Deerwood, Minnesota Property Taxes
The median property tax rate in Deerwood, MN is 0.50%, considerably lower than both the national median of 0.99% and the Minnesota state median of 1.11%. With the median home value in Deerwood at $398,800, the typical annual property tax bill reaches $1,826, which is significantly below the national median of $2,690. Property taxes in Deerwood are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Deerwood'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 Deerwood 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
Deerwood, Minnesota Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.5%
Estimate Property Tax Bill
$1,994
Ownwell’s Deerwood Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Deerwood with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Deerwood to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Deerwood, Minnesota
Property taxes in Deerwood, Minnesota, are essential for funding crucial local services such as public schools, road maintenance, and emergency services. The median tax rate in Deerwood is 0.50%, which is lower than the U.S. national median of 0.99%. Local government entities within Deerwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Deerwood 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 Deerwood's effective property tax rate to other areas and the national median. For comparison, the zip code 56444 has both the highest and lowest median property tax rate in the area, set at 0.50%. Understanding how these cities compare with Deerwood provides valuable insights into the varying tax landscape across Aitkin County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Deerwood Tax Rate
0.50%
Average Aitkin County Tax Rate
0.51%
Average Minnesota Tax Rate
1.11%
Average United States Tax Rate
0.99%
Property Tax Rates Across Deerwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56444 | 0.41% | 0.49% | 0.50% | 0.51% | 0.53% |
Source: Ownwell
Property Tax Assessment Values Across Deerwood, Minnesota
Understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes in Deerwood, Minnesota. 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 Aitkin 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 Deerwood, 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 Deerwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code 56444 has both the highest and lowest median tax bill at $1,826, compared to the national median property tax rate of 0.99%.
Average Deerwood Assessed Value
$398,800
Average Aitkin County Assessed Value
$189,500
Average Minnesota Assessed Value
$290,400
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Deerwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56444 | $332,200 | $365,900 | $398,800 | $500,500 | $638,060 |
Source: Ownwell
Property Tax Bills Across Deerwood, Minnesota
In Deerwood, MN, property tax bills are calculated based on the assessed value of a home, which is determined by the local county assessor. This assessed value is then multiplied by the local tax rate to determine the annual property tax bill. For example, in Deerwood, the median home price is $398,800. The tax bills in this area vary significantly, with the 25th percentile tax bill at $1,762 and the 75th percentile tax bill at $2,528. The 90th percentile tax bill can reach up to $2,904. Several factors influence the tax bill, including the home's assessed value, local tax rates, and any applicable exemptions or deductions. Homeowners in Deerwood experience property tax rates that can be compared to the national median property tax rate of 0.99%. These taxes fund essential public services like schools, infrastructure, and emergency services, directly impacting the quality of life for residents. Understanding these factors helps homeowners anticipate their annual tax obligations and plan their finances accordingly.
Average Deerwood Tax Bill
$1,826
Average Aitkin County Tax Bill
$932
Average Minnesota Tax Bill
$3,182
Average United States Tax Bill
$2,690
Property Tax Bills Across Deerwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56444 | $1,422 | $1,762 | $1,826 | $2,528 | $2,904 |
Source: Ownwell