Underwood, Minnesota Property Taxes
The median property tax rate in Underwood, MN is 0.73%, which is notably lower than both the national median of 0.99% and the Minnesota state median of 1.11%. With the median home value in Underwood at $193,550, the typical annual property tax bill is $1,382, falling well below the national median of $2,690. Property taxes in Underwood are calculated based on the tax assessed value, often lower than the market value due to exemptions such as primary residence and agricultural exemptions. Understanding Underwood'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 Underwood or another part of Otter Tail County, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Underwood, Minnesota Property Tax Bill Calculator
$100,000
$2,500,000
$5,000,000
Average Tax Rate
1.11%
Estimate Property Tax Bill
$2,220
Ownwell’s Underwood Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Underwood with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Underwood 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 Underwood, Minnesota
Property taxes in Underwood, Minnesota, play a critical role in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Underwood is 0.73%, which is lower than the U.S. national median of 0.99%. Local government entities within Underwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Underwood 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. Understanding how these cities compare with Underwood 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 Underwood Tax Rate
0.73%
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 Underwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56586 | 0.53% | 0.62% | 0.73% | 0.82% | 0.95% |
Source: Ownwell
Property Tax Assessment Values Across Underwood, Minnesota
In Underwood, 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 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 Underwood, 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 Underwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the zip code 56586 in Otter Tail County has the highest median tax bill of $1,382.
Average Underwood Assessed Value
$193,550
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 Underwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56586 | $29,540 | $88,375 | $193,550 | $335,875 | $477,660 |
Source: Ownwell
Property Tax Bills Across Underwood, Minnesota
Property tax bills in Underwood, located in Otter Tail County, MN, are calculated based on the assessed value of a property and the local tax rate. The median home price in Underwood is $193,550. Homeowners can expect their tax bills to vary significantly, with the 25th percentile at $644 and the 75th percentile reaching $2,346. For those in the 90th percentile, tax bills can be as high as $3,220. The highest and lowest median tax bills in the area both stand at $1,382, specifically in the 56586 zip code. The assessed value of a property is determined by the county assessor, who evaluates the market value of the home. This assessed value is then multiplied by the local tax rate to calculate the annual property tax bill. These taxes fund essential local services like schools, public safety, and infrastructure. As a result, property taxes can significantly impact homeowners, affecting their overall housing costs and financial planning.
Average Underwood Tax Bill
$1,382
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 Underwood, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 56586 | $225 | $644 | $1,382 | $2,346 | $3,220 |
Source: Ownwell