Potential Increase in Minnesota Property Taxes
Property taxes in Minnesota could see a rise of up to $1 billion next year due to levy increases approved by local governments, including counties, cities, school boards, and various taxing districts for 2025.
This increase, which will be reflected in payments due in 2026, is linked to rising operational costs driven by inflation, according to local government groups. The projected total statewide levy could hit around $14.6 billion—marking a 6.9% increase compared to 2025. It’s worth noting that the final figure often ends up being lower than this initial estimate, serving primarily as a basis for the government’s final levy decisions.
Final property taxes are set to be announced by year’s end after local governments assess individual property estimates and send preliminary tax notices to owners in November. A public consultation will take place on December 29, allowing the tax authority to finalize the tax amounts. For updates on truth-in-tax hearings in your area, you can check your local tax authority’s website.
In 2025, Minnesota’s property taxes were reported at approximately $13.7 billion. Comparatively, around $10.9 billion was collected in 2020.
Tax Increases By Year
State data reveals the following increases in recent years:
- 2025 — 5.6% ($718.6 million)
- 2024 — 6.4% ($775 million)
- 2023 — 5.4% ($626 million)
- 2022 — 3.9% ($431 million)
- 2021 — 2.1% ($226 million)
- 2020 — 4.6% ($501 million)
Challenges at the Federal Level
Federal changes during President Trump’s administration might introduce new eligibility requirements for programs like Medicaid, adding financial strains, as noted by the Minnesota Association of Counties.
Matt Hilgert, a lobbyist for the association, mentioned that rising fundamental costs—like salaries, employee benefits, and even gas—prompt additional staffing needs due to unpredictable government regulations. It’s a bit frustrating, really. He remarked, “The combination of new mandates and less reimbursement leads counties to raise taxes just to meet state or federal requirements.” It’s like being stuck in a bind.
When President Trump and the Republican Congress passed a large bill last summer, it raised concerns in counties about the financial impact of new administrative demands for Medicaid and SNAP, even though the bill claimed to focus on tax cuts for individuals.
Focus on Ramsey County Taxes
Ramsey County, where a 9.75% ($38.6 million) levy increase was approved, cites unfunded state mandates, employee compensation, and service resource allocations as the primary expenses, according to County Manager Ring Becker.
About 46% of Ramsey County’s upcoming budget will rely on property taxes, with the rest funded through state and federal support, service fees, and other sources. The county’s levy increases over recent years include 4.75% in 2025, 6.8% in 2024, and 4.5% in 2023.
On a broader scale, counties statewide raised their levies by an average of 8.1%, up from the 5%-6% range the previous year. Cities are similarly expected to raise their levies by around 8.7%, while schools anticipate increases of about 5.8% on average.
It’s important to clarify that this levy increase doesn’t automatically equate to higher property taxes for owners—those in areas undergoing new developments might actually find ways to lessen the impact. However, in Ramsey County, Hilgert pointed out that opportunities for expanding the property tax base are limited, given its smaller size and high social service costs.
If these projections hold, the expected statewide tax hike in 2026 would be notable but, historically, the actual increases typically fall between 8% and 15%.
Last year, officials anticipated a maximum tax increase of $781.6 million for 2025, reflecting a 6.1% rise over 2024, although the end result was slightly lower—showing a 5.6% increase instead. It’s expected that the upcoming change from 2023 to 2024 may be even larger, with estimates suggesting a levy boost of up to 7.3%, or $882.1 million, statewide.
Concerns from School Districts
Kirk Schneiderwind, the executive director of the Minnesota School Boards Association, expressed that local districts are anxious about uncertain federal funding but feel that inflation and a growing reliance on local taxes are more pressing issues. “The state funding increase hasn’t kept pace with inflation,” he said. To maintain programs and opportunities, “we have to find new revenue streams.”
The Minnesota education funding bill for 2023 includes a 3% funding increase but Schneiderwind noted that two years isn’t sufficient to tackle long-standing issues.
St. Paul Public Schools, among various districts, received voter approval for a levy referendum in the recent general election. Once implemented, the district’s general revenue is projected to grow by $1,037 per student over a decade starting in 2026, expecting to raise nearly $37.2 million.
For more details on preliminary property tax levies, it’s advisable to visit the Department of Revenue’s website.
