Minnesota Property Tax

Effective Property Tax Rate

104.22%

Median Annual Tax

$3,184

Median Home Value

$305,500

Minnesota Property Tax Overview

Based on the most recent American Community Survey (ACS) 5‑year estimates (2026).

Key Statistics

Metric	Value
Median home value (ACS 2023)	$305,500
Effective Minnesota property tax rate	1.04 %
Median annual property tax (based on the median home value)	$3,184
National average effective property tax rate	0.97 %
Minnesota’s position relative to the nation	7.7 % higher than the national average; ranked 33 out of 52 states and territories

Note: The “effective property tax rate” is calculated by dividing the median annual property tax by the median home value.

Example Property Tax Bills

Using the statewide effective rate of 1.04 %, the estimated annual property tax on representative home values is:

Home Value	Estimated Annual Property Tax
$250,000	$2,606
$500,000	$5,211

These figures are illustrative; actual taxes may differ because local jurisdictions (counties, cities, school districts, and special districts) set their own millage rates.

Variation by County and Local Jurisdictions

County differences: Minnesota has 87 counties, each with its own property tax base and levy. Millage rates can vary widely between rural and urban counties.
Municipal and school districts: Cities, towns, and school districts add additional millage components, further influencing the total tax bill for a specific property.
Special districts: Fire, water, and transit districts may also levy property taxes, contributing to the overall amount owed.

Because of these layers, the Minnesota property tax rate experienced by a homeowner can be higher or lower than the statewide average of 1.04 %.

Comparison to the National Average

Effective rate: Minnesota’s 1.04 % effective property tax rate is 7.7 % above the national average of 0.97 %.
Ranking: When compared with all U.S. states and territories, Minnesota ranks 33rd in terms of effective property tax burden, placing it near the middle of the national distribution.

Considerations for Specific Property Owners

Retirees

Property tax relief programs: Minnesota offers several state‑level relief options for seniors, such as the Senior Homestead Property Tax Refund and Property Tax Deferral for qualified homeowners.
Impact on affordability: While the statewide effective rate is higher than the national average, the availability of these programs can reduce the net tax burden for eligible retirees.

Landlords

Tax treatment: Rental properties are taxed in the same manner as owner‑occupied homes; the Minnesota property tax rate applies to the assessed value of the rental unit.
Deductibility: Property taxes paid on rental real estate are generally deductible as an expense on federal income tax returns, which can offset the cash outflow for landlords.

Both retirees and landlords should verify the specific millage rates for the county and municipality where the property is located, as local variations can affect overall tax liability.

Frequently Asked Questions

Q1: What is the average property tax bill for a homeowner in Minnesota?
A: Based on the median home value of $305,500 and the statewide effective rate of 1.04 %, the median annual property tax is approximately $3,184.

Q2: How does Minnesota’s property tax rate compare to the national average?
A: Minnesota’s effective property tax rate of 1.04 % is about 7.7 % higher than the national average of 0.97 %, placing the state near the middle of the national rankings (33rd of 52).

Q3: Do property tax rates vary within Minnesota?
A: Yes. The total tax bill depends on the combined millage rates of the county, city or town, school district, and any special districts. Consequently, property tax rates can differ substantially from one locality to another.

All figures are derived from the U.S. Census Bureau's American Community Survey (ACS) 5‑year estimates for 2023.

Neighboring States