‘More than my car payment’: Minnesota drivers shocked by soaring tab fees

For many Minnesotans, the sticker shock doesn’t end when they drive off the car lot.

It shows up a year later in the mailbox.

A 25-year veteran of vehicle sales in central Minnesota says customers are now calling in disbelief after opening renewal notices for their tabs — in some cases finding fees that rival or even exceed their monthly car payments.

“It is more than my car payment,” the veteran salesman told Alpha News, describing what many customers say when they call after receiving their renewal notice.

According to the salesman, many residents do not realize the state calculates tab fees based on the vehicle’s base value, not necessarily the negotiated purchase price.

The higher renewal costs trace back to a 2023 transportation funding bill passed by the DFL-controlled legislature, which increased the base tab tax rate and slowed how quickly a vehicle’s value depreciates for registration purposes.

Shock arrives a year later

The longtime salesman, who asked not to be named, said many buyers do not initially realize how expensive Minnesota’s registration fees are because those costs are often rolled into financing at the time of purchase.

That often leaves customers blindsided when the first renewal notice arrives.

“All of a sudden, they get their tab renewals a year later, and they’re like, ‘Well, this is more than my car payment,’” he said. “Yeah, it is. It’s pretty crazy.”

He said the dealership regularly receives calls from stunned customers once the first renewal notice arrives.

“We do get phone calls,” he said. “They’re absolutely shocked.”

The salesman said he recently experienced the same surprise at home.

“I just personally got my renewal. It was $1,300,” he said. “My wife opens up the envelope, she’s like, ‘What?’”

He also recounted speaking to a Minnesota transplant from Texas who was stunned by a roughly $600 tab renewal and initially thought it had to be a mistake.

“She wanted to fight the state of Minnesota,” he said. “She’s like, ‘There’s no way this vehicle tabs cost this much.’”

Alpha News reported in March that Republicans unveiled legislation looking to ease financial pressure on Minnesota families, including a bill from Sen. John Jasinski to lower vehicle tab fees.

At a press conference last month, Jasinski said Minnesota’s tab fees are “the most expensive in the region. It’s not even close. We heard the frustrations and we are ready to fix it.”

Rep. Patti Anderson, who’s carrying the bill in the Minnesota House, said Republicans want to “move the tab fee back to the way it was before the DFL trifecta dramatically increased the cost of driving a car.”

WATCH: Rep. Patti Anderson on her bill to lower tab fees: “$1,300 just to renew your tab fees … Minnesota has become completely unaffordable. ”

“Even a car that’s 7 or 8 years old, the tab fees are $3-400 … We need to move the tab fee back to the way it was before the DFL… pic.twitter.com/A1t6PPR7Mr

— Alpha News (@AlphaNews) March 24, 2026

“It is an absolute sticker shock in this state,” she said. “Minnesota has become completely unaffordable.”

Jenna Gloeb

Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.