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Friday, Aug. 4, 2023

Does a new state law increase the cost of vehicle registration taxes in Minnesota?

Jayne Williamson-Lee, MinnPost
yes

Vehicle registration tax changes will go into effect for the period starting on January 1, 2024, increasing the rate from 1.25% to 1.54% of the manufacturer's suggested retail price and destination charge for cars registered in Minnesota before November 16, 2020, and from 1.285% to 1.575% for those registered on or after November 16, 2020. The adjusted MSRP depreciation schedule starts with 100% in the first year, declining in years two to nine as follows: 95%, 90%, 80%, 70%, 60%, 50%, 40%, and 25%. Vehicles in the eleventh and seceding years have a $20 minimum, reduced from $25.

Previous tax for vehicles registered on or after November 16, 2020 was $10 plus 1.285% of the car’s base value. Prior to that date, tax was $10 plus 1.25% of the car’s base value. Costs decreased by 10% each year until it reached 10% in the tenth year.

A tool to estimate vehicle registration tax is available on the Minnesota Driver and Vehicle Services website. 

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