What is the average property tax rate in Minnesota?

Minnesota's average effective property tax rate is about 1.05% of a home's market value, close to the national average. Actual rates vary by county and city because they depend on local levies and mill rates; Hennepin and Ramsey counties tend to run higher than rural counties. This estimator defaults to roughly 1.05% and lets you override it for your area.

What is the Minnesota homestead market value exclusion?

Minnesota reduces the taxable value of an owner-occupied primary residence through the homestead market value exclusion. For homes valued at $76,000 or less the exclusion is 40% of value (up to $30,400); above $76,000 the exclusion phases down and ends around $413,800 of value. Excluding part of the value lowers the taxable base and therefore your tax bill.

How is Minnesota property tax actually calculated?

Minnesota first applies a class rate to taxable market value to get tax capacity, then local levies and mill rates determine the tax. This estimator uses the simpler effective-rate approach — taxable value after the homestead exclusion multiplied by an effective percentage rate — which closely approximates the bottom-line bill without requiring every local levy.

Do non-homestead and commercial properties pay more?

Yes. Minnesota's class-rate system taxes non-homestead residential, apartment, and commercial property at higher class rates than owner-occupied homes, and they do not receive the homestead exclusion. If you uncheck homestead in this tool, it removes the exclusion, which raises the estimated tax to reflect a non-homestead property.

Are there refunds that lower my Minnesota property tax?

Yes. Minnesota offers a Homestead Credit Refund (circuit breaker) for homeowners whose property taxes are high relative to income, plus a special refund for large year-over-year increases. These are claimed on Form M1PR after the fact and are not reflected in this estimate, so your net cost could be lower than the gross tax shown here.

Minnesota Property Tax Estimator 2025 — ~1.05% Effective Rate

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This estimator approximates your annual Minnesota property tax from a home’s market value using the state’s ~1.05% average effective rate and the homestead market value exclusion for owner-occupied homes. Minnesota’s true system runs on class rates, tax capacity, and local levies, but the effective-rate method closely tracks the final bill and is far easier to use.

How it works

For a homestead property, the tool first removes the market value exclusion, then applies the effective rate:

Exclusion = 40% of value up to $76,000, phasing out to $0 by ~$413,800 Taxable value = Market value − Exclusion Annual tax = Taxable value × Effective rate

For non-homestead property, no exclusion applies and the full market value is taxed at the effective rate (in reality at a higher class rate).

Minnesota property tax notes

Minnesota’s average effective rate is about 1.05%, but it varies widely by county — metro counties like Hennepin and Ramsey are typically higher than rural counties. The homestead market value exclusion meaningfully lowers tax on owner-occupied homes: a $200,000 homestead gets an exclusion of roughly $19,000, shrinking the taxable base.

After the bill is set, homeowners may also claim the Homestead Credit Refund (a circuit-breaker) on Form M1PR, which is not reflected here.

Worked example

A $300,000 homestead at a 1.05% effective rate:

Exclusion at $300,000 ≈ $30,400 − 9% × ($300,000 − $76,000) ≈ $10,240
Taxable value = $300,000 − $10,240 = $289,760
Annual tax = $289,760 × 1.05% ≈ $3,042, about $254/month

Note: This is an estimate. Real Minnesota property tax depends on class rates and local levies; verify with your county assessor and check eligibility for the M1PR refund at revenue.state.mn.us.