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Aircraft tax · United States

Minnesota aircraft sales and use tax

Minnesota charges its 6.5 percent sales or use tax plus an additional 0.375 percent and local tax on aircraft, including private sales. It taxes bare rentals but not flight instruction, or parts for aircraft operated under Part 91 or Part 135. Aircraft also pay a yearly registration tax set by list price, from $100, in place of property tax.

Every answer below quotes the state's own source. Last checked October 18, 2026. Estimate the tax on your aircraft

Do you pay sales tax on an aircraft bought in Minnesota?

Taxed. A 6.5 percent state sales tax plus an additional 0.375 percent required by the state constitution, and any local sales tax. Private sales are taxable too: the occasional sale exemption does not apply to aircraft, and the buyer pays use tax when registering the aircraft.

  • Except as otherwise provided in subdivision 3 or in this chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail sales as defined in section 297A.61, subdivision 4, made in this state or to a destination in this state by a person who is required to have or voluntarily obtains a permit under section 297A.83, subdivision 1.

    Minnesota Statutes, Section 297A.62, subdivision 1 · checked October 18, 2026

  • Except as otherwise provided in subdivision 3 or in this chapter, an additional sales tax of 0.375 percent, as required under the Minnesota Constitution, article XI, section 15, is imposed on the gross receipts from retail sales

    Minnesota Statutes, Section 297A.62, subdivision 1a · checked October 18, 2026

  • Aircraft dealers must charge the Minnesota general sales tax rate and any applicable local sales taxes at the time of sale, unless the sale qualifies for an exemption.

    Minnesota Department of Revenue, Aircraft Industry Guide: Taxable Sales · checked October 18, 2026

  • The exemption for an occasional sale under section 297A.67, subdivision 23, or 297A.68, subdivision 25, does not apply to the sale or purchase of an aircraft.

    Minnesota Statutes, Section 297A.82, subdivision 1 · checked October 18, 2026

Do you owe use tax on an aircraft bought outside Minnesota?

Depends. Use tax is due on an aircraft owned and used in Minnesota without Minnesota sales tax, plus local use tax where it is hangared. Sales tax paid to another state is credited; if that state's rate was lower, the owner pays the difference. Tax is settled when the aircraft is registered with MnDOT.

What aircraft sales tax exemptions does Minnesota have?

Depends. A nonresident who takes delivery in Minnesota is exempt if the aircraft leaves, is registered in another state or country, and returns only for interstate commerce or occasional use; up to ten days of training in Minnesota first is allowed. Airline equipment is exempt only for aircraft of 30,000 pounds or more. Aircraft bought to lease out are exempt as resale.

Are aircraft rentals taxed in Minnesota?

Depends. Rentals and leases without a pilot are taxable. Rentals with a pilot, including charter, are not taxed, but the operator pays tax when it buys the aircraft. A flying club's charges to its members, including dues and aircraft usage, are taxable.

Is flight instruction taxed in Minnesota?

Depends. Flight instruction fees are not taxed, but aircraft rental is, along with books and manuals. If the rental is separately stated the school collects tax on it; if it is bundled into the instruction fee, the school owes use tax on its own use of the aircraft.

Are aircraft parts and maintenance labor taxed in Minnesota?

Depends. Equipment, parts and installation labor to repair, maintain or upgrade aircraft operated under Part 91 or Part 135 are exempt. For other aircraft, parts are taxable; separately stated repair labor is not. Ultralights and sport planes do not get the parts exemption.

Does Minnesota register or tax aircraft every year?

Taxed. Aircraft using Minnesota airspace pay a yearly aircraft registration tax, in place of all other taxes on the aircraft, set by the manufacturer's list price: $100 up to $500,000, $200 up to $1,000,000, then rising in steps to $75,000 over $40,000,000. A Minnesota resident registers on acquiring an aircraft; a nonresident registers after more than 60 days of operation in a year.

AerScheduler can add sales tax, at the rates you set, to the invoices you raise for parts, labor and other charges, taxing only the lines your state taxes. How it works

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