States · Minnesota

Minnesota Vehicle Registration Cost

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.

How Minnesota calculates registration

• Registration Tax (value-based portion) — 1.575% of depreciated value (annual) Per Minn. Stat. 168.013. Calculated as 1.575% (1.50% base + 5% surtax) of MSRP × age depreciation factor. The factor decreases by 10 percentage points each year for the first 10 years, then flattens at the $20 minimum from year 11 onward. Together with the separate $10 base fee shown below, this gives MN drivers a registration tax that decreases steeply over a vehicle's first decade.
• Registration Tax (flat base portion) — $10 (annual) The $10 fixed component of the annual registration tax, added to the value-based amount above per Minn. Stat. 168.013 subd. 1a.
• Technology Surcharge — $2 (annual) Annual technology surcharge funding DVS IT infrastructure.
• County Wheelage Tax (typical) — $10 (annual) Per Minn. Stat. 163.051. Optional county-level fee, $10-$20/year. About half of Minnesota's 87 counties opt in — the Twin Cities metro counties (Hennepin, Ramsey, Anoka, Dakota, Washington, Carver, Scott) all charge $20. Many rural counties charge $10 or nothing at all.
• Title Fee — $8 (one-time) One-time fee for new title.
• Filing Fee — $11 (one-time) Charged at title and registration transactions.
• License Plate Fee — $14 (one-time) One-time fee for new double-plate set.

Sales tax

Minnesota charges 6.875% state Motor Vehicle Sales Tax (MVST) . Trade-in credit: full. Tax basis: purchase price.

Minnesota's vehicle sales tax (MVST) is collected at title transfer at a 6.875% statewide rate with no local additions — unlike general retail sales tax which can have local additions in some Twin Cities metro cities. MVST applies to dealer and private-party sales alike. Trade-in value is fully credited.

Electric vehicle surcharge

Minnesota charges an additional $75/year for electric vehicles.

Per Minn. Stat. 168.013 subd. 1m. Battery EVs and plug-in hybrids both pay $75/year additional registration. Minnesota previously offered an EV purchase rebate of up to $2,500 through the Drive Electric Minnesota program — funding may be limited; check current status.

What makes Minnesota distinctive

• Minnesota's value-based registration tax depreciates aggressively: a $35,000 vehicle pays $561 in year 1 (= $10 + $35K × 1.575%), drops to about $440 in year 4, $285 in year 6, and just $20 from year 11 onward. The state's average vehicle is 11+ years old, which is why average annual registration tax across all MN vehicles is only ~$178.
• Minnesota's MVST (Motor Vehicle Sales Tax) at 6.875% has NO local additions — every county pays the same rate. This is unusual among large states (WI has local additions, IL goes up to 11%, IA varies by county). Combined with full trade-in credit, MN's vehicle purchase tax is competitive.
• Minnesota's county wheelage tax of $10-$20/year is optional at the county level. The 7 Twin Cities metro counties (Hennepin, Ramsey, Anoka, Dakota, Washington, Carver, Scott) all charge $20. Many rural counties charge nothing — check your county clerk for the current rate.
• Minnesota's $75/year EV surcharge is moderate compared to Wisconsin ($175), Pennsylvania ($250), or Georgia ($214). Plug-in hybrids also pay $75/year. Minnesota previously offered up to $2,500 in EV purchase rebates through Drive Electric Minnesota, though program funding has been uneven year to year.
• Minnesota uses the original MSRP as the depreciation base, not the purchase price. A buyer who pays $20,000 for a used vehicle with $35,000 original MSRP pays the registration tax based on the $35,000 figure, depreciated by age. The MSRP is captured at first MN registration and used for the life of the vehicle.