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Mortgage Registry Tax Summary

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Mortgage Registry Tax (MRT) is imposed when a mortgage is recorded. The tax rate is 0.0023 of the debt secured by a mortgage on Minnesota real property (plus an additional 0.0001 for Hennepin and Ramsey counties). The debt is subject to tax.

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Tax Information [+]

Forms and Instructions [+]

Mortgage Registry Tax Examples [+]

Example 1: Standard Home Loan – New Note, New Debt

Mortgage 1 is recorded securing a promissory note (Note 1) in the amount of $500,000.

Question	Answer
Does the document secure a new debt or increase an existing debt?	Yes
What is the document doing?	Securing $500,000 of new debt
What amount of debt is subject to tax?	$500,000

Example 2: Standard Refinancing Loan – New Debt

Mortgage 1 is recorded securing a promissory note (Note 1) in the amount of $500,000. Tax is paid on $500,000. When the unpaid principal balance of the loan is $250,000, the mortgagor signs a second promissory note (Note 2) in the amount of $250,000.

Note 2 pays off Note 1, and Mortgage 1 is satisfied
Mortgage 2 is recorded securing Note 2

Question	Answer
Does the document secure a new debt or increase an existing debt?	Yes
What is the document doing?	Securing $250,000 of new debt
What amount of debt is subject to tax?	$250,000

Example 3: Supplemental Mortgage – Existing Debt Increased

Mortgage 1 is recorded securing a promissory note (Note 1) in the amount of $5,000,000. Tax is properly paid on $5,000,000. When the unpaid principal balance is $2,500,000, the mortgagor signs a second promissory note (Amended Note 1), which amends Note 1 and describes an additional advance of $2,500,000.

Note 1 is not paid off, and Mortgage 1 is not satisfied
Supplemental Mortgage 1 is recorded securing Amended Note 1

Question	Answer
Does the document secure a new debt or increase an existing debt?	Yes
What is the document doing?	Securing $2,500,000 of additional debt
What amount of debt is subject to tax?	$2,500,000

Example 4: Modified Mortgage – New Debt

Mortgage 1 is recorded securing a promissory note (Note 1) in the amount of $5,000,000. Tax is properly paid on $5,000,000. When the unpaid principal balance is $2,500,000, the mortgagor signs a second promissory note (Note 2) in the amount of $5,000,000.

Note 2 pays off Note 1 and advances $2,500,000 to the mortgagor
Modified Mortgage 1 is recorded securing Note 2

Question	Answer
Does the document secure a new debt or increase an existing debt?	Yes
What is the document doing?	Securing $5,000,000 of new debt
What amount of debt is subject to tax?	$5,000,000

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Last Updated

October 22, 2019