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FACT BRIEF

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

By Jayne Williamson-Lee
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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. 

This fact brief is responsive to conversations such as this one.
Sources
Minnesota Legislature HF 2887
Minnesota Driver and Vehicle Services Vehicle registration tax estimator: Minnesota Driver and Vehicle Services > Renew a Vehicle Registration
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.