Dakota County, MN Property Tax Calculator

Dakota County Property Tax Rates

Dakota County residents pay an average of $3,271 in property taxes annually. This amount is a bit higher than the median property tax payment of $2,915 in Minnesota itself. Minnesota’s overall state average effective rate is 1.02%. 

The median home value in Dakota County is $280,300. This is slightly lower than the state’s median home value of $285,400, though almost as high as the national value of $281,400.

The revenue that results from residents’ annual property tax payments goes toward public funding for the state, Dakota County and its local jurisdictions too.

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Paying Your Dakota County Property Taxes

In Dakota County, you’ll pay your annual property taxes in the form of two installments. In most cases, these installments will be due by May 15 and October 15 of each year.

In the case of manufactured home properties, you’ll need to pay your installments by August 31 and November 16. Agricultural property due dates are May 15 and November 16.

Dakota County residents have a range of payment methods to choose from when taking care of their tax bills. They can pay online or enroll in Dakota County's free automatic payment system at the County website. Phone payments are possible (although convenience fees apply), as well paying via mail. Residents can also use one of Dakota County’s three drop boxes if they don’t mind not getting a receipt.

How Your Dakota County Property Tax Works

Property taxes are calculated in two different ways. The county levies property taxes based on both market value and net tax capacity. In the case of the market value-based portion of your property taxes, your home’s market value will directly determine the amount you pay. This amount will add together with your net tax capacity-based total to result in your net tax.

The calculation for a property’s net tax capacity is a little more complicated. This is based on your home’s market value after any market value exclusions have been subtracted. The Homestead Value Exclusion is an example of a common exclusion that would be subtracted when your net tax capacity is calculated.

If your home is valued at $76,000 or under, your Homestead Market Value Exclusion is 40% of the home’s market value. From home values of $76,000 to $413,800, your Homestead Market Value Exclusion would be $30,400 minus 9% of the home’s value over $76,000. If your home is worth more than $413,000, your property doesn’t qualify for the Homestead Exclusion.

To finish calculating your net tax capacity, the resulting amount after exclusions are subtracted is multiplied by the property’s class rate. In the case of a residential homestead, this rate will be 1% for the first $500,000 of the home’s value and a rate of 1.25% for any leftover value beyond $500,000.

What sets market value? Your home’s market value is an estimate of what the property would sell for in current market conditions in Dakota County. Assessors look at market value over the course of the year to set market value every January.

The process of determining property market values boils down to a few key steps. First, assessors have to take a look at the property in question. Properties with a recent building permit are subject to an assessment for the following January. Otherwise, the property will need an updated assessment every five years at minimum.

When assessors take a look at the property, they collect data to be used in calculating market value. This often includes measures of the property’s age, condition, size and other added features like finished basements or fireplaces. Assessors combine this data with analysis of surrounding home sales to reach an appropriate market value.

Your Dakota County property tax rates can vary based on how the Assessor’s Office classifies your property. Whether or not your property is considered residential homestead, residential non-homestead commercial or agricultural can all lead to varying property taxes rates. Different classifications are subject to different percentages of the property’s market value.

State law requires that assessors do regular assessments for properties in Dakota County to account for changing market conditions and other factors. Changes like land clearing, nearby street or infrastructure improvements or recent remodeling can also give property market values a boost.

The Minnesota State Board of Assessors sets requirements for appraisers working with the Assessor’s Office to make sure their training, experience and licenses are consistent and in good standing.