Short answer
Minnesota taxes vehicle sales at 6.875% state plus local add-ons (depends on the dealer's location). Minnesota taxes the price after the trade-in is deducted. Minnesota exempts out-of-state buyers only under specific conditions. Minnesota credits sales tax legally paid to another state, so the same dollars are not taxed twice. Everything here assumes a retail purchase from a dealer, since most states treat leases and private-party sales differently.
Minnesota car sales tax quick facts
Last verified August 30, 2026| Sales tax rate on vehicles | 6.875% state plus local add-ons (depends on the dealer's location)[1] |
| Trade-in credit | Minnesota taxes the price after the trade-in is deducted. The credit applies when the seller takes a motor vehicle in trade.[1] |
| Selling to an out-of-state buyer | Minnesota exempts out-of-state buyers only under specific conditions. The buyer must state the vehicle will be registered in another state, and the dealer must verify the buyer's name and address on the buyer's driver's license against the signed contract. A local $20 vehicle excise tax can still be due even though the Motor Vehicle Sales Tax is not.[2] |
| Credit for tax paid to another state | Minnesota credits sales tax legally paid to another state, so the same dollars are not taxed twice. If the other state's rate is lower than Minnesota's, tax is due to Minnesota on the difference in rates. No Minnesota tax is due at all if you bought and titled the vehicle in your own name in the other state for at least 60 days.[3] |
| Dealer doc fee | Capped at $350[4] · not taxable[1] |
| Temp tag for the drive home | Minnesota issues a dedicated nonresident temporary permit: a $1 permit (fee waived when the dealer or deputy registrar transmits the sale electronically) issued to a nonresident buying a vehicle in Minnesota for the sole purpose of removing it from the state. It is valid 60 days from the date of sale and must be affixed to the rear of the vehicle.[5] |
| Out-of-state buyer registration | New residents have 60 days to register a passenger vehicle, motorcycle, utility trailer, or house trailer with Minnesota DVS. Titling requires the current out-of-state vehicle title (or an accepted substitute ownership document such as the most recent out-of-state registration card with a marked copy of the title).[6] |
Minnesota car sales tax calculator
Enter the sale price and any trade-in to estimate Minnesota vehicle tax and the out-the-door total before title and registration. It applies the verified rate, trade-in rule and doc fee treatment from the quick facts above.
From the desk
Minnesota taxes vehicles under its own motor vehicle sales tax at a flat statewide rate, collected with title work. Simple math, but the exemption and transfer rules live in their own statute, not the general sales tax law.
Selling to an out-of-state buyer in Minnesota
Minnesota exempts out-of-state buyers only under specific conditions. The buyer must state the vehicle will be registered in another state, and the dealer must verify the buyer's name and address on the buyer's driver's license against the signed contract. A local $20 vehicle excise tax can still be due even though the Motor Vehicle Sales Tax is not.[2]
The tax question gets settled at the desk; the follow-through does not. Titles, temp tags, and out-of-state registrations sit in flight for weeks, so somebody has to watch the dates.
Buying in Minnesota from out of state
If you live in another state and buy in Minnesota, the deciding rule is where the vehicle gets registered: your home state's tax applies at registration, and what happens at the Minnesota sale depends on the rule above. Minnesota credits sales tax legally paid to another state, so the same dollars are not taxed twice. If the other state's rate is lower than Minnesota's, tax is due to Minnesota on the difference in rates. No Minnesota tax is due at all if you bought and titled the vehicle in your own name in the other state for at least 60 days.[3]
Registration and temp tags
Minnesota issues a dedicated nonresident temporary permit: a $1 permit (fee waived when the dealer or deputy registrar transmits the sale electronically) issued to a nonresident buying a vehicle in Minnesota for the sole purpose of removing it from the state. It is valid 60 days from the date of sale and must be affixed to the rear of the vehicle.[5] New residents have 60 days to register a passenger vehicle, motorcycle, utility trailer, or house trailer with Minnesota DVS. Titling requires the current out-of-state vehicle title (or an accepted substitute ownership document such as the most recent out-of-state registration card with a marked copy of the title).[6]
Bordering states
Cross-border deals from Minnesota most often involve Iowa, North Dakota, South Dakota and Wisconsin. Each combination carries its own quirks; run the pair through the out-of-state checker.
Vehicle-type exceptions
Two flat in-lieu taxes replace the 6.875% rate. Passenger vehicles 10 model years or older sell for a flat $10 when both the purchase price and the average value of similar vehicles are under $3,000. Vehicles registered as Collector, Classic, Street Rod, or Pioneer, plus fire trucks, pay a flat $150. Motorcycles, motor homes, pickups, trailers, vans, and commercial trucks are all motor vehicles taxed at the standard rate.[7]
Sources
- www.revenue.state.mn.us/guide/motor-vehicle-sales · verified 2026-08-27
- www.revenue.state.mn.us/guide/miscellaneous-motor-vehicle-sales · verified 2026-08-27
- www.revenue.state.mn.us/guide/nontaxable-transactions-0 · verified 2026-08-27
- www.revisor.mn.gov/statutes/cite/168.27 · verified 2026-08-27
- www.revisor.mn.gov/statutes/cite/168.091 · verified 2026-08-27
- dps.mn.gov/…/vehicle-title-and-registration-those-new-mn · verified 2026-08-27
- dps.mn.gov/divisions/dvs/vehicle/vehicle-fees/vehicle-sales-tax · verified 2026-08-27
“Minnesota Car Sales Tax & Out-of-State Rules.” Voltra. Last verified August 30, 2026. https://voltra.ai/car-sales-tax/minnesota/
More state-by-state guides: trade-in tax credit by state · recent rule changes · all states + the out-of-state checker