Work out the tax, your out-the-door price and your payment below.

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New or used

Credit

Scores 660 to 719. The rate fills in; change it if you have a quote.

Term

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Minnesota's rate.

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Estimated payment

$32,041/mo

72 months at 9.7% APR

Car price
$30,000
Sales tax
$1,718,750
Down and trade-in
−$5,000
Amount financed
$1,743,750
Total interest
$563,220
Total cost
$2,311,970

An estimate, not an offer of credit. Your rate depends on your credit and the lender.

On this page

Minnesota car sales tax at a glance

Minnesota
Taxmotor vehicle sales tax (MVST)
State rate6.875%
Counties and cities add taxNo
Trade-in lowers the taxYes, tax is on the price minus the trade
LeasesTax on all the payments, due at signing
Dealer doc fee cap$350

Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.

How to work out Minnesota sales tax on a car

Multiply the taxable price by the rate. In Minnesota the trade-in comes off first.

A $30,000 car with a $5,000 trade: $25,000 x 6.875% = $1,718.75 at the state rate.

6.875% MVST on the purchase price (paid at title transfer) instead of general sales tax, so local sales taxes do not apply to purchases (a separate small local excise may apply in some areas). Older low-value and collector vehicles pay flat in-lieu amounts.

Trade-ins

The trade-in value allowed by the seller is deducted from the total selling price (Minn. Stat. 297B.01, subd. 14).

Leasing a car in Minnesota

Tax on all the payments, due at signing. Minnesota: leases are taxed under the general sales tax, collected in full when the lease is signed, on the total amount the lessee will pay (agreed value less rebates, residual and trade-in, plus rent charge and taxable add-ons) (Minn. Stat. 297A.815); local sales taxes can apply to the lease. The lease calculator uses Minnesota's method when you pick the state.

Dealer doc fees

Minn. Stat. 168.27, subd. 31: lesser of $350 or 10% of the sale or lease value for sales/leases on or after July 1, 2025; no automatic index.

Common questions

What is the sales tax on a car in Minnesota?

The state rate is 6.875%. 6.875% MVST on the purchase price (paid at title transfer) instead of general sales tax, so local sales taxes do not apply to purchases (a separate small local excise may apply in some areas). Older low-value and collector vehicles pay flat in-lieu amounts.

Does a trade-in reduce sales tax in Minnesota?

Yes, tax is on the price minus the trade. The trade-in value allowed by the seller is deducted from the total selling price (Minn. Stat. 297B.01, subd. 14).

How is a car lease taxed in Minnesota?

Tax on all the payments, due at signing. Minnesota: leases are taxed under the general sales tax, collected in full when the lease is signed, on the total amount the lessee will pay (agreed value less rebates, residual and trade-in, plus rent charge and taxable add-ons) (Minn. Stat. 297A.815); local sales taxes can apply to the lease.

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