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How Much Minnesota Homeowners Pay in Property Taxes

imageForEntry38 yleHome sales surged in the United States in the early months of the pandemic. From the first quarter of 2020 to the second, the homeownership rate in the U.S. climbed from 65.3% to 67.9% – the largest quarterly increase since record keeping began in the mid 1960s. And while owning a home offers several advantages over renting, it also comes with added expenses – not the least of which are property taxes.

Property taxes, specifically those on land and residential structures, are typically levied at the local level – by cities, counties, or school districts. State governments also often impose additional taxes on personal property such as cars or boats.

Typically used for funding public services such as schools, law enforcement, and infrastructure improvements, property taxes are the lifeblood of local communities across the United States. Nationwide, property taxes accounted for 32.2% of all state and local tax revenue in fiscal 2020, more than any other tax, including sales and income taxes. Depending on the state, property taxes account for anywhere from 16.8% to 64.0% of tax revenue. (Here is a look at the counties where families need to budget the most for taxes in every state.)

Exactly how much Americans pay each year in property taxes depends both on their local property tax rate and the value of their property. For example, if a single family home is valued at $200,000 in a given year and the local property tax rate is 1%, the property tax bill would come to $2,000.

With a median home value of $285,400 in 2021, Minnesota has the 22nd most expensive housing market in the country, based on data from the U.S. Census Bureau’s American Community Survey. And according to the Tax Foundation, an independent nonprofit tax policy research organization, the effective property tax rate in Minnesota was 1.11% in 2021, the 19th highest among the 50 states.

Meanwhile, per capita state and local property tax collections in Minnesota totaled $1,776 in fiscal 2020, compared to $1,810 across the entire country.

All tax data in this story was compiled by the Tax Foundation.

Rank State Effective property tax rate, 2021 (%) Per capita state & local prop. tax collections, FY2020 ($) Median home value, 2021 ($)
1 New Jersey 2.23 3,431 389,800
2 Illinois 2.08 2,268 231,500
3 New Hampshire 1.93 3,285 345,200
4 Vermont 1.83 2,860 271,500
5 Connecticut 1.79 3,295 311,500
6 Texas 1.68 2,216 237,400
7 Nebraska 1.63 2,088 204,900
8 Wisconsin 1.61 1,717 230,700
9 Ohio 1.59 1,458 180,200
10 Iowa 1.52 1,806 174,400
11 Pennsylvania 1.49 1,644 222,300
12 New York 1.40 3,118 368,800
13 Rhode Island 1.40 2,449 348,100
14 Michigan 1.38 1,594 199,100
15 Kansas 1.34 1,712 183,800
16 Maine 1.24 2,862 252,100
17 South Dakota 1.17 1,606 219,900
18 Massachusetts 1.14 2,638 480,600
19 Minnesota 1.11 1,776 285,400
20 Maryland 1.05 1,744 370,800
21 Alaska 1.04 2,276 304,900
22 Missouri 1.01 1,114 198,300
23 North Dakota 0.98 1,538 224,400
24 Oregon 0.93 1,730 422,700
25 Georgia 0.92 1,336 249,700
26 Florida 0.91 1,541 290,700
27 Oklahoma 0.89 883 168,500
28 Virginia 0.87 1,830 330,600
29 Washington 0.87 1,727 485,700
30 Indiana 0.84 1,146 182,400
31 Kentucky 0.83 33 173,300
32 North Carolina 0.82 1,082 236,900
33 California 0.75 1,955 648,100
34 Montana 0.74 1,806 322,800
35 New Mexico 0.67 899 214,000
36 Mississippi 0.67 1,167 145,600
37 Tennessee 0.67 845 235,200
38 Idaho 0.67 1,131 369,300
39 Arkansas 0.64 798 162,300
40 Arizona 0.63 1,206 336,300
41 Delaware 0.61 1,049 300,500
42 Nevada 0.59 1,153 373,000
43 Utah 0.57 1,209 421,700
44 West Virginia 0.57 1,002 143,200
45 South Carolina 0.57 1,314 213,500
46 Louisiana 0.56 914 192,800
47 Wyoming 0.56 2,163 266,400
48 Colorado 0.55 1,956 466,200
49 Alabama 0.40 632 172,800
50 Hawaii 0.32 1,556 722,500
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