Detroit Lakes, Minnesota Property Taxes
The median property tax rate in Detroit Lakes, MN is 0.71%, which is notably lower than both the national median of 0.99% and the Minnesota state median of 1.11%. With a median home value of $404,400 in Detroit Lakes, the typical annual property tax bill amounts to $2,829, slightly surpassing the national median of $2,690. Property taxes here are determined based on the tax assessed value, which is often lower than the market value due to various exemptions, such as those for primary residences and agricultural properties. Understanding Detroit Lakes' property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Detroit Lakes or another part of Otter Tail County, grasping the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Detroit Lakes, Minnesota Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.71%
Estimate Property Tax Bill
$2,871
Ownwell’s Detroit Lakes Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Detroit Lakes with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Detroit Lakes 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 Detroit Lakes, Minnesota
Property taxes in Detroit Lakes, Minnesota, play a crucial role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Detroit Lakes is 0.71%, which is lower than both the Minnesota state median and the U.S. national median of 0.99%. Local government entities within Detroit Lakes set these rates annually, and they can vary significantly across different neighborhoods. Each year, Detroit Lakes 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 Detroit Lakes' effective property tax rate to other counties in Minnesota and the national median. For comparison, the 56501 zip code has the highest median property tax rate of 0.71%, while the same zip code also has the lowest median tax rate of 0.71%. Understanding how these cities compare with Detroit Lakes provides valuable insights into the varying tax landscape across Otter Tail County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Detroit Lakes Tax Rate
0.71%
Average Otter Tail County Tax Rate
0.74%
Average Minnesota Tax Rate
1.11%
Average United States Tax Rate
0.99%
Property Tax Rates Across Detroit Lakes, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56501 | 0.62% | 0.66% | 0.71% | 0.76% | 0.80% |
Source: Ownwell
Property Tax Assessment Values Across Detroit Lakes, Minnesota
In Detroit Lakes, 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 Otter Tail County Assessor 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 Detroit Lakes, 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 Detroit Lakes helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. In Detroit Lakes, the median home price is $404,400, with tax bills ranging from $757 at the 25th percentile to $7,992 at the 90th percentile. The highest and lowest median tax bills both occur in the 56501 zip code, standing at $2,829.
Property Tax Assessment Values Across Detroit Lakes, Minnesota
Source: Ownwell
$143,950
$274,175
$404,400
Average Detroit Lakes Assessed Value
$404,400
Average Otter Tail County Assessed Value
$204,500
Average Minnesota Assessed Value
$290,400
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Detroit Lakes, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56501 | $33,220 | $113,300 | $404,400 | $713,850 | $1,035,020 |
Source: Ownwell
Property Tax Bills Across Detroit Lakes, Minnesota
In Detroit Lakes, MN, property tax bills are determined based on the assessed value of a property and the local tax rate. The assessed value is an estimate of the property's worth, which is then multiplied by the local tax rate to calculate the tax bill. For example, in Otter Tail County, where Detroit Lakes is located, the median home price is $404,400. Factors such as property size, location, and improvements can influence this assessed value. Homeowners in Detroit Lakes can expect their tax bills to vary significantly. The 25th percentile tax bill is around $757, while the 75th percentile tax bill reaches up to $5,400. At the 90th percentile, tax bills can be as high as $7,992. The median tax bill in the 56501 zip code is $2,829, which is substantially higher than the national median property tax rate of 0.99%. These property tax bills can significantly impact homeowners, influencing their overall housing costs and financial planning.
Average Detroit Lakes Tax Bill
$2,829
Average Otter Tail County Tax Bill
$1,674
Average Minnesota Tax Bill
$3,182
Average United States Tax Bill
$2,690
Property Tax Bills Across Detroit Lakes, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56501 | $213 | $757 | $2,829 | $5,400 | $7,992 |
Source: Ownwell