Tax Information

REAL ESTATE TAXES:

Minnesota real estate taxes are based on each property's tax capacity value that is calculated from the property's taxable market value (the value after all reductions, limitations, and deferrals have been subtracted from a property's estimated market value) and classification rate.  The tax capacity value is multiplied by the tax capacity rates as set by the school board, county board of commissioners, and city council, and if pertinent, any miscellaneous district boards.  When applicable, a state general property tax rate is applied to commercial/industrial and seasonal recreational residential properties.  A referendum market value tax is added to the property tax bill by multiplying the referendum market value by the market value rate.

For commercial/industrial property (one ownership parcel), the following formula is used to calculate the property's tax capacity value:  the first $150,000 of market value times 1.5% and the remaining market value times 2.00%.

For residential homesteaded property, the property's tax capacity value is calculated on the taxable market value:  the first $500,000 of taxable market value times 1.00% and over $500,000 of taxable market value times 1.25%.  The total tax on residential homesteaded property is also reduced by a homestead market value tax credit.  This credit is equal to 0.40% of the taxable market value with a maximum amount of $304, reduced by a credit phase-out equal to 0.09% of the taxable market value greater than $76,000 (that reduces it to $0 for taxable market value equal to or greater than $413,800).