Minnesota vs North Dakota

Registering a new $35,000 vehicle costs about $1,843 in North Dakota versus $3,013 in Minnesota — a $1,170 first-year advantage for North Dakota.

Minnesota
$3,013
first year, $35K gas car
vs +$1,170
North Dakota
$1,843
first year, $35K gas car

Cost comparison

Minnesota North Dakota Difference
First-year total
All-in cost to register a new $35,000 gas vehicle for the first time, including sales tax, title, and registration.
$3,013 $1,843 +$1,170
Annual renewal (year 2+)
Recurring annual cost after the first year — what you actually pay every year you own the car.
$518 $76 +$442
Sales tax (one-time)
Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates.
$2,406 $1,750 +$656
Combined sales tax rate
State rate plus typical local rate (where applicable).
6.88% 5.00% +1.88 pp
EV first-year total
Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges.
$3,088 $1,963 +$1,125
EV annual renewal
Recurring EV-ownership cost in year 2+.
$593 $196 +$397
EV surcharge
Annual EV-specific registration fee (zero in states without one).
$75 $120 −$45

How each state structures it

Minnesota

Minnesota uses a value-based registration tax that's rare in its structure: $10 base fee plus 1.575% of the vehicle's original MSRP times an age depreciation factor that starts at 100% and decreases by ~10 percentage points per year, eventually flattening at a $20 minimum from year 11 onward. Combined with a 6.875% Motor Vehicle Sales Tax (MVST), full trade-in credit, and modest title/filing fees ($8.25 + $11), Minnesota is mid-cost overall. The Twin Cities metro counties all charge a $20/year county wheelage tax; rural counties may charge $10 or nothing. EVs pay an extra $75/year. A new $35,000 vehicle in Hennepin County (Minneapolis) runs about $3,050 in first-year costs, with annual renewals around $585 in year 1 dropping to about $115/year by year 10.

North Dakota

North Dakota has one of the simpler vehicle tax structures: 5% Motor Vehicle Excise Tax replaces sales tax (no local additions, full trade-in credit), weight-based annual registration around $76 for typical passenger vehicles, and just $5 for the title fee. No annual ad valorem on vehicles. No state-mandated emissions testing or inspections. EV surcharge is $120/year (PHEV $50). A new $35,000 vehicle in North Dakota runs about $1,843 in first-year costs (mostly the $1,750 MVET + $76 registration + small fees), with annual renewals around $76.

What this means for you

Frequently asked questions

Is it cheaper to register a car in Minnesota or North Dakota?

North Dakota is cheaper to register a new $35,000 vehicle: $1,843 first year vs $3,013 in Minnesota, and the gap continues into annual renewals.

What is the sales tax difference between Minnesota and North Dakota?

Minnesota charges 6.88% combined sales tax on vehicles; North Dakota charges 5.00%. On a $35,000 purchase that's $2,406 in Minnesota vs $1,750 in North Dakota.

Do Minnesota and North Dakota both charge EV registration fees?

Minnesota: $75/year EV surcharge. North Dakota: $120/year EV surcharge. EV fees are added on top of standard registration costs.

Official sources: Minnesota DVSNorth Dakota DOT Motor Vehicle Division

Data last updated: 2026-05-23