Looking to help clients buy or sell in Minneapolis or a surrounding area? Navigating real estate means embracing the less glamorous parts—like property taxes. Property taxes can make or break a sale; you don’t want your client to fall in love with a home only to discover that the property tax is unaffordable or too excessive for their budget.

Preparing your client with the right information sets them up for success and leads to more sales for you. Curious to know more? We have the information you need about Minneapolis property tax. 

Property tax rates in Minneapolis for 2025

Minneapolis is part of the beloved Twin Cities area, including St. Paul. The area is known for its diversity, gorgeous skylines, and several great tourist attractions, including the Mall of America and the largest state fair in the country. Minneapolis is family-friendly, with many museums and zoos, theme parks, and nature trails to explore. 

As a popular city with in-demand attractions, the cost of living in Minneapolis is actually 6% lower than the national average. The median home value in Minneapolis is $359,900, which is no increase or decrease from the previous year. 

The Minneapolis property tax rate is 1.30%. In Hennepin County, the average rate is 1.26%. Both are larger than the national average of 1.02%, making property taxes slightly higher in Minneapolis. 

The formula for determining property tax in Minneapolis multiples tax capacity by the local tax rates to create a base tax value. You then subtract any credits and add levies and general state tax to determine the property tax due.

Will Minneapolis property tax rates rise in the next year?

For the 2025/2026 fiscal year, Minneapolis homeowners will see a 6.9% increase in the city portion of their property taxes. This is the largest such increase in about 15 years and is part of the city’s approved $1.8 billion budget. For a home valued at the city’s median of $331,000, this will amount to an additional $170 in city property taxes. The City Council was able to reduce the initially proposed 8.3% tax hike by implementing measures such as cutting raises for high-paid city staff and deferring technology projects.

While the Minneapolis property tax rate is slightly higher than the national average, it’s important to remember that the final tax amount for a homeowner is determined by a combination of factors, including county and school district rates.

For a rough estimate of what you might pay, a free tax estimator tool for Minneapolis is available, though its calculations are not guaranteed to be precise.

Tax rates in surrounding areas

If you would rather commute to Minneapolis than live in the city, check out some nearby locations and their tax rates: 

  • Champlin: 1.12%
  • Maple Grove: 1.14%
  • Bloomington: 1.15%
  • Hamel: 1.22%
  • Edina: 1.30%
  • Robbinsdale: 1.35%
  • New Hope: 1.43%

Many are above the national average, but some are lower (or surprisingly higher) than Minneapolis. 

What does property tax revenue fund in Minneapolis?

Minneapolis does not set or collect taxes. They simply assess and classify the information needed to calculate how much you owe. Instead, local property taxes collected by Hennepin County fund services and programs in the area, including:

Important information to know when moving to Minneapolis, MN

Minnesota’s general sales tax rate is 6.875%, though there are exceptions such as food, prescriptions, and clothing. In Hennepin County, you can expect an additional 0.15% sales tax. The City of Minneapolis has a 0.5% sales tax within the city limits. 

Minneapolis puts together an annual budget in December, determining how much services in the city will cost. They first consider other taxes collected, like sales tax, before deciding the amount of property tax to collect. 

When do Minneapolis property assessments take place?

Property assessments happen for Minneapolis homeowners every five years. Property tax assessments are completed by January 2nd. Starting in March, assessors send out a valuation notice, including the estimated and taxable market values. Assessors consider your home, land, and additional structures (like sheds, porches, and gazebos). 

When are Minneapolis property taxes due?

Property taxes are due on both May 15th and October 15th (the first half of taxes due by the former). If either date falls on holidays or weekends, pay by the next business day. 

Qualifying taxpayers can apply for the Hennepin County Homestead Exemption, which reduces the appraised value for lower annual property tax rates. Applications are available by calling the Hennepin County Assessor’s office. 

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Just as you equip clients with crucial financial details like property taxes, it’s equally important to present the home itself in the best possible light. A powerful first impression is key in the competitive Minneapolis market, and professional photography ensures your listing captures the attention of serious buyers.

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FAQ

For the 2025 fiscal year, homeowners will see a 6.9% increase in the city portion of their property taxes.

Property taxes are due annually on May 15th and October 15th.

The Minneapolis property tax rate of 1.30% is higher than the national average of 1.02%.

Property tax revenue funds local services including police, fire stations, street maintenance, libraries, and public schools.

Property assessments for homeowners in Minneapolis happen every five years.