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Last Updated: 10/26/2017

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Property Tax Administrators > Tax Calculation & Delinquency > Interest Rates for Minnesota Counties

  • How is interest for delinquent taxes calculated? Back to top

    According to the law, interest on delinquent real and personal property taxes and special assessments is to be calculated at simple interest rather than compounded. Interest is imposed on the total amount of unpaid taxes, penalties and county costs; it is calculated only for the months that those taxes, penalties, and costs remain unpaid. For this purpose, a portion of a month is deemed to be a whole month. This means that the interest rate for a given month is the same regardless of when the delinquent tax is paid during that month.

    For more information about the use of the interest rate, see Section 6160 in the Delinquent Real Property Tax and Tax Forfeiture Manual.

  • Is there a simpler way to calculate accumulated interest on multiple years of delinquent taxes?Back to top

    Consult our table, Accumulated Interest Rates on Delinquent Property Taxes, which is updated yearly. The table shows the interest rate to use for the month in which the delinquent tax is paid, depending on the year in which the tax became delinquent. The table also shows the annual interest rate for the years 1991-2012. 

    For example, assume that a taxpayer shows up on April 11, 2012, to pay his delinquent real property taxes for payable 2009 that became delinquent on January 2, 2010. In the table you would go to the column for April, 2012 and the row for payable 2009, delinquent 2010. The accumulated interest rate where this column and row meet is 23.3333%.

    This table is intended to assist you in determining the correct interest rate to use in calculating for a taxpayer the total of unpaid taxes, penalties, county costs, and interest. It can also be used to determine the total of delinquent taxes, penalties, county costs, and interest going into a confession of judgment that is confessed in calendar year 2012.

  • How is interest on court judgments calculated?Back to top

    The interest rate for court judgments applies as follows:

    • If the tax is sustained in full:  Interest is imposed on the unpaid part of the tax, including any penalties accrued.
    • If the tax is increased:  Interest is imposed on the unpaid part of the tax as originally assessed, including any penalties accrued.  
    • If the tax is reduced:  Interest is imposed on the difference between the tax as recomputed and the amount previously paid.
    • If the petitioner has overpaid the amount of tax determined or stipulated to be due:  Interest is imposed on the overpayment from either the date a Petition for Review is filed or the date the tax is paid (whichever is later) until the date a refund warrant is issued. For this purpose, an "overpayment" occurs on the date when the cumulative total of the payments made by the taxpayer for the taxes payable year exceed the final tax amount determined for that year. Also for this purpose, taxpayer payments are allocated first to any penalty imposed due to late payment of installments, then to the tax due.

    Interest for court judgments is determined on a year-by-year basis. For example, if in 2011 a court judgment is rendered on a case involving payable 2009 property taxes, and the judgment sustains the taxes in full, the unpaid part of the tax would be subject to 12 months of interest at the judgment interest rate that applied for 2010 plus interest from January 1, 2011 to the date of payment at the judgment interest rate that applies for 2011. 

    (The source of the interest rate to use for Chapter 278 property tax judgments was decided by the Minnesota Supreme Court in the case of Arcadia Development Corp. v. Hennepin, March 3, 1995.)

  • What classes of property qualify for a Confession of Judgment? Back to top

    Consult our table. Property classes are organized by whether they qualify under a 10-year plan, a 5-year plan, or neither. For each class of real property the table lists the class name, real property description and class rate percentage.

    While not listed in the table, manufactured homes that are currently homesteaded may also qualify for a Confession of Judgment.