Minneapolis, Minnesota Property Taxes
The median property tax rate in Minneapolis, MN is 1.56%, considerably higher than both the national median of 0.99% and the Minnesota state median of 1.11%. With the median home value in Minneapolis at $259,500, the typical annual property tax bill reaches $3,984, exceeding the national median of $2,690. Property taxes in Minneapolis 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 Minneapolis'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 Minneapolis 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
Minneapolis, Minnesota Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.56%
Estimate Property Tax Bill
$4,048
Ownwell’s Minneapolis Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Minneapolis with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Minneapolis 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 Minneapolis, Minnesota
Property taxes in Minneapolis, Minnesota, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Minneapolis is 1.56%, significantly higher than the U.S. national median of 0.99%. Local government entities within Minneapolis set these rates annually, and they can vary significantly across different neighborhoods. Each year, Minneapolis 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 Minneapolis's effective property tax rate to other areas in Minnesota and the national median. For comparison, the 55421 zip code has the highest median property tax rate of 1.61%, while the 55418 zip code has the lowest median tax rate of 0.98%. Understanding how these areas compare with Minneapolis provides valuable insights into the varying tax landscape across Ramsey County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Minneapolis Tax Rate
1.56%
Average Ramsey County Tax Rate
1.37%
Average Minnesota Tax Rate
1.11%
Average United States Tax Rate
0.99%
Property Tax Rates Across Minneapolis, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 55418 | 0.87% | 0.94% | 0.98% | 1.24% | 1.24% |
| 55421 | 1.32% | 1.46% | 1.61% | 1.68% | 1.72% |
| 55432 | 1.15% | 1.20% | 1.26% | 1.29% | 1.32% |
Source: Ownwell
Property Tax Assessment Values Across Minneapolis, Minnesota
In Minneapolis, 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 Ramsey 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 Minneapolis, 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 Minneapolis helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest median tax bill is $4,456 in zip code 55421, while the lowest is $1,101 in zip code 55418.
Average Minneapolis Assessed Value
$259,500
Average Ramsey County Assessed Value
$300,800
Average Minnesota Assessed Value
$290,400
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Minneapolis, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 55418 | $86,670 | $97,300 | $108,400 | $114,400 | $327,100 |
| 55421 | $140,740 | $197,350 | $269,600 | $367,600 | $439,600 |
| 55432 | $241,800 | $248,600 | $254,500 | $285,000 | $339,720 |
Source: Ownwell
Property Tax Bills Across Minneapolis, Minnesota
In Minneapolis, located in Ramsey County, property tax bills are calculated based on the assessed value of a home, which is determined by the county assessor. This assessed value is multiplied by the local tax rate to determine the tax bill. For example, the median home price in Minneapolis is $259,500. Homeowners in this area face varying tax bills, with the 25th percentile at $2,568 and the 75th percentile at $5,548, indicating a significant range in tax obligations. The highest median tax bill is found in zip code 55421, amounting to $4,456, while the lowest median tax bill is in zip code 55418, at $1,101. These figures highlight the impact of property taxes on homeowners, with some paying significantly more than others. Compared to the national median property tax rate of 0.99%, Minneapolis homeowners may find their tax bills higher or lower depending on their property's assessed value and location within the city.
Average Minneapolis Tax Bill
$3,984
Average Ramsey County Tax Bill
$4,166
Average Minnesota Tax Bill
$3,182
Average United States Tax Bill
$2,690
Property Tax Bills Across Minneapolis, Minnesota
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 55418 | $768 | $970 | $1,101 | $1,350 | $3,969 |
| 55421 | $1,936 | $2,962 | $4,456 | $5,906 | $7,269 |
| 55432 | $2,938 | $3,090 | $3,160 | $3,664 | $4,289 |
Source: Ownwell