Minnesota vs North Dakota
Registering a new $35,000 vehicle costs about $1,843 in North Dakota versus $3,013 in Minnesota — a $1,170 first-year advantage for North Dakota.
Cost comparison
| Minnesota | North Dakota | Difference | |
|---|---|---|---|
| First-year total All-in cost to register a new $35,000 gas vehicle for the first time, including sales tax, title, and registration. | $3,013 | $1,843 | +$1,170 |
| Annual renewal (year 2+) Recurring annual cost after the first year — what you actually pay every year you own the car. | $518 | $76 | +$442 |
| Sales tax (one-time) Sales/use/excise tax owed at purchase on a $35,000 vehicle, using typical local rates. | $2,406 | $1,750 | +$656 |
| Combined sales tax rate State rate plus typical local rate (where applicable). | 6.88% | 5.00% | +1.88 pp |
| EV first-year total Same $35K scenario but as a battery electric vehicle, capturing EV-specific surcharges. | $3,088 | $1,963 | +$1,125 |
| EV annual renewal Recurring EV-ownership cost in year 2+. | $593 | $196 | +$397 |
| EV surcharge Annual EV-specific registration fee (zero in states without one). | $75 | $120 | −$45 |
How each state structures it
Minnesota
Minnesota uses a value-based registration tax that's rare in its structure: $10 base fee plus 1.575% of the vehicle's original MSRP times an age depreciation factor that starts at 100% and decreases by ~10 percentage points per year, eventually flattening at a $20 minimum from year 11 onward. Combined with a 6.875% Motor Vehicle Sales Tax (MVST), full trade-in credit, and modest title/filing fees ($8.25 + $11), Minnesota is mid-cost overall. The Twin Cities metro counties all charge a $20/year county wheelage tax; rural counties may charge $10 or nothing. EVs pay an extra $75/year. A new $35,000 vehicle in Hennepin County (Minneapolis) runs about $3,050 in first-year costs, with annual renewals around $585 in year 1 dropping to about $115/year by year 10.
North Dakota
North Dakota has one of the simpler vehicle tax structures: 5% Motor Vehicle Excise Tax replaces sales tax (no local additions, full trade-in credit), weight-based annual registration around $76 for typical passenger vehicles, and just $5 for the title fee. No annual ad valorem on vehicles. No state-mandated emissions testing or inspections. EV surcharge is $120/year (PHEV $50). A new $35,000 vehicle in North Dakota runs about $1,843 in first-year costs (mostly the $1,750 MVET + $76 registration + small fees), with annual renewals around $76.
What this means for you
- Buying a new car: North Dakota is roughly $1,170 cheaper than Minnesota in the first year on a $35K vehicle, driven mostly by sales tax and one-time fees.
- Annual renewal: North Dakota is cheaper to renew annually by about $442/year. Over a 5-year ownership period that's roughly $2,212 in renewal-fee savings alone.
- If you drive an EV: Minnesota's EV surcharge ($75/year) is meaningfully lower than North Dakota's ($120/year) — a 38% savings on the EV fee alone.
- Structural differences: Neither state imposes an annual ad valorem vehicle property tax, so renewal costs stay relatively flat after the first year for both.
Frequently asked questions
Is it cheaper to register a car in Minnesota or North Dakota?
North Dakota is cheaper to register a new $35,000 vehicle: $1,843 first year vs $3,013 in Minnesota, and the gap continues into annual renewals.
What is the sales tax difference between Minnesota and North Dakota?
Minnesota charges 6.88% combined sales tax on vehicles; North Dakota charges 5.00%. On a $35,000 purchase that's $2,406 in Minnesota vs $1,750 in North Dakota.
Do Minnesota and North Dakota both charge EV registration fees?
Minnesota: $75/year EV surcharge. North Dakota: $120/year EV surcharge. EV fees are added on top of standard registration costs.
Official sources: Minnesota DVS • North Dakota DOT Motor Vehicle Division
Data last updated: 2026-05-23