With a 9.85% top income tax rate and 1.08% property tax, Minnesota homeowners face a significant combined tax burden. This calculator is pre-filled with Minnesota numbers: $330,000 median price, 1.08% property tax, $1,750/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Minnesota)$0
Loan Details — Minnesota
Minnesota median: $330,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Minnesota average: 1.08%
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Minnesota average: $1,750/yr
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Property Tax
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Minnesota Metro Area Home Prices
Click a metro to load its median price into the calculator above.
Yearly Amortization Schedule+
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Minnesota's Tax Landscape and Your Mortgage
Minnesota uses a progressive income tax with a top rate of 9.85%. A household earning $150,000 pays an estimated $9,604-$12,559 in state income tax, depending on filing status and deductions. That's $923/month less available for housing costs.
At the state's median home price of $330,000, the $1.08% property tax rate adds $297/month to your mortgage payment. That's $3,564/year — near the national median of ~1.1%.
Property Taxes Across Minnesota
The 1.08% statewide average masks significant variation. Property tax refund program helps moderate-income homeowners
Price ranges across the state: Minneapolis/St. Paul has a median of $370,000, while Duluth sits at $260,000 — a $110,000 gap that dramatically changes your monthly payment. At $1.08% property tax, that price difference alone means $99/month more in property tax in Minneapolis/St. Paul.
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Homebuyer Programs and Exemptions
Minnesota offers several programs for homebuyers:
Minnesota Housing Start Up program with deferred down payment loans
Step Up program for repeat buyers
Homestead exemption: Market value homestead credit reduces taxes by up to ~$300/year; property tax refund (circuit breaker) for taxes exceeding income thresholds
Minnesota-Specific Considerations
Among the highest income tax rates in the nation at 9.85% top bracket
Property tax refund program helps moderate-income homeowners
Minneapolis/St. Paul metro has seen significant price increases since 2020
No local income taxes but property taxes are above the national average
Property tax rates vary by county and school district — Twin Cities metro rates differ from Greater Minnesota
Compare Minnesota Mortgage Rates
See personalized rates from Minnesota lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Minnesota?
The average effective property tax rate in Minnesota is 1.08%. On a $330,000 home (the state median), that works out to approximately $3,564/year or $297/month added to your mortgage payment. Property tax rates vary by county and school district within Minnesota — always check your specific jurisdiction's rate. Homestead exemption: Market value homestead credit reduces taxes by up to ~$300/year; property tax refund (circuit breaker) for taxes exceeding income thresholds
How much does homeowners insurance cost in Minnesota?
The average annual homeowners insurance premium in Minnesota is approximately $1,750 ($146/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Minnesota?
Minnesota Housing Start Up program with deferred down payment loans. Step Up program for repeat buyers. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Minnesota housing finance agency website for current eligibility requirements and application deadlines.
How does Minnesota's 9.85% income tax affect home affordability?
Minnesota's top income tax rate of 9.85% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $9,604-$12,559/year (effective rate is lower than the top marginal rate). Combined with 1.08% property tax, the total tax burden in Minnesota is above average. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Minnesota?
The 2026 conforming loan limit in Minnesota is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Minnesota state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.