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Minnesota vehicle taxes & fees

Tabs are a tax on the vehicle's value recalculated every year, so a new SUV can owe over $550 while a ten-year-old sedan pays the $20 statutory floor.

verified July 2026your local deputy registrar office (MN Driver and Vehicle Services)

How Minnesota charges

What you actually pay, and to whom

In short

Minnesota has no DMV. Titles and registrations are processed by deputy registrar offices, run by counties and cities but licensed by Driver and Vehicle Services within the Department of Public Safety, and any deputy registrar statewide can handle an out-of-county transaction. Motor vehicle sales tax is 6.875%, raised from 6.5% by the 2023 Legislature, flat everywhere with no local add-on. A $30,000 car owes $2,062.50 in MVST, plus an $8.25 title fee, a separate $10 transfer tax, a $3.50 Public Safety Vehicle fee, a $2.25 technology surcharge, a $12 filing fee and a $15.50 plate fee.

The number people underestimate is the registration tax itself, which Minnesotans call tabs. It is not a flat fee. Under Statute 168.013 it is $10 plus 1.575% of the vehicle's original base value, meaning MSRP plus destination charge rather than the price you negotiated. A new $35,000 SUV can run $550 or more in first-year tabs and a $40,000 truck over $600. That base value then depreciates on a fixed schedule until the tenth registration year, when nearly every vehicle drops to the $20 statutory minimum and stays there.

Tabs are a depreciating tax on the original base value

The taxable base is 100% of original base value in the first registration year, then 95%, 90%, 80%, 70%, 60%, 50%, 40% and 25% across years two through nine. Multiply the result by 1.575% and add $10. Vehicles continuously registered since before November 16, 2020 use a legacy rate of 1.54% instead. From the tenth year on the calculated figure falls under the $20 statutory minimum for almost every car, so a 15-year-old sedan and a 25-year-old one usually pay the identical $20. Every plate also carries about $11.25 that has nothing to do with the vehicle: an $8 filing fee on a renewal, the $2.25 technology surcharge and a $1 administrative fee.

Two flat in-lieu rates can replace the 6.875% entirely

A passenger vehicle that is 10 model years or older owes a flat $10 in lieu of MVST, but only when both the purchase price and the vehicle's average value are under $3,000. Fail either condition and the full 6.875% applies to the real price, so a 12-year-old car bought for $2,500 qualifies and the same car at $3,200 does not. Separately, a vehicle plated as Collector, Classic, Street Rod or Pioneer under Statute 168.10 pays a flat $150 regardless of what it is worth. That only saves money above roughly $2,182 in value; below that figure the standard rate, or the $10 rate if it also applies, is cheaper.

About half of the 87 counties add a wheelage tax

Counties may adopt a wheelage tax of up to $20 a year under Statute 163.051, and roughly 40 of Minnesota's 87 counties have done so. Hennepin and Ramsey both charge the full $20. Dakota charges $10. Counties that never adopted it add nothing at all, which means the same car costs $20 a year more to keep in Minneapolis than in a non-adopting county next door. The charge is folded into the registration bill rather than invoiced separately, so it is easy to miss on a renewal notice. Motorcycles are exempt from it entirely, because the wheelage tax attaches to passenger vehicle registrations only.

The EV surcharge is a percentage with a floor, not a flat fee

For registration periods starting January 1, 2026, a battery-electric vehicle pays the greater of $150 or 0.5% of the same depreciating base value used for the regular registration tax. A plug-in hybrid pays the greater of $75 or 0.25%. The stated figures are minimums, which is why a new $55,000 electric vehicle can compute to $275 or more rather than the headline $150. The BEV minimum doubled from $75 under the 2025 legislation that set the current structure through June 30, 2027. Because the surcharge tracks the depreciation schedule, it falls as the vehicle ages and drops to the minimum once the car reaches its tenth registration year.

Ten business days on a title, and tabs keyed to the month on your plate

Statute 168.301 gives a buyer 10 business days from the sale date to file the transfer with a deputy registrar, a tighter window than the 30 calendar days common elsewhere, though counting business days rather than calendar days softens a weekend purchase. Missing it adds a flat $2 late fee that does not grow. The bigger exposure is that DVS records still show the seller as owner until the transfer clears, so parking tickets and toll violations keep chasing the wrong name. Tabs expire on the last day of the month printed on the plate rather than on a birthday, renewal opens about 60 days early, and the new sticker has to be displayed by the 10th of the following month. Minnesota ended emissions testing in December 1999 and has no periodic safety inspection, so nothing has to be tested first.

What moves the number

Four things that change a Minnesota bill

  • The $10 rate has two conditions

    Both the purchase price and the vehicle's average value must be under $3,000, and the model year must be at least 10 years old. Meeting only one condition means the full 6.875% on the real price. Understating a price to reach the threshold can be charged as a misdemeanor.

  • Collector plates pay off above $2,182

    Collector, Classic, Street Rod and Pioneer plates carry a flat $150 in-lieu tax no matter the vehicle's value, which beats 6.875% only once the value passes roughly $2,182. On a cheaper car the standard rate, or the $10 old-vehicle rate, costs less.

  • Trade-in cuts the MVST base

    Minnesota taxes the sale price minus the trade-in allowance. Trading a $6,000 car against a $22,000 purchase drops the taxable base to $16,000, cutting the tax from $1,512.50 to $1,100. A vehicle bought and taxed in another state also earns credit for tax legally paid there.

  • The gift list stops at siblings

    Spouses, parents and children including step and adopted, grandparents and grandchildren, and siblings transfer free of MVST. Nieces, nephews, cousins, in-laws and unmarried partners are not on the list and are taxed at 6.875% of fair market value even when nothing is paid.

Questions

Minnesota fees, answered

How does Minnesota calculate my tab fee?
Statute 168.013 sets the registration tax at $10 plus 1.575% of the vehicle's original base value, which is MSRP plus destination charge rather than what you paid. That base depreciates each registration year at 100%, 95%, 90%, 80%, 70%, 60%, 50%, 40% and 25%. Vehicles continuously registered since before November 16, 2020 use a 1.54% legacy rate. From year ten on, the $20 statutory minimum takes over.
Which Minnesota counties charge the wheelage tax?
Roughly 40 of the state's 87 counties have adopted one under Statute 163.051, which caps it at $20 a year. Hennepin and Ramsey charge the full $20 and Dakota charges $10, while counties that never adopted it add nothing. It appears folded into the registration total rather than as a separate bill, and motorcycles are exempt from it.
What qualifies a car for Minnesota's $10 in-lieu tax?
The vehicle must be 10 model years or older, and both the purchase price and its average value must be under $3,000. All three conditions have to hold. A 12-year-old car bought for $2,500 qualifies; the same car sold at $3,200 owes the full 6.875%. Deputy registrars cross-check declared prices against standard valuation guides, and understating a sale price can be treated as a misdemeanor.
Does Minnesota require an emissions or safety inspection?
No. The state ended its vehicle emissions inspection program in December 1999 and has never reinstated it, and there is no periodic safety inspection requirement for private vehicles. Renewing tabs is purely a payment transaction, whether done at mndriveinfo.org, by mail or at a deputy registrar office, and the total is the same through any of those channels.
Why is my Minnesota EV surcharge higher than $150?
Because $150 is a floor, not a flat fee. A battery-electric vehicle pays the greater of $150 or 0.5% of the same depreciating base value the regular registration tax uses, so a new $55,000 EV can compute to $275 or more. Plug-in hybrids work the same way at the greater of $75 or 0.25%. Both figures shrink as the base value depreciates each year.
How long do I have to transfer a title in Minnesota?
Ten business days from the sale date under Statute 168.301, filed at any deputy registrar office rather than a DMV, since Minnesota does not operate one. The late fee is a flat $2 and does not escalate. The paperwork itself totals about $33.50 before tax: $8.25 title, $10 transfer tax, $3.50 Public Safety Vehicle fee, $2.25 technology surcharge and a $12 filing fee, plus $2 for each lien recorded.