Where Minnesota homeowners face the steepest property tax levy increase

Minnesota property tax statements examined

Property owners across Minnesota are learning the estimates of what they could owe in taxes next year. FOX 9’s Soyoung Kim takes a closer look at which areas homeowners may feel the largest impact.

(FOX 9) - The Minnesota Department of Revenue (MDR) data shows statewide property tax levies could increase by up to 6.9%, but some residents could be seeing higher jumps than others.

Largest tax impacts across Minnesota

Big picture view:

The MDR says property tax levies could increase by a total of up to $1 billion for next year. A final tax bill factors in levies from multiple units of local government.

Local perspective:

Homeowners may feel the largest impacts in some areas where city and/or county tax levies are jumping by double digits.

At the county level, every single county in the state is proposing increasing property tax levies for 2026.

More than a dozen counties are proposing double-digit increases.

Many cities also have preliminary levies showing a meaningful double-digit increase:

• Otsego is proposing a roughly 19% tax levy increase.
• Arden Hills is proposing a roughly 18% increase. Lino Lakes is proposing a roughly 16% increase.
• St. Francis is proposing a roughly 16% increase.
• Crystal is proposing a roughly 15% increase.
• Hennepin County is proposing a nearly 8% tax levy increase.

What they're saying:

Many city and county officials point to rising operating costs and decreasing revenue or funding for some of the reasons behind the need for higher levies.

"We have a financial responsibility to our residents and taxpayers to provide essential services while also being mindful of tax burden on their lives," said Commissioner Debbie Goettel, who chairs the committee in charge of the budget process. "We are focused on stability and sustainability and utilizing strategies to help us prepare for future funding risks at the federal and state levels."

The City of St. Francis administrator said looking at the 2026 payable year, there are three main issues putting pressure on the city’s tax levy. These factors include rising operating costs, slow growth, and shifting of an annual stormwater invoice on the levy.

"Overall, the city is no different than the businesses and residents we are here to serve, and the city is facing the same increasing pressures. We have had internal discussions on what can be completed more efficiently or at a lower cost to keep increases as low as possible and the stormwater process, as it looks bad this year, is an example of that. Each staff member is working to do more for less, but feels the struggles of increasing costs, regulations, and policies.  Without cutting significant services, we are in a difficult position of having to raise the levy," said Kate Thunstrom, City Administrator for St. Francis.

What's next:

Truth-in-taxation meetings are the next step before local governments set final levies by Dec. 29.