Taxes to Increase by Millions Across Minnesota Next Year

St. Paul, MN (KROC-AM News)- Tax collections across Minnesota are set to increase by millions of dollars next year. 

See Also: The Wealthiest Minnesotans Live in These 10 Counties 

That’s according to the Minnesota Department of Revenue (MDR). The forecasted tax increase is the result of preliminary 2025 budgets proposed by local governments across the state. 

Each year city councils, county boards, school district and township boards submit their preliminary property tax levy increases to the MDR. 

What Do Property Taxes Pay For in Minnesota?

Local government units rely on property taxes to fund police, fire, schools, libraries and other public services, according to MDR.

All local governments submit their proposed maximum property tax increase to the state in November. 

MDR’s property tax collection also includes referendums that voters across the state approved for school district’s during the Nov. 5 election. 

How Much Could Property Taxes Go Up in Minnesota Next Year?

The combined preliminary total for maximum 2025 property taxes collected by all of Minnesota’s cities is $3.737 billion. That’s more than $300 higher than 2024, or an 8% increase from $3.434 billion. 

Minnesota’s 87 counties are set to collect a maximum combined total of $4.216 billion in property taxes next year. That’s up 6.4% or over $250 million when compared to the $3.962 billion collected this year. 

School Districts across Minnesota are set to collect as much as $177 million more in property taxes next year if all the maximum levies were to pass. MDR says school district tax levies could increase by as much as 4.4% from $3.979 billion in 2024 to $4.156 billion next year. 

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Townships and special tax districts across the state are poised to increase property tax collections by as much as $28 million in 2025 if all the maximum tax levy increases are certified. 

In all local government property tax collections could be as high as $781 million, according to MDR figures. 

Local governments have the option of voting to bring down the proposed property tax increase for 2025 before officially certifying their budgets before the end of the year.