Minnesota Property Tax Calculator

Minnesota Property Taxes

In Minnesota, taxes on real estate are an important source of revenue for schools, cities and counties. They also serve to fund special local projects like libraries and parks. Property tax rates in Minnesota are close to, but a bit higher than, the national average. More specifically, the state has an effective tax rate of 1.02%, while the U.S. rate is 0.89%.

If you’re thinking about buying a home anywhere in Minnesota or are looking to refinance your current home, check out our mortgage guide for more information on using mortgages for purchasing and refinancing homes in Minnesota. Below, we will dive into the most important Minnesota property tax rules and take a look at rates across the state.

A financial advisor can help you understand how homeownership fits into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

How Minnesota Property Taxes Work

Wondering how your property taxes in Minnesota are calculated? We’re here to help. There are two types of property taxes in Minnesota: levies based on net tax capacity and market value levies.

Let’s look at levies based on net tax capacity first. To calculate net tax capacity, you first subtract any market value exclusions from your home’s market value. The most common exclusion is the homestead exclusion. The homestead exclusion is available for owner-occupied primary residences. Homes with a market value of $517,200 or greater in 2025 receive no homestead exclusion.

Once exclusions have been subtracted, you multiply the remaining taxable market value by the home’s class rate to get its net tax capacity. This is the value taxes are applied to. The class rate varies depending on the type of property. For residential homesteads, the rate is 1% on the first $500,000 in market value and 1.25% on everything above $500,000. So if your home is worth $400,000, the net tax capacity is $4,000.

Local taxes collected to support ongoing government functions (and not temporary projects) apply to that net tax capacity. Continuing with the above example, if your total local rate is 90%, your taxes from this type of tax would be $3,600.

The second type of tax is a market value levy. These taxes are typically voter-approved and they apply directly to your estimated market value. With the above $400,000 home and a market value tax rate of 0.10%, your additional tax would be $400. Combined with the above $3,600 in taxes, that would bring your net tax to $4,000.

Minnesota Tax Rates

As the above example demonstrates, homes in Minnesota face different types of tax rates from multiple different tax authorities. A good way to compare the overall tax burden between counties is to look at average effective tax rates. The effective tax rate is calculated by taking the median annual property tax as a percentage of the median home value. The table below shows effective tax rates for a cross section of counties in Minnesota.

Want to learn more about your mortgage payments? Check out our mortgage calculator.

Hennepin County

Hennepin County is home to the city of Minneapolis and contains over 20% of the population of Minnesota. Tax rates in Hennepin County are among the highest in the state and somewhat higher than the national average. The effective tax rate in Hennepin County is 1.17%, one of the state's highest.

If you have questions about how property taxes can affect your overall financial plans, a financial advisor in Minneapolis can help you out.

Ramsey County

Property taxes in Ramsey County are slightly higher than those in neighboring Hennepin County, which sits just across the Mississippi River. The effective tax rate in Ramsey County is 1.27%. Total tax rates in Ramsey vary by city. 

Dakota County

Located south of Minneapolis, Dakota County has property taxes that are somewhat lower than those in the other counties of the Minneapolis region. The county’s effective tax rate of 0.99% tends to make it a much cheaper alternative to both Hennepin and Ramsey Counties. The median property tax bill there is $3,842 per year.

Anoka County

The median annual property taxes paid by a homeowner in Anoka County are $3,396. That's a little below the state median ($3,501), but slightly higher than the United States ($3,211).

Washington County

The effective property tax rate in this eastern Minnesota county is 1.01%. The median home value in Washington County is $385,100, meaning the typical homeowner pays $3,670 per year in property taxes. 

St. Louis County

Located in northeastern Minnesota, St. Louis County stretches from the city of Duluth north to the Canadian border. The county has an effective property tax rate of 0.99%. The median annual property tax payment is $2,435 in St. Louis County, thanks to a median home value of $246,400.

Stearns County

Stearns County is located in central Minnesota and contains the city of St. Cloud. The county’s effective property tax rate is 1.00%. Annual property taxes due on a home worth $291,100 (the county median) would be $2,908.

Olmstead County

Thinking about buying a house in Olmstead County? Homeowners in Olmstead County, where Rochester is located, face an effective property tax rate of 1.09%. That rate comes in above both national and statewide rates.

Scott County

The median annual property tax paid by homeowners in Scott County is $4,195, which ranks as one of the higher annual tax bills in the state. That is in part due to the county’s high home values, however. The median home value in Scott County is $430,500.

Wright County

Wright County is located between Minneapolis and St. Cloud. The effective tax rate in Wright County is 0.95%. A homeowner paying that rate would owe $3,670 on a home worth $385,100 (the median home value).