Auto Loan Calculator MN
Calculate your car payment in Minnesota with accurate state taxes. Includes 6.875% MN sales tax, Metro Area transit tax, trade-in credit, and early payoff savings.
Minnesota Auto Tax Rates (2024-2025)
🚗 Loan Details
✓ Trade-in and rebates reduce your taxable amount in MN
Metro counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington
📊 Your Car Payment
Estimated Monthly Payment
$652.71
60 months at 7.49% APR
Cost Breakdown
Total Interest
$6,581
Total Cost
$44,162
📊 Auto Loan Interest Rates by Credit Score
| Credit Score | New Car APR | Used Car APR | Notes |
|---|---|---|---|
| 750+ (Excellent) | 5.99% | 7.49% | Best rates, shop multiple lenders |
| 700-749 (Good) | 7.49% | 9.99% | Good rates, room for negotiation |
| 650-699 (Fair) | 10.99% | 14.49% | Consider credit improvement first |
| 600-649 (Poor) | 14.99% | 18.99% | High rates, large down payment helps |
| Below 600 | 18.99% | 22.99% | May require cosigner or subprime lender |
* Rates are estimates based on national averages. Actual rates depend on lender, loan term, and individual factors.
🚗 Minnesota Auto Loan Guide
Minnesota Car Sales Tax Explained
Minnesota charges a 6.875% Motor Vehicle Sales Tax on all vehicle purchases. This rate increased from 6.5% in July 2023. If you live in the Twin Cities Metro Area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington counties), an additional 0.5% transit tax applies, bringing your total to 7.375%.
How Trade-Ins Save You Money
Minnesota allows you to subtract your trade-in value from the purchase price before calculating sales tax. This is a significant benefit. For example, on a $35,000 car with a $10,000 trade-in, you only pay tax on $25,000. At 7.375%, that saves you $737.50 in taxes. Manufacturer rebates work the same way - they reduce your taxable amount.
Choosing the Right Loan Term
While 72 and 84-month loans offer lower monthly payments, they cost significantly more in total interest. A $30,000 loan at 7% APR costs $4,400 in interest over 60 months, but $7,900 over 84 months - that's $3,500 more! We recommend the shortest term you can afford to minimize total cost and avoid being "upside down" on your loan.
🏷️ MN Tax Quick Reference
✅ Money-Saving Tips
- Maximize your trade-in value
- Ask about manufacturer rebates
- Shop multiple lenders for rates
- Choose shorter loan terms
- Make extra payments when possible
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Frequently Asked Questions
Minnesota charges a 6.875% Motor Vehicle Sales Tax on vehicle purchases. If you're in the Twin Cities Metro Area (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington counties), an additional 0.5% transit tax applies, bringing the total to 7.375%. The tax is calculated on the vehicle price minus any trade-in value and manufacturer rebates.
For a $30,000 car in Minnesota: In Greater Minnesota, the tax would be $2,062.50 (6.875%). In Metro Area counties, it would be $2,212.50 (7.375%). If you have a $5,000 trade-in, you'd only pay tax on $25,000, saving you $343.75 to $368.75 in taxes depending on location.
Minnesota allows you to subtract your trade-in value from the purchase price before calculating sales tax. For example, buying a $35,000 car with a $10,000 trade-in means you only pay tax on $25,000. At 6.875%, that's $1,718.75 instead of $2,406.25 - a savings of $687.50. Manufacturer rebates also reduce your taxable amount.
Yes, 84-month (7-year) auto loans are available in Minnesota from many lenders. While longer terms mean lower monthly payments, you'll pay significantly more in total interest. An 84-month loan at 7% on $30,000 costs about $7,900 in interest, compared to $4,400 for a 60-month loan. Consider if the lower payment is worth the extra cost.
For the best rates (around 5-7% APR), you'll need a credit score of 750 or higher. Scores of 700-749 typically get rates around 7-10%. Fair credit (650-699) may see rates of 11-15%, while scores below 650 often face rates of 15-20% or higher. Improving your score by even 50 points before buying can save thousands in interest.
Monthly payment = [P × r × (1+r)^n] / [(1+r)^n - 1], where P = principal (loan amount), r = monthly interest rate (APR/12), and n = number of months. For a $25,000 loan at 7% APR for 60 months: Monthly payment = $495.03. Our calculator does this automatically and includes Minnesota taxes.
🚗 Disclaimer: This calculator provides estimates for informational purposes only. Actual loan terms, interest rates, and taxes may vary. Tax rates are current as of 2024-2025. Always verify with your lender and the Minnesota Department of Revenue for accurate figures.