Property Taxes in Minnesota

Property taxes are levied by many jurisdictions in the state of Minnesota. The primary recipients of property taxes (in approximate order of magnitude) are the school districts, counties, and cities. Other taxing jurisdictions have minor levies to fund the Metropolitan Council, various watershed districts, and some other minor functions.

Taxes are levied on two different bases: tax capacity (TC) and estimated market value (EMV). Estimated market value is the easier of the concepts to understand. It is merely the total Assessor’s market value for each taxable piece of property in a jurisdiction.

For EMV tax levies, every property pays at the same rate based on property value.

Tax Capacity

The tax capacity is calculated by taking the EMV and multiplying it by a statutory formula based on the classification of the property and its value. The categories are numerous, but the primary ones are agricultural, homesteaded residential, non-homesteaded residential, apartments, and commercial-industrial.

Each of the categories has a different percentage rate that generally increases in the order presented. All of these calculated values are then totaled and the tax levy is determined by dividing the total tax levy by the total tax capacity. Each property is then taxed a proportional share based on their tax capacity.

The effect of this tax basis is that apartments and commercial-industrial properties shoulder a greater property tax burden than a straight percentage of their value would indicate.

Related Resources

To determine the amount of tax on your property, you may visit the appropriate county website and look up your tax information at:
To appeal a proposed property assessment, visit out Board of Appeal and Equalization web page.