Minnesota car tax
Minnesota's yearly registration tax is $10 plus 1.575% of the car's MSRP (no destination charge), shrunk by a fixed schedule as the car ages. From year 11 it is a flat $30 total. You pay it with your tab renewal at Driver and Vehicle Services or a deputy registrar.
Minn. Stat. §168.013 subd. 1a (as amended 2025, for registration periods starting on or after Jan 1, 2026). Tax = $10 + 1.575% × MSRP × the depreciation percentage. The percentages are 100, 95, 90, 80, 70, 60, 50, 40, 25, and 10 for years 1–10, and the value part is $20 from year 11. Cars first registered in MN before Nov 16, 2020 use 1.54% of MSRP + destination. The tax cannot exceed the smallest amount previously paid. EVs pay an extra surcharge (0.5% of depreciated MSRP, minimum $150).
Minnesota car tax calculator
- $35,000 MSRP × 14.175 mills (vehicle age 2 yr) = $496.13
- Plus $10
Based on the manufacturer's original list price (MSRP), not what you paid. Your bill may be prorated for months you owned the car.
How the tax drops as a $35,000 car ages in Minnesota
Same car, each year of ownership. The rate falls as the car gets older.
Buying a car in Minnesota: one-time tax
Minnesota motor vehicle sales tax (MVST) — 6.5%. Your trade-in is subtracted before tax.
Some cities and counties also charge a $20 excise on vehicle purchases. General local sales taxes do not apply to cars.
Registration and due dates
The yearly amount is the registration tax described above, plus filing and technology fees of about $12–$20. A title costs about $11 plus fees.
Due every year with tab renewal, by the last day of the month your tabs expire.
Cut what your car costs in Minnesota
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
How is Minnesota registration tax calculated?
$10 plus 1.575% of the base value (MSRP). The value counts in full in year one, then 95%, 90%, 80%, 70%, 60%, 50%, 40%, 25%, and 10%. From year 11 the tax is $30.
Is Minnesota registration tax deductible?
The value-based part can be itemized as personal property tax. The $10 flat part cannot.
Does buying a used car reset the tax?
No. The tax follows the car's age, and for a car already registered in Minnesota it can never be more than the smallest amount previously paid on it.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.