1. What is Minnesota Vehicle Sales Tax?

Minnesota charges a 6.5% sales tax on motor vehicle purchases. This tax applies to both new and used vehicles purchased from dealers or private sellers.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Vehicle Price — The purchase price of the vehicle in USD
• 0.065 — Minnesota's 6.5% sales tax rate

3. Importance of Calculating Vehicle Tax

Details: Knowing the sales tax amount helps buyers budget for their total vehicle purchase cost and understand their financial obligations when registering the vehicle.

4. Using the Calculator

Tips: Enter the vehicle purchase price in USD (without commas). The price must be greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: Are there any exemptions to Minnesota vehicle sales tax?
A: Yes, certain transactions like trade-ins, gifts between family members, and some business purchases may qualify for exemptions.

Q2: Is the tax based on purchase price or market value?
A: The tax is based on the actual purchase price, not the vehicle's market value.

Q3: Are there additional fees beyond the sales tax?
A: Yes, Minnesota also charges registration fees, title fees, and possibly county wheelage taxes.

Q4: How is tax calculated for leased vehicles?
A: For leases, tax is calculated on each monthly payment rather than the full vehicle price.

Q5: When is the sales tax due?
A: The tax is due when you register the vehicle with the Minnesota DVS.