Minnesota Mortgage Calculator

Mortgage Calculator in Minnesota

The median home price in Minnesota is $330,000, which is 21% below the national average of $420,000. Minnesota's effective property tax rate of 1.02% is 0.08 percentage points lower than the national average of 1.1%.

Metric	Minnesota (MN)	National Avg	vs National Average
Median Home Price	$330,000	$420,000	-21%
Property Tax Rate	1.02%	1.1%	-0.08%
Home Insurance (Annual)	$1,800	$2,300	-22%
State Sales Tax	6.875%	5%	+1.9%
FHA Loan Limit	$472,030	$472,030	Standard
Conforming Loan Limit	$766,550	$766,550	Standard

Homeownership in Minnesota

Minnesota's housing market centers on the Twin Cities metro, which has seen sustained price growth to a median around $330,000. The state has an unusual property tax system where commercial and industrial properties are taxed at higher rates to subsidize lower residential rates, though this fiscal disparities system is under ongoing debate. Minnesota's income tax is progressive with a top rate of 9.85% -- the fourth-highest in the country -- making the after-tax cost of ownership higher for top earners.

Tips for Minnesota Homebuyers and Homeowners

• Minnesota's homestead classification reduces the property tax rate applied to owner-occupied homes -- residential homestead properties pay significantly lower rates than non-homestead or commercial properties.
• The Minnesota Property Tax Refund (circuit breaker) provides a refund of up to $2,930 for homeowners whose property taxes exceed a specified percentage of household income -- this is available even to mid-income earners.
• Minnesota has a 'relative homestead' classification that extends homestead rates to properties owned by certain relatives of the occupant -- useful for family members helping with down payments.
• The state estate tax applies on estates over $3 million (the lowest exemption in the country among states with an estate tax), making Minnesota homeownership an important component of estate planning.

Minnesota Programs and Assistance

• Minnesota Housing Start Up Program -- below-market rate mortgages for first-time buyers, with income limits that adjust by county and family size.
• Minnesota Housing Step Up Program -- available to repeat buyers, particularly those purchasing in greater Minnesota or defined targeted areas.
• Monthly Payment Loan (MPL) -- provides down payment and closing cost assistance as a low-payment second mortgage, available alongside Minnesota Housing first mortgages.

Did you know? Minnesota has the lowest estate tax exemption of any state that has an estate tax at $3 million -- this means homeowners with a valuable home plus retirement accounts can easily fall into the estate tax net, making life insurance and trust planning important.