General local sales taxes, including the metro transit tax, do not apply to vehicles. Some counties and cities charge a flat $20 vehicle excise tax instead. Both trade-ins and rebates reduce the taxable price, which is generous. A passenger car that is 10 or more model years old and sells for under $3,000 pays a flat $10.
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Sources
Statute: Minn. Stat. § 297B.02
Minn. Stat. ch. 297B “There is imposed an excise tax of 6.875 percent on the purchase price of any motor vehicle purchased or acquired ... In lieu of the tax imposed in subdivision 1, there is imposed a tax of $10”
Minnesota Department of Revenue, Motor Vehicle Sales “Local sales tax does not apply to sales of vehicles. Instead, a local vehicle excise tax may apply. ... The taxable sales price is determined by subtracting any rebates and trade-in allowance from the vehicle sales price.”
Last verified: September 21, 2026.
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Estimates only. Your dealer or the state issues the final bill, and exemptions can change what you owe. This page does not collect or store anything you enter.