Minnesota car sales tax: 6.875% and what it applies to

How the Minnesota rate is set

Minnesota charges 6.875%, and that rate is the same everywhere in the state — no county or city adds to it on a vehicle purchase.

What sits inside the taxable amount

Taxed on top of the vehicle price: dealer-installed accessories.
Not part of the taxable amount: the dealer doc fee and extended warranties and service contracts.
Your trade-in comes off before tax is calculated.

What's specific to Minnesota

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.

Run your own numbers

Vehicle price

$

The negotiated (or advertised) selling price, before fees and tax.

Your ZIP code

Tax and registration follow where YOU register — not the dealership.

Condition

New Used CPO

Fuel

EV/PHEV surcharges apply in many states.

More options — trade-in, rebates, doc fee, add-ons

Trade-in value

$

Reduces your taxable amount only in states that allow it.

Trade-in loan payoff

$

Display-only in the equity math — doesn't affect tax.

Manufacturer rebate

$

Taxed in some states, a tax-free discount in others.

Dealer discount

$

Off-invoice discount from the dealer — different from a rebate for tax.

Dealer doc fee (if quoted)

$

Leave blank to use your state's cap or the typical amount.

Dealer add-ons total

$

Nitrogen, VIN etch, protection packages… labeled negotiable in the output.

F&I products total (VSC, GAP…)

$

Excluded from tax in some states when itemized separately.

Model year

MSRP / vehicle value

$

Needed in states with value-based registration (AZ VLT, NV GST).

Financing the purchase I have a plate to transfer (matters in Florida — skips the $225 initial registration)

Truck / commercial (California weight fees)

Vehicle type

Pickups always use the unladen-weight schedule (VC §9400) — never CVRA.

Curb (unladen) weight, lbs

On the door-jamb sticker. Blank = typical half-ton bracket ($80).

Axles

Declared GVW/CGW, lbs

As declared on the REG 4008. CVRA vehicles skip the TIF.

Used vehicle details (California)

Plate expiration (month)

Expired or expiring within 120 days of purchase → renewal fees ride along with the deal. Blank = assume they're due (safe estimate).

No current California plates (out-of-state car — full first registration + smog test due)

My price already includes…

Some dealers now fold fees into the advertised price (FTC pressure; California's total-price law). Check what yours covers so nothing gets counted twice.

Doc fee Emissions / smog testing charge (used vehicles)

Common questions

What is the car sales tax rate in Minnesota?

6.875%, statewide, with no local add-on for vehicles.

Is the doc fee taxed in Minnesota?

No. Minnesota excludes the doc fee from the taxable amount, so you pay the fee but not tax on it.

More on buying a car in Minnesota

Minnesota: Doc fee rules

Minnesota: Registration and title fees

Full Minnesota out-the-door guide

Source: Minnesota DOR Motor Vehicle Sales guide; Minn. Stat. ch. 297B; DVS · rules last verified Oct 1, 2026. Methodology.