Minnesota Property Tax Guide 2026

Minnesota property tax is administered at the county or municipal level, not by the state. Each parcel is assigned an assessed value by the local assessor, then multiplied by a millage rate to produce your annual bill. The statewide average effective rate is 1.11% of market value, but actual bills vary widely by county, school district, and special assessment district.

Assessed value is not always market value — many Minnesota jurisdictions use an assessment ratio (for example, 80% of fair market value) before applying the millage rate. Some states cap annual assessment growth (California's Prop 13 famously limits it to 2% per year), while others reassess annually at full market value. Confirm your county assessor's methodology before estimating future bills.

On a $400,000 home in Minnesota, the expected annual property tax bill is approximately $4,440, or about $370 per month escrowed into your mortgage payment.

Most Minnesota counties offer a homestead exemption that reduces taxable assessed value for owner-occupied primary residences. Additional relief is generally available for seniors (often age 65+), disabled homeowners, surviving spouses of first responders, and disabled veterans — sometimes as a flat dollar reduction, sometimes as a freeze on assessed value or millage.

Apply early. Many Minnesota exemptions are not automatic and must be filed by a specific date (often January 1 or March 1) the year you become eligible. Missing the deadline usually means waiting until the next tax year.

If you believe your Minnesota assessment is too high, you have the right to appeal — usually within 30–60 days of the assessment notice. The most successful appeals show recent comparable sales below your assessed value, or document physical defects (foundation, roof, flood damage) not reflected in the assessor's records.

Many Minnesota homeowners overpay because they never appeal. Even a 10% reduction on a $400,000 valuation saves roughly $444 per year — and the reduced base typically carries forward, so the savings compound annually.

Minnesota's 1.11% property tax has to be weighed against 7.85% effective state income tax, 8.05% combined sales tax, and any local income taxes. States with both significant property and income tax can produce surprisingly high total burdens for homeowners — run the numbers on your specific income, home value, and consumption.

For relocation comparisons, see our state-vs-state pages or the all-50-states hub linked below.