Watertown, Minnesota Property Taxes
The median property tax rate in Watertown, MN is 0.90%, which is slightly below both the national median of 0.99% and the Minnesota state median of 1.11%. With a median home value of $571,050 in Watertown, the typical annual property tax bill reaches $4,704, significantly higher than the national median of $2,690. Property taxes in Watertown are calculated based on the tax assessed value, which generally falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Watertown's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Watertown or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Watertown, Minnesota Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.9%
Estimate Property Tax Bill
$5,139
Ownwell’s Watertown Property Tax Bill Calculator assists homeowners, real estate investors, and potential buyers in estimating their annual property taxes in Watertown with just two data points. By entering your property's estimated assessed value, the calculator uses the median tax rate in Watertown to estimate your property tax bill. This valuable tool helps you understand potential tax liabilities. For more detailed trends at a neighborhood level, scroll down to access localized information. Your property’s assessed value is the value assigned by Wright County for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Watertown, Minnesota
Property taxes in Watertown, Minnesota, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Watertown is 0.90%, slightly below the U.S. national median of 0.99%. Local government entities within Watertown set these rates annually, and they can vary across different neighborhoods. Each year, Watertown estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Watertown's effective property tax rate to other areas in Minnesota and the national median. For comparison, the zip code 55388 has the highest median property tax rate of 0.90%, while the lowest median tax rate is also 0.90%, both within the same zip code. Understanding how these figures compare with Watertown provides valuable insights into the varying tax landscape across Wright County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Watertown Tax Rate
0.90%
Average Wright County Tax Rate
1.04%
Average Minnesota Tax Rate
1.11%
Average United States Tax Rate
0.99%
Property Tax Rates Across Watertown, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 55388 | 0.51% | 0.77% | 0.90% | 0.94% | 0.97% |
Source: Ownwell
Property Tax Assessment Values Across Watertown, Minnesota
In Watertown, Minnesota, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Wright County Appraisal District for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Watertown, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Watertown helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code 55388 has the highest and lowest median tax bill at $4,704.
Average Watertown Assessed Value
$571,050
Average Wright County Assessed Value
$352,100
Average Minnesota Assessed Value
$290,400
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Watertown, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 55388 | $354,280 | $441,825 | $571,050 | $728,600 | $985,630 |
Source: Ownwell
Property Tax Bills Across Watertown, Minnesota
Property tax bills in Watertown, located in Wright County, MN, are determined based on the assessed value of a property, which is distinct from its market value. The assessed value is calculated by local assessors who evaluate the property’s characteristics and current market conditions. Once the assessed value is established, the local tax rate is applied to determine the annual tax bill. Several factors influence the assessed value, including property size, location, and any improvements made. For example, the median home price in Watertown is $571,050, leading to varying tax bills. Homeowners in the 25th percentile might see tax bills around $3,844, while those in the 75th percentile may pay about $5,609. At the 90th percentile, tax bills can reach up to $6,724. These property tax bills significantly impact homeowners, as they contribute to local public services such as schools, infrastructure, and emergency services. Compared to the national median property tax rate of 0.99%, Watertown's property tax rates reflect the city's specific needs and property values.
Average Watertown Tax Bill
$4,704
Average Wright County Tax Bill
$3,554
Average Minnesota Tax Bill
$3,182
Average United States Tax Bill
$2,690
Property Tax Bills Across Watertown, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 55388 | $3,005 | $3,844 | $4,704 | $5,609 | $6,724 |
Source: Ownwell