Minnesota’s Big Property Tax Jump for 2026

Friends, if you’ve already peeked at your preliminary levy notices and felt your blood pressure spike, you are not alone. Minnesota is gearing up for one of the largest property tax increases we’ve seen in years — with statewide estimates adding up to $950 million more in 2026 compared to 2025.

That’s roughly a 6.9% increase across the state.
And many cities and counties are projecting even higher.

Consider this your clear, calm (and slightly caffeinated) breakdown of what’s happening… and what you can do before your bill shows up and steals your joy.

Preliminary estimates for 2026 show:

If the last few years felt like steady climbs, this year is more like a stair-step.

Employee wages, snowplows, squad cars, asphalt, park maintenance, salt (why is salt so expensive??)… basically every ingredient that makes a city run has gone up in cost.

Pandemic-era funding is gone. Needs remain. Cities and counties are filling the gap with the tool they control: property taxes.

Dozens of districts approved new funding on the November ballot.
Those “yes” votes turn into “oh hey, my taxes went up” in 2026.

Many areas kept rates artificially low during the last few years because households were strained. Now they’re recalibrating.

In places like Minneapolis, office buildings and commercial property values dropped. When commercial contributes less, residential pays a bigger share of the levy.

Roads, water mains, fire stations, parks… everything needs maintenance or replacement, and it’s not cheap.

Nothing about this is glamorous — it’s the least sparkly thing I’ve ever written, and I write about zoning sometimes — but these are the real drivers.

Here’s the part you actually need to pay attention to:

Even with levy increases, your final tax bill depends heavily on how your home was assessed.

And assessments can be wrong.

Roughly 30–50% of appeals result in some kind of reduction.
When your Truth-in-Taxation notice arrives in the spring, that’s your moment.

Wrong classification?
Wrong square footage?
Did someone count your storage nook as livable space? (It happens.)

Incorrect data = higher taxes.

Minnesota has several programs through the Department of Revenue. Worth a look.

Cities and counties finalize levies in December.
Preliminary numbers can go down, but they cannot go up.

If you want to advocate, that’s the window.

For buyers:
Factor higher taxes into your monthly payment. Especially in Minneapolis, St. Paul, and inner-ring suburbs.

For sellers:
Expect buyers to run numbers more carefully. Price strategy matters more than ever.

For everyone:
Higher taxes rarely freeze the market, but they do shape buyer psychology and budget ranges.

This year’s increases are less about panic and more about reality finally catching up. Cities, counties, and school districts are absorbing higher costs after several years of trying to keep things comfortable for residents.

That doesn’t make it feel better — but understanding the “why” helps the “what now” feel less overwhelming.

If you want help appealing your valuation or understanding what this looks like in your neighborhood, I’m always happy to walk through it with you.

Because nothing says community like decoding your property tax statement together. 😅

Minnesota Department of Revenue • KSTP • WJON • Realtor.com • Star Tribune • Local budget documents • Minnesota Reddit threads (yes, even those)