Key Takeaways
- Minnesota deed tax is 0.33% (\$3.30 per \$1,000) of net consideration
- Mortgage registration tax is 0.23% of the mortgage amount
- Property taxes are paid in the year following assessment (in arrears)
- The Well Disclosure Certificate is required at closing for properties with wells
- Transfer declarations are required for recording deeds
Last updated: January 2026
Taxes & Closing Requirements
Understanding Minnesota tax requirements is essential for closings and the exam.
Minnesota Deed Tax
State Rate
| Rate | Calculation |
|---|---|
| 0.33% | $3.30 per $1,000 |
| Who pays | Typically seller |
| Exemptions | Various available |
Calculation Example
| Sale Price | State Deed Tax |
|---|---|
| $200,000 | $660 |
| $350,000 | $1,155 |
| $500,000 | $1,650 |
Net Consideration
| Included | Excluded |
|---|---|
| Purchase price | Assumed mortgages |
| Personal property | Prorations |
| Cash | Liens assumed |
Mortgage Registration Tax
Rate
| Rate | Details |
|---|---|
| 0.23% | $2.30 per $1,000 |
| Who pays | Typically buyer |
| When due | At recording |
Calculation Example
| Mortgage Amount | MRT |
|---|---|
| $200,000 | $460 |
| $300,000 | $690 |
| $400,000 | $920 |
Property Taxes
Tax Cycle
| Concept | Minnesota Rule |
|---|---|
| Paid in arrears | For current year |
| Due dates | May 15 and October 15 |
| Assessment | January 2 |
| "Payable year" | Year taxes due |
Proration at Closing
| Method | Details |
|---|---|
| Calendar year | Pro-rate to closing |
| Credit to buyer | Seller pays share |
| Using current year | Per closing statement |
Exemptions
| Exemption | Details |
|---|---|
| Homestead | Reduced rate for homeowners |
| Senior citizen | Property tax refund |
| Disabled | Additional exemptions |
| Agricultural | Green Acres program |
Closing Requirements
Required Documents
| Document | Purpose |
|---|---|
| Deed | Transfer ownership |
| Well disclosure | For properties with wells |
| Septic compliance | If applicable |
| Certificate of value | For recording |
Well Disclosure Certificate
| Requirement | Details |
|---|---|
| Required | At closing |
| Disclosed | Well location, status |
| County recorder | Files certificate |
| MDH standards | Must comply |
Recording Requirements
To Record Deed
| Requirement | Details |
|---|---|
| Certificate of value | eCRV required |
| Deed tax | Tax paid |
| Proper form | Correct format |
| Recording fee | County fee |
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Test Your Knowledge
What is the Minnesota state deed tax rate?
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Test Your Knowledge
When are Minnesota property taxes due?
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Test Your Knowledge
What is the mortgage registration tax rate in Minnesota?
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