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Last Updated: 11/22/2017

Interest Rates for Minnesota Counties

​County auditors, treasurers, and land commissioners should use the interest rates in the table below for delinquent real and personal property taxes and for special assessments.  A brief explanation of each rate follows the table.

Year​ ​Delinquent Taxes ​Property Tax Judgments ​Confession of Judgment, Homesteaded Property1 ​Confession of Judgment, All Other Eligible Property Repurchase, or Tax-Forfeited Land Sold on Contract for Deed​
2018​ ​10% ​4% ​5% ​10% ​10%
2017​ ​10% ​4% ​5% ​10% ​10%
​2016 ​10% ​4% ​5% ​10% ​10%
2015​ ​10% ​4% ​5% 10%​ ​10%
2014​ ​10% ​4% ​N/A ​10% ​10%
2013​ ​10% ​4% N/A​ ​10% ​10%
2012 10%​ 4% N/A​ ​10% ​10%
2011​ 10%​ 4%​2 N/A​ ​10% ​10%
2010​ 10%​ 4%​ N/A​ ​10% ​10%
2009​ 10%​ 4%​ N/A​ ​10% ​10%
2008​ 10%​ 4%​ N/A​ ​10% ​10%

1 The 2014 Minnesota Legislature passed legislation for a new interest rate on confession of judgment contracts on delinquent property classified as 1a or 1b and used as the homestead of the owner. The interest rate is equal to the higher of 5% or 2% over the prime rate as certified by the commissioner of revenue under Minnesota Statute 270C.40. subd. 5 (see Minnesota Statute 279.37. subd.2. para. (b).) This interest rate is effective beginning with qualified confession of judgment contracts established on or after January 1, 2016. The interest rate will be certified to the county auditors by the Minnesota Department of Revenue on or before November 1 each year.
 
2 Prior to April 16, 2010, this rate was certified at 4% for $50,000 or less and 10% for judgments over $50,000. Laws of Minnesota 2010. Chapter 249, revised Minnesota Statutes, section 549.09, subd. 1, to exempt the state and political subdivisions from increased interest rates on judgments and awards regardless of the amount.

 

Delinquent real and personal property taxes and special assessments

Under current law for real property and personal property, the interest rate on delinquent property taxes and special assessments is to be the same interest rate charged by the state for delinquent income and sales taxes, and is based on the adjusted prime rate charged by banks on bank-to-business loans. (NOTE: This interest rate applies to all delinquent real and personal property taxes, including manufactured home personal property taxes.)

This rate is to be a minimum of 10 percent  and a maximum of 14 percent. The interest rate charged by the state for 2017 is 4 percent. The interest rate on delinquent real and personal property taxes and special assessments for calendar year 2017 is 10 percent. 
 

Property tax judgments Minnesota Statutes, Chapter 278

Under current law for court judgments arising out of petitions for review, the interest rate to use is the floating rate based on the secondary market yield on one-year U.S. treasury bills.

For calendar year 2017 this interest rate is 4 percent.
 

Confessions of Judgment

The interest rate on confession of judgment contracts depends on the classification of the property.

  • If the property is classified as class 1a or 1b and is used as the homestead of the owner, the interest rate is the higher of 5% or 2% above the prime rate as determined by the commissioner (Minnesota Statute 270C.40. subd. 5; Minnesota Statute 279.37. subd. 2).
  • For other property eligible to enter into a confession of judgment, the interest rate is the same as the interest rate for delinquent taxes.

Property eligible to enter into a confession of judgment under Minnesota Statute 279.37. subd. 1 has a fixed rate of interest for the duration of the contract (see Minnesota Statute 279.03. subd. 2. para. (a)). Property eligible to enter into a confession of judgment under Minnesota Statute 279.37. subd. 1a has a variable rate of interest for the duration of the contract.

 

Repurchase Contracts and Tax-Forfeited Land Sold Under a Contract for Deed on Installment Plan

Interest rates on the following items share the same interest rate as delinquent taxes: 

  • The unpaid balance of any repurchase contract approved by the county board; and
  • The unpaid balance of the purchase price of tax-forfeited land sold under a contract for deed.
 

Resources

 

Questions?

PropTax.Admin@state.mn.us.