MN · #22 by population

Buying a home in Minnesota

Costs and rules that are specific to Minnesota. Main city: Minneapolis.

In short

Minnesota taxes property sales through its state deed tax, does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and is not a community property state.

Calculate for Minnesota

If you buy

Minnesota state transfer tax

State deed tax (Minn. Stat. 287.21): 0.33% of net consideration when over $3,000; flat $1.65 for $3,000 or less. Change the price: the amount is recalculated instantly.

Price$344,600
State transfer tax$1,137.18
Share of the price0.33% of the price
Who paysThe seller

Default price: the Minnesota median value of owner-occupied homes, $344,600 (Census ACS 2024). Rule: 0.33% of net consideration (price minus any lien or mortgage that stays on the property) when consideration is over $3,000. A flat $1.65 applies to consideration of $3,000 or less, no consideration, and certain mergers and designated transfers. Who pays: The grantor is liable for the deed tax (287.24), so by law the seller owes it. The mortgagor (borrower) is liable for the mortgage registry tax (287.035). A purchase agreement may shift costs between the parties. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Minnesota transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Minnesota state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Minnesota in short

Is there a real estate transfer tax in Minnesota?

Minnesota calls its transfer tax a deed tax: 0.33% of the net consideration when a deed is recorded, plus a mortgage registry tax of 0.23% of a new loan. Hennepin County adds 0.01% to each. By law the seller owes the deed tax and the borrower the mortgage tax.

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How much is the state transfer tax on a $344,600 home in Minnesota?

On $344,600, the median value of owner-occupied homes in Minnesota (Census ACS 2024), the state state deed tax comes to $1,137.18 (0.33% of net consideration when over $3,000). County and city taxes are not included.

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What closing costs does Minnesota law set?

Minnesota has no official typical closing-cost total. In Hennepin County the seller owes a 0.34% deed tax and a borrower owes a 0.24% mortgage registry tax, plus a $46 recording fee per document and a $5 conservation fee.

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How is property tax calculated in Minnesota?

Minnesota values a home each year as of January 2 and taxes a share set by property class: a homestead is taxed at 1% of its first $500,000 of taxable value after a market value exclusion of up to $38,000.

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What is the deadline to appeal a property tax assessment in Minnesota?

In Minnesota, if you disagree with your valuation notice you can appeal to the local board of appeal and equalization (it meets between April 1 and May 31), then the county board (mid-June in Hennepin County), or petition the Tax Court or district court by April 30 of the year the tax is payable.

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Do you need a real estate attorney to close in Minnesota?

Minnesota does not require an attorney at a home closing: Minn. Stat. 507.45 lets a licensed attorney, real estate broker, salesperson or real estate closing agent provide closing services for a fee, with the fee disclosed in writing at least five business days before closing.

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What must a home seller disclose in Minnesota?

A Minnesota seller of residential property must give the buyer a written disclosure of all material facts the seller knows before signing the sale agreement (Minn. Stat. 513.55). A buyer harmed by a missed disclosure has two years after closing to sue.

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How does foreclosure work in Minnesota?

Most Minnesota foreclosures are non-judicial, using the power of sale in the mortgage under chapter 580 with six weeks of published notice and a sheriff's sale. After the sale the homeowner usually has a six-month redemption period, and no deficiency judgment is allowed in that case.

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What first-time home buyer programs does Minnesota offer?

In Minnesota, Minnesota Housing's Start Up program lets a household of three or more earn up to $151,200 in the 11-county Twin Cities area and buy a home priced up to $515,200, with down payment and closing cost loans of up to $18,000.

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How much tax when you sell a home in Minnesota?

The federal rule is the same in Minnesota as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Minnesota income tax on the gain is not computed here.

Capital gains on a home sale

Minnesota guides

Minneapolis

Buying a home in Minneapolis, Minnesota

Professionals in Minnesota

All states · Federal guides