Minneapolis

Minnesota Homeowners Hit With 7 Percent Tax Hike

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Published on March 09, 2026
Minnesota Homeowners Hit With 7 Percent Tax HikeSource: Unsplash / {Kelly Sikkema}

Minnesota homeowners are staring down roughly a 7 percent jump in property tax levies next year, and the early numbers are already cranking up the heat on lawmakers in St. Paul.

Preliminary figures from the Minnesota Department of Revenue show proposed levies could climb by about $948.2 million, a 6.9 percent increase statewide. Cities are projected to seek an 8.7 percent bump, counties about 8.1 percent and schools around 5.8 percent. Those numbers come from levies local governments certified after Truth-in-Taxation notices went out in November.

These are preliminary maximums that counties use to calculate parcel-specific estimates and they can still be trimmed before final adoption, KSTP notes. Last year, the final statewide levy ended up roughly $63 million below the preliminary tally.

What Is Driving The Jump?

Local officials and budget watchers are mostly pointing to rising operating costs. They cite higher insurance premiums, wage and benefit increases tied to collective bargaining, and state and federal cost shifts for programs such as human services and paid family leave, the Star Tribune reports. Voter-approved school referendums in dozens of districts this fall have piled additional pressure on local tax levies.

Lawmakers Start Drawing Battle Lines

At the Capitol, Republican senators are rolling out bills aimed at slowing levy growth. Sen. Michael Kreun (R-Blaine), an assistant minority leader, has proposed capping local levy increases at the rate of inflation plus half of population growth, with any increase above that requiring voter approval, Alpha News reported. Alpha News quoted Kreun saying that “home ownership is out of reach for too many people” as he promoted the package, and the Minnesota Senate Republican Caucus lists him among its leadership on its member page.

In the House, the focus has included more study and transparency. The House Taxes Committee recently advanced a bill that would create a statewide Property Tax Task Force to dig into what is driving levies and suggest fixes. The bill summary and status are available through the legislative record, and can be viewed via LegiScan.

What It Means For Homeowners

For a median-priced Minnesota home, about $400,000 in late 2025, the county portion of the tax bill alone could jump by roughly $125 on average. When city, county and school changes are all stacked together, many households are in line for increases of several hundred dollars, the Star Tribune reports. The hit will not be uniform: some suburban and rural communities are staring at much steeper percentage hikes than the statewide average.

How Homeowners Can Push Back

Residents who want to weigh in are being urged to show up at local Truth-in-Taxation hearings, review the parcel estimates included with their notices and, if needed, dig into their county assessor’s appeal process. The Minnesota Department of Revenue lays out the Truth-in-Taxation timelines, procedures and what to expect for property tax notices and appeals.

With local officials citing rising costs and state lawmakers floating both levy limits and a study panel, expect the property tax fight to run through the spring session in St. Paul; CBS News Minnesota highlighted the issue on March 8, 2026, and the final statewide bill will become clear once the Minnesota Department of Revenue posts the certified levy numbers.