Chanhassen homeowners are sitting on some of the pricier properties in the Twin Cities suburbs, yet the portion of their tax bill that goes to City Hall is still among the lowest in the metro. That is the takeaway from a new benchmarking review presented at a June 22 City Council work session, which paints Chanhassen as an outlier: high market values paired with a relatively small city tax share. The analysis arrives as staff start early work on the 2027 budget and ahead of fall levy discussions.
By the numbers
The benchmarking summary pegs the average Chanhassen home value at $566,614, with the owner of that average-value house paying $1,271 in city property taxes, according to the City of Chanhassen. The report ranks Chanhassen homeowners as paying the second-lowest city property taxes among 19 Municipal Legislative Commission peers and the third-lowest among 22 comparable metro communities.
Budget context
The city adopted a 2026 property tax levy that rose about 6.9%. Local reporting says the levy totaled roughly $16.4 million, an increase of about $1.1 million from 2025, Carver County Local News reported. That coverage notes that overall 2026 expenditures fell in part because major street projects were pushed into later years. Finance staff told residents that bond results and project timing helped trim the levy from an earlier proposal.
Where your property tax goes
The benchmarking breakdown shows that only about one-fifth of a homeowner's total property tax bill goes to the city, roughly 20.5% to 20.7%, while Carver County receives about 29% and local school districts take in roughly 45%, according to the city's materials. The result is that homeowners see sizable overall bills driven mostly by school and county levies, which limits how much municipal budget decisions can move the final number on taxpayers' statements.
Why values matter
Third-party housing data place Chanhassen among the pricier Twin Cities suburbs, which pushes assessed values up even when municipal tax rates stay competitive. Neighborhood profiles show median and average prices well above many nearby towns, according to HomeSnacks. That combination of larger market values and a relatively small city share of each tax dollar helps explain how homeowners can face substantial overall bills while still paying comparatively low city property taxes.
What comes next
City staff presented the benchmarking at the June 22 work session and posted a summary online, and the city shared the highlights on its official Facebook page on July 15. Council members are expected to use the report as background for upcoming budget and capital-program decisions this fall as staff works to balance infrastructure needs, service levels and long-term financial stability.
