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How Much Minnesota Homeowners Pay in Property Taxes Each Year

imageForEntry49 LA9Property taxes are the lifeblood of local governments and municipalities across the United States, accounting for over 70% of all local tax revenue. Property taxes – such as taxes levied on homeowners and landowners – go to fund schools, parks, roads, and other public works and services.

While states typically impose a minimum property tax, property taxes are mostly determined at the local level – and are often a percentage of a property or home’s overall value. Depending on where you choose to buy a home, property taxes can range from negligible amounts to nearly matching a mortgage payment.

Across Minnesota, the effective annual property tax rate stands at 1.05%, the 19th highest among states. For context, homeowners in the U.S. pay an average of 1.03% of their housing value in property taxes a year.

The effective property tax rate is calculated by taking the total amount of taxes paid on owner-occupied homes in a given area as a share of the total value of those homes. While an effective property tax rate is useful for comparing taxes at the state level, it is important to note that property tax rates can still vary considerably within a given state.

Because property taxes are typically levied as a share of a given home’s value, Americans living in places with higher home values often pay more in property taxes in dollar terms, even if the effective property tax rate is relatively low. In Minnesota, the typical home is worth $246,700, in line with the national median home value of $240,500.

All data in this story is from the Tax Foundation, a tax policy research organization, and the U.S. Census Bureau’s 2019 American Community Survey.

Rank State Effective property tax rate (% of home value) Median home value ($) Median household income ($)
1 New Jersey 2.13 348,800 85,751
2 Illinois 1.97 209,100 69,187
3 New Hampshire 1.89 281,400 77,933
4 Vermont 1.76 233,200 63,001
5 Connecticut 1.73 280,700 78,833
6 Texas 1.60 200,400 64,034
7 Nebraska 1.54 172,700 63,229
8 Wisconsin 1.53 197,200 64,168
9 Ohio 1.52 157,200 58,642
10 Iowa 1.43 158,900 61,691
11 Pennsylvania 1.43 192,600 63,463
12 Rhode Island 1.37 283,000 71,169
13 Michigan 1.31 169,600 59,584
14 New York 1.30 338,700 72,108
15 Kansas 1.28 163,200 62,087
16 Maine 1.20 200,500 58,924
17 South Dakota 1.14 185,000 59,533
18 Massachusetts 1.08 418,600 85,843
19 Minnesota 1.05 246,700 74,593
20 Maryland 1.01 332,500 86,738
21 Alaska 0.98 281,200 75,463
22 Missouri 0.96 168,000 57,409
23 Oregon 0.91 354,600 67,058
24 North Dakota 0.88 205,400 64,577
25 Georgia 0.87 202,500 61,980
26 Florida 0.86 245,100 59,227
27 Washington 0.84 387,600 78,687
28 Virginia 0.84 288,800 76,456
29 Oklahoma 0.83 147,000 54,449
30 Indiana 0.81 156,000 57,603
31 Kentucky 0.78 151,700 52,295
32 North Carolina 0.78 193,200 57,341
33 Montana 0.74 253,600 57,153
34 California 0.70 568,500 80,440
35 Idaho 0.65 255,200 60,999
36 Tennessee 0.63 191,900 56,071
37 Mississippi 0.63 128,200 45,792
38 Arkansas 0.61 136,200 48,952
39 Arizona 0.60 255,900 62,055
40 New Mexico 0.59 180,900 51,945
41 Delaware 0.59 261,700 70,176
42 Nevada 0.56 317,800 63,276
43 Utah 0.56 330,300 75,780
44 South Carolina 0.53 179,800 56,227
45 West Virginia 0.53 124,600 48,850
46 Colorado 0.52 394,600 77,127
47 Wyoming 0.51 235,200 65,003
48 Louisiana 0.51 172,100 51,073
49 Alabama 0.37 154,000 51,734
50 Hawaii 0.31 669,200 83,102
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