Your Guide to Property Tax in Minnesota

Aerial view of a neighborhood from a city in Minnesota

For many, there are aspects of selling or buying a property that can be daunting. Some focus on the repairs they may require before selling or the modifications they want to make when they move into a new home. However, one thing many people may not be familiar with until they purchase or sell a home is the MN property tax laws.

Until you receive your first bill, you may not be fully aware of what your annual property tax payments could be. If you are not educated about this at or prior to closing on a new property, it can sometimes be a shock when you receive your first tax statement from the Department of Revenue. Therefore it is smart to learn about all the ways you can save on these taxes.

Several factors go into the assessor’s office’s calculation of your real estate taxes, such as property value, zoning, the sale price, and any tax discounts you may qualify for, including homestead exemption or disability. 

It is a good idea to educate yourself on what goes into these calculations when owning a home to avoid any potential surprises when your bill comes. This information will give you a leg up on the process of taxation.

Property Taxes in Minnesota

The property taxes in MN are slightly lower than the property tax rates in St. Louis Park with an average rate of 1.11% of the property value. 

Based upon gathered property information and if a property is residential, industrial, commercial, or agricultural will help determine the tax rate imposed. Its location within a specific school district can also change the rate your property receives.

With over 70 local governments in Hennepin County alone, property taxation is affected by tax levies, which are imposed upon properties once all sources of revenue are considered. 

The county auditor will divide this tax levy by the property’s taxable value, determined by a tax assessor and based on fair market value. If a property is within a watershed district, this can also affect the levy.

In some cases, you may have an opportunity to appeal your property tax rate if you feel the valuation is incorrect. You can question your local county assessor directly or file an appeal and provide supporting documentation based upon recent property sales to have the value investigated.

Selling Property in Minnesota

Investigating the sale of a property in the state of MN can be a complicated process, with many steps and parties involved in every aspect of real property sales. 

A real estate professional could help inform buyers of the economic development in their area and the personal property tax they may be passing to a new homeowner. The buyer may also consider the median home value for your area.

Whether you decide to put your house on the market For Sale by Owner or through the aid of a real estate sales professional, once you find a buyer, there are several steps prior to closing, such as an inspection, an appraisal, and financing, if applicable. 

A buyer will consider the taxes on the property when calculating its affordability, so having this information ready to go will be very helpful for both sides. If you’re in need of a quick buyer who won’t make that many excuses, we buy houses Minnesota.

Selling Property in St Louis Park MN

When considering your options for selling property in St. Louis Park city, you should review the property appraisal values in your area to determine an enticing sale price for buyers. The tax assessment of a property in the St. Louis county area also affects the home value.

Rather than wait until you are in the middle of a property sale to learn about taxes you should research as much as you can about the topic now. It will only help to make your home sale a smooth transaction if you have all of the information you need to educate a buyer.

Property Taxes in St Louis Park

With a rate of 1.25% of the property value, the real estate taxes on a Hennepin County property in St. Louis Park are actually higher than the national average of 1.11%, or that of the state of MN, which is also 1.11%. With a home value of $250,000, for example, the tax would be $3,125 annually versus $2,775 nationally on the same home value.

This tax amount may seem high for some homeowners, as they are above the average property tax in their state. However, there could be a discrepancy with the valuation, or the estimated market value, which is something property owners could investigate with the county government if you suspect this is the case.

St Louis Park Property Tax Exemptions

A young couple discussing the tax exemptions in the St. Louis Park area

There are many ways to lower or even eliminate your tax bill in St. Louis Park or the nearby cities of Minnetonka, or Minneapolis. Depending upon the situation or the property type, tax exemptions are available to taxpayers in MN. These factors depend upon the property use or its ownership.

Homeowners in MN could receive a homestead exemption if:

  • They are a resident of the state of MN
  • They are living on the property all year
  • All property owners possess social security numbers
  • A close relative of the property owner resides at the property

In addition to receiving a homestead exemption on a property’s assessed value, disabled veterans could qualify for an additional exemption, which would allow for a $150,000-300,000 market value exclusion for them or their surviving spouses, depending upon their level of service-connected disability.

Tax Exemptions in Hennepin County MN

The exemptions specific to Hennepin County MN include those available to homeowners in St. Louis Park, which would also encompass those who are permanently disabled and receiving public assistance or homeowners who are legally blind and already claiming a homestead exemption. In addition, a disability exemption is available.

Other than homeowners, there are additional ways to qualify for property tax rate reductions. Properties that have the following characteristics would also receive exemption status with proper documentation:

  • Public schools or educational institutions
  • Churches or properties owned by religious organizations
  • Public owned properties
  • Publicly owned Hospitals 
  • Publicly owned Cemeteries 

Applications for exemption from property tax rates are generally due by February 1st of the year you are applying for, with some exceptions. Understanding all the tax options when buying or selling a house can be overwhelming, and it is a good idea to discuss them with the county if you’re unsure of what kind of discounts are available.

Conclusion 

Once you’ve gained insight into the process of property taxation and the valuation of your property, you’ll have a better understanding of what to expect when your property tax bill arrives. 

You’ll also be more aware of what can lower your tax bill, including what kind of exemptions you may qualify for. Every bit of information helps to maintain control over your finances when buying, selling, or owning real property.

Stlouispark.org contains further information that may be valuable to you when considering these options, or determining whether you are ready to buy or sell a property. 

If you’re looking to sell in Minnesota or even if you’re looking far away for cash buyers in Queens, we are your quickest option.

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