-Minnesota property taxes are a major source of funding for schools, towns, and counties. They also help to fund specific community initiatives such as libraries and parks. Minnesota’s property tax rates are near to but somewhat higher than the national average. More specifically, the state’s average effective tax rate is 1.02%, compared to the national average of 0.99%.
Obviously, rates vary according to where you live. In urban places like Hennepin County, the median effective rate is 1.32%, whereas in rural regions like Becker County, the median effective rate is 0.80% or lower.
How the Minnesota Property Tax Works
Minnesota has two forms of property taxes: net tax capacity & market value levies.
Let’s start with levies depending on net tax capacity. To determine net tax capacity, deduct any market value exclusions from the property’s market value. The most popular exemption is the homestead exemption. The homestead exclusion applies to owner-occupied principal residences. There is no homestead exclusion for residences having a market value of $413,800 or above.
To calculate net tax capacity, multiply the remainder of the taxable market value by the home’s class rate after subtracting the exclusions. This refers to the value to which taxes are applied. The class rate differs with the form of property. The rate for residential homesteads is 1% on the first $500,000 of market value plus 1.25% on anything above $500,000. So, if the property you own is worth $400,000, your net tax capacity equals $4,000.
Local taxes received to fund continuing government activities (rather than transitory projects) count toward net tax capacity. Continuing with the preceding example, if the total local rate equals 90%, your taxes for this form of tax will be $3,600.
The second form of tax is a market-value levy. These taxes are often approved by voters and are levied directly on the estimated market value. With the above-mentioned $400,000 residence and a market value tax rate at 0.10%, the additional tax would be $400. Together with the aforementioned $3,600 in taxes, your net tax would be $4,000.
Find out more: Publication 530 (2023), Tax Information for Homeowners | Internal Revenue Service
What are the Minnesota Property Tax Rates?
As the preceding example shows, residences in Minnesota face a variety of tax rates from several tax agencies. Average effective tax rates are an excellent tool to compare the overall tax burden of counties. To get the average effective tax rate, divide the average annual property tax by the median house value. The table below displays the average effective tax rates for each county in Minnesota.
| County | Median Home Value | Median Annual Property Tax Payment | Average Effective Property Tax Rate |
| Aitkin County | $183,400 | $1,094 | 0.60% |
| Anoka County | $244,500 | $2,871 | 1.17% |
| Becker County | $202,600 | $1,617 | 0.80% |
| Beltrami County | $167,000 | $1,756 | 1.05% |
| Benton County | $187,300 | $2,187 | 1.17% |
| Big Stone County | $108,900 | $932 | 0.86% |
| Blue Earth County | $194,800 | $2,204 | 1.13% |
| Brown County | $144,000 | $1,588 | 1.10% |
| Carlton County | $179,400 | $2,242 | 1.25% |
| Carver County | $333,400 | $4,026 | 1.21% |
| Cass County | $200,700 | $1,276 | 0.64% |
| Chippewa County | $118,100 | $1,231 | 1.04% |
| Chisago County | $244,600 | $3,021 | 1.24% |
| Clay County | $205,400 | $2,669 | 1.30% |
| Clearwater County | $139,500 | $1,134 | 0.81% |
| Cook County | $251,900 | $1,997 | 0.79% |
| Cottonwood County | $106,900 | $1,330 | 1.24% |
| Crow Wing County | $208,900 | $1,939 | 0.93% |
| Dakota County | $280,300 | $3,271 | 1.17% |
| Dodge County | $197,100 | $2,345 | 1.19% |
| Douglas County | $226,500 | $2,006 | 0.89% |
| Faribault County | $94,100 | $1,003 | 1.07% |
| Fillmore County | $159,500 | $1,531 | 0.96% |
| Freeborn County | $121,600 | $1,358 | 1.12% |
| Goodhue County | $212,800 | $2,352 | 1.11% |
| Grant County | $129,400 | $1,369 | 1.06% |
| Hennepin County | $292,100 | $3,856 | 1.32% |
| Houston County | $177,000 | $2,038 | 1.15% |
| Hubbard County | $208,200 | $1,673 | 0.80% |
| Isanti County | $214,400 | $2,443 | 1.14% |
| Itasca County | $163,600 | $1,365 | 0.83% |
| Jackson County | $122,300 | $1,185 | 0.97% |
| Kanabec County | $168,900 | $1,934 | 1.15% |
| Kandiyohi County | $178,000 | $1,814 | 1.02% |
| Kittson County | $96,300 | $950 | 0.99% |
| Koochiching County | $115,500 | $916 | 0.79% |
| Lac qui Parle County | $97,500 | $986 | 1.01% |
| Lake County | $174,300 | $1,357 | 0.78% |
| Lake of the Woods County | $179,500 | $1,187 | 0.66% |
| Le Sueur County | $226,400 | $2,495 | 1.10% |
| Lincoln County | $107,800 | $1,258 | 1.17% |
| Lyon County | $152,700 | $1,478 | 0.97% |
| McLeod County | $171,200 | $2,042 | 1.19% |
| Mahnomen County | $111,400 | $1,192 | 1.07% |
| Marshall County | $121,000 | $1,066 | 0.88% |
| Martin County | $126,400 | $1,299 | 1.03% |
| Meeker County | $175,600 | $1,706 | 0.97% |
| Mille Lacs County | $170,500 | $1,955 | 1.15% |
| Morrison County | $178,100 | $1,703 | 0.96% |
| Mower County | $130,800 | $1,281 | 0.98% |
| Murray County | $132,500 | $1,044 | 0.79% |
| Nicollet County | $205,000 | $2,390 | 1.17% |
| Nobles County | $130,400 | $1,316 | 1.01% |
| Norman County | $107,600 | $1,093 | 1.02% |
| Olmsted County | $233,100 | $3,131 | 1.34% |
| Otter Tail County | $203,800 | $1,643 | 0.81% |
| Pennington County | $163,400 | $1,813 | 1.11% |
| Pine County | $170,700 | $1,554 | 0.91% |
| Pipestone County | $101,300 | $929 | 0.92% |
| Polk County | $169,100 | $1,742 | 1.03% |
| Pope County | $185,800 | $1,655 | 0.89% |
| Ramsey County | $239,000 | $3,505 | 1.47% |
| Red Lake County | $123,000 | $1,301 | 1.06% |
| Redwood County | $114,800 | $1,166 | 1.02% |
| Renville County | $112,400 | $1,243 | 1.11% |
| Rice County | $232,800 | $2,715 | 1.17% |
| Rock County | $160,700 | $1,171 | 0.73% |
| Roseau County | $140,800 | $1,496 | 1.06% |
| St. Louis County | $161,100 | $1,905 | 1.18% |
| Scott County | $317,500 | $3,769 | 1.19% |
| Sherburne County | $244,700 | $3,014 | 1.23% |
| Sibley County | $166,100 | $1,848 | 1.11% |
| Stearns County | $193,500 | $2,411 | 1.25% |
| Steele County | $173,400 | $2,233 | 1.29% |
| Stevens County | $161,000 | $1,487 | 0.92% |
| Swift County | $113,000 | $1,053 | 0.93% |
| Todd County | $151,800 | $1,453 | 0.96% |
| Traverse County | $85,700 | $858 | 1.00% |
| Wabasha County | $189,300 | $2,199 | 1.16% |
| Wadena County | $135,000 | $1,430 | 1.06% |
| Waseca County | $162,000 | $1,902 | 1.17% |
| Washington County | $301,000 | $3,722 | 1.24% |
| Watonwan County | $98,600 | $1,072 | 1.09% |
| Wilkin County | $138,300 | $1,144 | 0.83% |
| Winona County | $173,200 | $1,744 | 1.01% |
| Wright County | $250,800 | $2,959 | 1.18% |
| Yellow Medicine County | $117,900 | $1,329 | 1.13% |
Source: SmartAsset
Hennepin County
Hennepin County accounts for more than 20% of Minnesota’s population. Hennepin County has some of the state’s highest tax rates, which are slightly higher than the national average. Hennepin County’s average effective tax rate is 1.32%, the highest in Minnesota.
If you have any doubts about how property taxes affect your entire financial planning, an XOA TAX financial counselor in Minnesota can assist you.
Ramsey County
Ramsey County’s property taxes are comparable to those of neighboring Hennepin County, located adjacent to the Mississippi River. Ramsey County’s median effective tax rate is 1.47 percent. The total tax rate in Ramsey varies per city.
Dakota County
Dakota County, situated south of Minneapolis, has slightly cheaper property taxes than the other Minneapolis-area counties. The county’s median effective tax rate of 1.17% makes it a far cheaper alternative to Hennepin & Ramsey counties.
Anoka County
Anoka County homeowners pay an average annual property tax of $2,871. That’s slightly lower than the state average and the national average of $2,795.
Washington County
Property taxes in Washington county are approximately average for the state. Washington County’s median effective property tax rate is 1.07%, while the state average is 1.02%. At 1.24%, a homeowner with a $250,000 home would pay $3,100 in property taxes each year.
St. Louis County
St. Louis County is located in northern Minnesota, stretching from Duluth all the way to the Canadian border. Its property taxes are among the lowest in Minnesota. The county’s median effective property tax rate is 1.18%. The average yearly property tax payment in St. Louis County is $1,905.
Where to Go for Minnesota Property Tax Help
Get your tax done right with your own tax advisors! From sales tax to the complex Minnesota property tax, we can handle it all and relieve your burden. Assess your tax situation today with an expert for free.
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