Deed Tax Rate
The Deed Tax rate is 0.0033 of the net consideration. Hennepin and Ramsey counties have an additional Environmental Response Fund Tax of 0.0001 (ERF Tax).*
| State/County | Deed Tax Rate | Environmental Response Fund Rate |
|---|---|---|
| State rate for all Minnesota counties | 0.0033 | N/A |
| Hennepin County (ERF Tax) | 0.0033 | 0.0001 |
| Ramsey County (ERF Tax) | 0.0033 | 0.0001 |
Example:
Real Property is sold for $200,000.
| Location of Sale | Deed Tax Rate | Tax Due |
|---|---|---|
| Hennepin County | (0.0033 x $200,000) + (0.0001 x $200,000) | $680 |
| Ramsey County | (0.0033 x $200,000) + (0.0001 x $200,000) | $680 |
| All other Minnesota Counties | 0.0033 x $200,000 | $660 |
Definitions
Consideration: The value given in return for a conveyance of real property. (See Minnesota Statute 287.20 subdivision 2.)
Net Consideration: Consideration less the value of any lien or encumbrance remaining on the property prior to the time of sale and that is not released or satisfied as a result of the sale. An example would be a buyer’s assumption of the seller’s mortgage.
Execution and Delivery: Deed Tax is due when a taxable deed or instrument is presented for recording. (See Minnesota Statute 287.21 subdivision 1[d].)
* See Minnesota Statutes, section 383A.80 and section.383B.80
