Out-the-door price in Minnesota

How Minnesota works

• Minnesota charges 6.875% Motor Vehicle Sales Tax, flat statewide. The Twin Cities metro transportation and housing sales taxes do NOT apply to a vehicle purchase u2014 vehicles sit outside the chapter those local taxes attach to.
• Your trade-in reduces the taxable amount with no dollar cap. It has to be another motor vehicle though: trading in a boat, ATV or snowmobile toward a car gets you nothing off the tax.
• Manufacturer rebates REDUCE the taxable amount in Minnesota, which is the friendlier treatment and the opposite of most states. Third-party rebates count too, and so does an EV credit taken as a point-of-sale down payment u2014 the same credit claimed later on your tax return does not.
• The doc fee is capped at the lesser of $350 or 10% of the sale price, and it is NOT taxed. The $350 figure is the last step of a three-step increase that finished in July 2025; it is not inflation-indexed, so it stays put until the legislature moves it.
• Freight and destination ARE taxed in Minnesota, and so are dealer-installed accessories. Extended warranties are not.
• Watch for a quirk: destination and options are inside the sales-tax base but OUTSIDE the registration-tax base, which runs on base MSRP only. The same car produces two different numbers.
• Some counties and cities add a flat $20 vehicle excise tax collected by the dealer. It depends on where you take delivery, and the state's published list of participating jurisdictions is several years old and admits it is incomplete, so treat $20 as possible even if your area is not listed.
• Minnesota dealers handle the tax, title, plates and registration, so the total above is what you should expect to pay at the dealership. You drive off on a 60-day temporary permit while plates process.

Rules last verified Oct 1, 2026. Our methodology.

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