Watch this video from Hennepin County explaining the full property tax cycle – from property assessments and tax classifications to how local governments work together to allocate those funds to maintain and enhance our community.

Property taxes are based on several factors:

• Market Value Assessment: County assessors estimate your property’s market value by comparing it to recent sales of similar properties.

• Homestead Exclusion: If your property qualifies, a portion of your home’s value is exempt from taxation. The remaining value is the taxable market value.

• Tax Levies: Cities, counties, schools and special districts set budgets and tax levies — the amount needed to fund local services.

• Tax Rate Calculation: The county combines all tax levies and divides them by the total taxable property value to determine the local tax rate, which is then applied to your taxable market value.

Understanding how properties are valued is an important step in knowing how property taxes are determined. The below video from Hennepin County explains the factors that go into assessing property values, what impacts changes from year to year and what residents can do if they disagree with their valuation.

Hennepin County assessors are responsible for:

• Updating the property database (My Property Information).

• Inspecting and reviewing all properties at least once every five years.

• Reviewing properties with recent permits or partial assessments.

• Providing value and ownership information to the public.

• Sending annual property value notices each March. Property owners can contest their valuation through informal discussions or by appealing to the Board of Appeal and Equalization.

State law requires assessors to value properties at 100% of market value to ensure fair and equitable taxation

Hennepin County sends three property tax-related notices each year:

• March: Property Valuation Notice – Based on the prior year's sales, this notice is used to calculate future taxes. (Example: Notices received in March 2025 are based on 2024 sales and used to calculate taxes payable in 2026.)

• November: Proposed Property Tax Notice – Estimates next year’s taxes (not including special assessments) and provides information on truth-in-taxation meetings where residents can provide input.

• March: Final Tax Statement – Provides a breakdown of taxes due, with payment deadlines in May and October.

Learn more about property notices, including valuation, proposed levies and tax statements.

Learn about payment options through Hennepin County.

Several state programs can help reduce property taxes:

• Property Tax Refund: Assists homeowners and renters with high property taxes relative to income.

• Senior Citizens' Property Tax Deferral: Allows qualifying seniors to defer part of their taxes.

• Market Value Exclusion for Veterans with a Disability: Provides tax relief for eligible veterans and their spouses.

• Homestead Property Damaged by Mold: Provides tax relief for homes with significant mold damage repair costs.

• Homestead Classification for Persons Who Are Blind or Have a Disability: Offers a reduced tax rate for qualifying homeowners.

Visit the State of Minnesota’s website for more details.

If you disagree with your property assessment, you have the right to appeal.

• Informal Appeal (April – May): Contact your assessor to discuss your valuation or attend an open book discussion (details on your valuation notice).

• Formal Appeal (May – June): If concerns remain unresolved, you can:

  • Submit a written appeal or attend a hearing with the local or county Board of Appeal and Equalization.

  • File a property tax petition with the Minnesota Tax Court.

For full details on appeals, visit Hennepin County's property assessment webpage.