Minnesota Property Taxes Could Jump $1 Billion in 2026

Every County Plans to Raise Levies

If you own a home in Minnesota, your property tax bill is going up next year.

The Minnesota Department of Revenue released preliminary levy data in November showing a potential $948 million increase statewide.

That’s a 6.9% jump over 2025.

Every single county in Minnesota has proposed raising taxes, and 18 of them are looking at double-digit hikes. The numbers aren’t final yet, but the reasons behind them explain why this year feels different.

Freeborn County Tops the List

Freeborn County in southern Minnesota has the highest proposed increase in the state at 15%.

County commissioners approved the preliminary levy in September 2025, pointing to rising costs for healthcare, employee wages and benefits, and infrastructure materials.

The county historically kept increases low, with final levies of just 3.9% in 2024 and 2.8% in 2023. Local business owners have expressed concerns about how the increase will affect rents and their ability to stay open.

Cities Will Collect $4 Billion

City property tax levies across Minnesota will top $4 billion for the first time in 2026, an 8.7% increase over 2025.

County levies are rising 8. 1% to reach $4.54 billion. Townships are up 5.6%, and school district levies are climbing 5.8%.

When you add them all together, local governments could collect nearly $13.8 billion in property taxes next year.

That money pays for everything from snow removal to first responders to public health services.

Federal Law Cut SNAP Funding

A big chunk of the increase traces back to Washington.

The One, Big Beautiful Bill signed by President Trump this summer cut the federal reimbursement that counties receive for administering SNAP benefits in half.

Counties still have to run the program because it’s a federal mandate, but now they’re covering a larger share of the cost.

The Association of Minnesota Counties estimates these federal changes could add $116 million in new costs statewide.

Minnesota Runs Its Own Safety Net

Minnesota is one of only a handful of states where counties directly administer social services programs instead of the state government.

That includes SNAP, Medicaid, and child welfare services.

When federal funding drops, counties have few options besides raising property taxes. They can’t just stop providing these services.

State support for programs like child welfare also hasn’t kept pace, adding more pressure to local budgets.

1980s Computers Slow Everything Down

County workers processing SNAP and Medicaid applications are using computer systems that haven’t been updated since the 1980s.

These are DOS-based programs with green screens that require duplicate data entry and constant workarounds.

The outdated technology means tasks take longer, which means counties need more staff to handle the same workload. New federal work verification requirements are doubling the effort needed for each case.

Voters Approved 60 School Referendums

In November 2025, Minnesota voters approved 60 of 96 school funding referendums on the ballot. These measures raise property taxes to pay for operating costs, building renovations, and technology needs.

St. Paul voters approved $37.2 million more annually for their schools. The referendums totaled nearly $1.6 billion across the state.

For many districts facing stagnant state funding and expiring federal pandemic relief, local property taxes are the only path forward.

You Can Still Speak Up

Truth-in-Taxation hearings are happening across Minnesota through late December.

These public meetings let homeowners comment on proposed levies before local governments finalize their budgets. Cities with more than 500 residents, all counties, and school districts must hold these meetings.

The preliminary levy numbers you received in the mail represent the maximum your taxes can increase. Local officials can lower the final amount but cannot raise it above what they already proposed.

December 29 Is the Deadline

Local governments must set their final 2026 property tax levies by December 29, 2025. The Minnesota Department of Revenue will release the actual final numbers in February.

Last year, the statewide levy came in $63 million lower than preliminary estimates, resulting in a 5.6% final increase instead of the proposed maximum.

So the numbers you’re seeing now represent a ceiling, not a guarantee.

Relief If Your Taxes Jump 12%

If your property taxes increase by 12% or more from 2025 to 2026, you may qualify for a special homestead refund of up to $1,000.

There’s no income limit for this program. You just need to have owned and lived in the same home for both years.

The regular homestead credit refund is available to households earning under $139,320 and pays an average of $1,500.

Seniors over 65 with income under $96,000 can defer taxes above 3% of their income through a state program.

The Trend Isn’t Slowing Down

County property taxes in Minnesota have increased by more than $1 billion since 2021.

Officials with the Association of Minnesota Counties say their biggest concern isn’t just this year’s sticker shock but what comes next.

If federal support for social services continues to shrink and state mandates keep growing, property taxes will keep climbing.

For now, the best move for homeowners is to check their notices, attend a hearing if they can, and look into refund programs before filing their 2025 taxes.

This article was created with AI assistance and human editing.

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