Nelson, Minnesota Property Taxes
The median property tax rate in Nelson, MN is 0.80%, which is lower than both the national median of 0.99% and the Minnesota state median of 1.11%. With the median home value in Nelson at $230,600, the typical annual property tax bill amounts to $1,556, significantly less than the national median of $2,690. Property taxes in Nelson 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 Nelson'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 Nelson 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
Nelson, Minnesota Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.8%
Estimate Property Tax Bill
$1,845
Ownwell’s Nelson Property Tax Bill Calculator offers a straightforward way for homeowners, real estate investors, and potential buyers to estimate their annual property taxes in Nelson. By simply inputting your property's estimated assessed value, the calculator uses the median tax rate in Nelson to provide an estimate of your property tax bill. This valuable tool helps you gain a clear understanding of your potential tax liabilities. For those interested in more detailed trends at the neighborhood level, additional localized information is available below. Your property’s assessed value, determined by the county, is used for property tax calculations and takes into account any applicable exemptions.
Property Tax Rates Across Nelson, Minnesota
Property taxes in Nelson, Minnesota, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Nelson is 0.80%, which is lower than both the Minnesota state median and the U.S. national median of 0.99%. Local government entities within Nelson set these rates annually, and they can vary significantly across different neighborhoods. Each year, Nelson 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 Nelson's effective property tax rate to other counties in Minnesota and the national median. For comparison, the zip code 56355 has both the highest and lowest median property tax rate of 0.80%. Understanding how these cities compare with Nelson provides valuable insights into the varying tax landscape across Douglas County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Nelson Tax Rate
0.80%
Average Douglas County Tax Rate
0.86%
Average Minnesota Tax Rate
1.11%
Average United States Tax Rate
0.99%
Property Tax Rates Across Nelson, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56355 | 0.41% | 0.62% | 0.80% | 0.95% | 1.09% |
Source: Ownwell
Property Tax Assessment Values Across Nelson, Minnesota
In Nelson, 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 Douglas 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 Nelson, 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 Nelson helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The zip code 56355 has the highest and lowest median tax bill, both at $1,556.
Average Nelson Assessed Value
$230,600
Average Douglas County Assessed Value
$264,900
Average Minnesota Assessed Value
$290,400
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Nelson, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56355 | $22,520 | $98,900 | $230,600 | $361,000 | $571,940 |
Source: Ownwell
Property Tax Bills Across Nelson, Minnesota
In Nelson, located in Douglas County, MN, property tax bills are calculated based on the assessed value of a home. This assessed value is determined by local assessors who evaluate the property's market value and apply an assessment ratio to it. The property tax rate in Nelson is then applied to this assessed value to determine the annual tax bill. Factors such as property size, location, and any improvements made can influence the assessed value, and consequently, the tax bill. For homeowners in Nelson, the median home price is $230,600. Tax bills can vary significantly, with the 25th percentile of tax bills at $753 and the 75th percentile reaching $2,544. The 90th percentile tax bill is even higher at $3,501. These figures indicate that while some homeowners may have relatively modest tax bills, others could face substantial annual taxes. Comparatively, the national median property tax rate is 0.99%, highlighting that Nelson's property tax rates can be quite variable, impacting homeowners differently based on their property's assessed value.
Average Nelson Tax Bill
$1,556
Average Douglas County Tax Bill
$2,330
Average Minnesota Tax Bill
$3,182
Average United States Tax Bill
$2,690
Property Tax Bills Across Nelson, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56355 | $146 | $753 | $1,556 | $2,544 | $3,501 |
Source: Ownwell