Guides / Property Taxes / Minnesota

Property Taxes in Minnesota

Effective Rate

Minnesota's average effective property tax rate is right around 1.0%–1.02% of assessed home value (sources cluster between 1.00% and 1.05%), which is modestly above the roughly 0.99% national average. This places Minnesota in the moderate-tax range nationally — the Tax Foundation's 2026 State Tax Competitiveness Index ranks it about 20th-23rd of 50 states for property taxes — and notably lower than neighboring Wisconsin (~1.73%) and Illinois (~2.27%). Rates vary widely by county: low-tax rural Aitkin County sits around 0.57%, while Ramsey County (St. Paul) tops the state near 1.24%, more than double Aitkin's rate. Statewide, preliminary 2026 property tax levies are projected to rise by about $948 million (6.9%) over 2025, continuing a multi-year trend of rising bills.

Example: Estimates for the typical Minnesota homeowner's annual property tax bill range from about $3,340 (Department of Revenue-linked reporting on the median payment statewide) to about $3,501 (SmartAsset's typical-homeowner estimate) — both above the U.S. median. A useful rule of thumb from the state's own homestead classification: owner-occupied homes are taxed at a 1% class rate on the first $500,000 of market value and 1.25% on value above $500,000, before local levies and any homestead market value exclusion are applied.

Exemptions

Homestead Market Value Exclusion
Amount: Up to $38,000 taxable value reduction
Homes valued at $95,000 or less get a 40% exclusion (max $38,000 off taxable market value). The exclusion shrinks as value rises and phases out completely at $517,200 market value. Applies automatically to owner-occupied homesteads (effective for taxes payable 2026 figures).
Homeowner's Homestead Credit Refund (regular, 'circuit breaker')
Amount: Refund amount varies by income/tax burden; 2025 household income must be under $142,490-$143,140 to qualify
State refund (Form M1PR) for homeowners whose property tax is high relative to household income; a 2026 omnibus tax bill included a one-time boost to the refund percentage (to 14.88%), costing the state General Fund about $125 million.
Special Homestead Credit Refund
Amount: Up to $1,000
Available regardless of income if a homeowner's property tax increased significantly year-over-year (typically more than 12% and at least $100); can be claimed alongside the regular refund.

Figures vary somewhat by source/methodology (Department of Revenue vs. SmartAsset vs. Tax Foundation vs. county assessors), so treat the ~1.0%-1.05% effective rate and ~$3,340-$3,501 median bill as a reasonable current range rather than one exact number; always confirm against the specific county assessor and the current-year Form M1PR instructions since 2026 levies are rising statewide (~6.9% preliminary increase) and refund thresholds/percentages were just adjusted by the legislature.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Down Payment Assistance in MinnesotaTransfer Tax & Closing Costs in MinnesotaBuyer-Agent Agreements in MinnesotaSeller Disclosure Laws in MinnesotaFind Agents in MinnesotaHome Affordability Calculator