Cottonwood, Minnesota Property Taxes
The median property tax rate in Cottonwood, MN is 1.24%, considerably higher than both the national median of 0.99% and the Minnesota state median of 1.11%. With the median home value in Cottonwood, the typical annual property tax bill reaches $1,819, which is below the national median of $2,690. Property taxes in Cottonwood 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 Cottonwood'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 Cottonwood 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
Cottonwood, Minnesota Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.24%
Estimate Property Tax Bill
$2,040
Ownwell’s Cottonwood Property Tax Bill Calculator empowers homeowners, real estate investors, and potential buyers to estimate their annual property taxes in Cottonwood with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Cottonwood to provide an accurate estimate of your property tax bill. This valuable tool offers a clear understanding of potential tax liabilities. For those interested in neighborhood-level trends, more localized information is available below. Your property’s assessed value is determined by the county for tax calculations, considering any applicable exemptions.
Property Tax Rates Across Cottonwood, Minnesota
Property taxes in Cottonwood, Minnesota, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Cottonwood is 1.24%, higher than both the Minnesota state median and the U.S. national median of 0.99%. Local government entities within Cottonwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Cottonwood 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 Cottonwood's effective property tax rate to other counties in Minnesota and the national median. For comparison, the 56229 zip code has the highest median property tax rate of 1.24%, while the 56229 zip code also has the lowest median tax rate of 1.24%. Understanding how these cities compare with Cottonwood provides valuable insights into the varying tax landscape across Lyon County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Cottonwood Tax Rate
1.24%
Average Lyon County Tax Rate
1.21%
Average Minnesota Tax Rate
1.11%
Average United States Tax Rate
0.99%
Property Tax Rates Across Cottonwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56229 | 0.70% | 1.02% | 1.24% | 1.41% | 1.75% |
Source: Ownwell
Property Tax Assessment Values Across Cottonwood, Minnesota
In Cottonwood, 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 Lyon 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 Cottonwood, 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 Cottonwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The median home price in Cottonwood is $164,500, with tax bills ranging from $880 at the 25th percentile to $4,815 at the 90th percentile. The highest and lowest median tax bills, both at $1,819, are in the 56229 zip code.
Average Cottonwood Assessed Value
$164,500
Average Lyon County Assessed Value
$158,500
Average Minnesota Assessed Value
$290,400
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Cottonwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56229 | $11,300 | $87,100 | $164,500 | $261,300 | $375,300 |
Source: Ownwell
Property Tax Bills Across Cottonwood, Minnesota
In Cottonwood, located in Lyon County, MN, property tax bills are calculated based on the assessed value of a home. The assessed value is determined by the county assessor and reflects the market value of the property. Once the market value is established, the local tax rate is applied to calculate the annual property tax bill. Several factors influence the tax bill, including property size, location, and any applicable exemptions or deductions. For example, the median home price in Cottonwood is $164,500. At the 25th percentile, homeowners might pay around $880 annually, while those at the 75th percentile could see bills as high as $2,922. The highest median tax bill in the area stands at $1,819, which is notably higher than the national median property tax rate of 0.99%. These property taxes are crucial for funding local services such as schools, public safety, and infrastructure, directly impacting homeowners by ensuring community amenities and services are well-maintained.
Average Cottonwood Tax Bill
$1,819
Average Lyon County Tax Bill
$1,794
Average Minnesota Tax Bill
$3,182
Average United States Tax Bill
$2,690
Property Tax Bills Across Cottonwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56229 | $225 | $880 | $1,819 | $2,922 | $4,815 |
Source: Ownwell