Minnesota used car dealer paperwork and sales tax guide
How Minnesota sales tax works on a used-car deal, how trade-ins and dealer fees are treated, and the title forms and notices a Minnesota dealer prints.
Last checked November 14, 2026
This is a plain-language summary of how a used-car deal works out in Minnesota: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Minnesota deal.
Minnesota tax and fees at a glance
| Item | Minnesota |
|---|---|
| State tax | 6.875% state rate |
| Who pays it | Buyer, at titling or registration |
| Trade-in | Reduces the tax |
| Documentary fee | Not part of the taxable amount |
| Service contract | Not taxed |
| Starting title fee in DMS Apex | $8.25 |
How Minnesota sales tax is worked out
Minnesota: the 6.875% motor vehicle sales tax is paid at titling (deputy registrar or DVS), so the amount shown is an estimate and is not added to what is due now. The price after the trade-in is taxed; the documentary fee and extended warranties are not. Some areas add a $20 local excise tax collected by the dealer (see the Department of Revenue list). The documentary fee is capped at the lesser of $350 or 10% of the sale value. In the cities and counties that charge it, the dealer collects a $20 local vehicle excise tax and reports it on the sales tax return: add it as an other charge on the deal.
Minnesota paperwork a dealer prints
DMS Apex prints these documents for a Minnesota deal, all in black and white:
- PS2000A Application to Title and Register a Vehicle
- Buyer's Order
- Buyers Guide
Step-by-step form guides
- PS2000A Application to Title and Register a Vehicle: how to fill it out
This is general information, not legal or tax advice. Minnesota rules change: confirm current requirements with the Minnesota Department of Public Safety Driver and Vehicle Services or the Minnesota Department of Revenue.
Common questions
How much is sales tax on a used car in Minnesota?
6.875% state rate. A trade-in reduces the taxable amount. See the table above and confirm the current rate with the Minnesota Department of Public Safety Driver and Vehicle Services or the Minnesota Department of Revenue.
Does a trade-in lower the tax in Minnesota?
Yes. In Minnesota the trade-in allowance reduces the amount the tax is figured on.
Is the dealer fee taxed in Minnesota?
No. In DMS Apex the documentary fee is not part of the taxable amount for Minnesota.
Does DMS Apex print Minnesota dealer forms?
Yes. It prints PS2000A Application to Title and Register a Vehicle, Buyer's Order, Buyers Guide.
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