On this page
Minnesota car sales tax at a glance
| Minnesota | |
|---|---|
| Tax | motor vehicle sales tax (MVST) |
| State rate | 6.875% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax 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.