Overview
The $10 in-lieu rate catches people off guard the most: it only applies when the vehicle is 10 model years or older AND both your purchase price and its average value are under $3,000 - miss either condition and you owe the full 6.875% on the real price. Pick your scenario below.
01 - Official fees
Minnesota car sales tax fees at a glance
| Fee | Amount | Notes |
|---|---|---|
| Standard rate | 6.875% | of price minus trade-in allowance |
| In-lieu tax | $10 | model year 10+ AND price/value under $3,000 |
| Collector-class in-lieu tax | $150 | Collector, Classic, Street Rod, Pioneer plates |
| Family gift | Exempt | spouse, parent/child, grandparent/grandchild, sibling |
| Non-family gift or $0/$1 'sale' | 6.875% | taxed on fair market value, not the token price |
| Local vehicle excise tax | up to $20 | rare - a small number of jurisdictions, collected by the dealer, not a rate stack |
Figures verified June 2026 against official sources (listed below). Always confirm the final amount with your local deputy registrar office (MN Driver and Vehicle Services) - counties can add small local fees.
03 - Same state, other costs
More Minnesota vehicle costs
04 - Common questions
Minnesota car sales tax FAQ
How much sales tax will I pay on a $22,000 used car in Minnesota?
$1,512.50 at 6.875%, assuming no trade-in. Trade in a car worth $6,000 against it and you're taxed on $16,000 instead - $1,100, a $412.50 saving.
What exactly qualifies a car for the $10 in-lieu tax?
The vehicle's model year must be 10 years or older, and both your purchase price and its average (fair market) value must be under $3,000. A 12-year-old car you bought for $2,500 qualifies; the same car with a $3,200 price tag does not.
Can I just tell the deputy registrar I paid less than I did, to hit the $10 threshold?
No - the registrar cross-checks against standard valuation guides, and understating a sale price on the required tax statement can be treated as a misdemeanor.
Who counts as family for the MVST gift exemption?
Spouses, parents and children (including step- and adopted), grandparents and grandchildren, and siblings. Aunts, uncles, cousins, and unmarried partners don't qualify and owe tax on fair market value even if no money changes hands.
I bought my car in Wisconsin - do I pay Minnesota MVST again?
You owe Minnesota's 6.875% when you title it here, but you get a credit for sales tax legally paid to the other state, so you only pay the difference, or nothing, if the other state's rate was equal or higher.
Does a Collector or Street Rod plate always save money?
Only above roughly $2,182 in value - below that, the standard 6.875% rate (or the $10 in-lieu rate, if it also qualifies) is cheaper than the flat $150.
05 - Receipts
Official sources
Every number on this page comes from these documents - check them yourself.