Overview of Dakota County, MN Taxes
Tax rates in Dakota County, Minnesota are on par with national averages. The average effective property tax rate in Dakota County is 1.17%, compared to the 0.99% U.S. average.
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To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
To calculate the exact amount of property tax you will owe requires your property's assessed value and the property tax rates based on your property's address. Please note that we can only estimate your property tax based on median property taxes in your area. There are typically multiple rates in a given area, because your state, county, local schools and emergency responders each receive funding partly through these taxes. In our calculator, we take your home value and multiply that by your county's effective property tax rate. This is equal to the median property tax paid as a percentage of the median home value in your county.
Dakota County Property Tax Rates
Dakota County residents pay an average of $3,271 in property taxes annually. This amount is a bit higher than the median property tax payment of $2,915 in Minnesota itself. Minnesota’s overall state average effective rate is 1.02%.
The median home value in Dakota County is $280,300. This is slightly lower than the state’s median home value of $285,400, though almost as high as the national value of $281,400.
The revenue that results from residents’ annual property tax payments goes toward public funding for the state, Dakota County and its local jurisdictions too.
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Paying Your Dakota County Property Taxes
In Dakota County, you’ll pay your annual property taxes in the form of two installments. In most cases, these installments will be due by May 15 and October 15 of each year.
In the case of manufactured home properties, you’ll need to pay your installments by August 31 and November 16. Agricultural property due dates are May 15 and November 16.
Dakota County residents have a range of payment methods to choose from when taking care of their tax bills. They can pay online or enroll in Dakota County's free automatic payment system at the County website. Phone payments are possible (although convenience fees apply), as well paying via mail. Residents can also use one of Dakota County’s three drop boxes if they don’t mind not getting a receipt.
How Your Dakota County Property Tax Works
Property taxes are calculated in two different ways. The county levies property taxes based on both market value and net tax capacity. In the case of the market value-based portion of your property taxes, your home’s market value will directly determine the amount you pay. This amount will add together with your net tax capacity-based total to result in your net tax.
The calculation for a property’s net tax capacity is a little more complicated. This is based on your home’s market value after any market value exclusions have been subtracted. The Homestead Value Exclusion is an example of a common exclusion that would be subtracted when your net tax capacity is calculated.
If your home is valued at $76,000 or under, your Homestead Market Value Exclusion is 40% of the home’s market value. From home values of $76,000 to $413,800, your Homestead Market Value Exclusion would be $30,400 minus 9% of the home’s value over $76,000. If your home is worth more than $413,000, your property doesn’t qualify for the Homestead Exclusion.
To finish calculating your net tax capacity, the resulting amount after exclusions are subtracted is multiplied by the property’s class rate. In the case of a residential homestead, this rate will be 1% for the first $500,000 of the home’s value and a rate of 1.25% for any leftover value beyond $500,000.
What sets market value? Your home’s market value is an estimate of what the property would sell for in current market conditions in Dakota County. Assessors look at market value over the course of the year to set market value every January.
The process of determining property market values boils down to a few key steps. First, assessors have to take a look at the property in question. Properties with a recent building permit are subject to an assessment for the following January. Otherwise, the property will need an updated assessment every five years at minimum.
When assessors take a look at the property, they collect data to be used in calculating market value. This often includes measures of the property’s age, condition, size and other added features like finished basements or fireplaces. Assessors combine this data with analysis of surrounding home sales to reach an appropriate market value.
Your Dakota County property tax rates can vary based on how the Assessor’s Office classifies your property. Whether or not your property is considered residential homestead, residential non-homestead commercial or agricultural can all lead to varying property taxes rates. Different classifications are subject to different percentages of the property’s market value.
State law requires that assessors do regular assessments for properties in Dakota County to account for changing market conditions and other factors. Changes like land clearing, nearby street or infrastructure improvements or recent remodeling can also give property market values a boost.
The Minnesota State Board of Assessors sets requirements for appraisers working with the Assessor’s Office to make sure their training, experience and licenses are consistent and in good standing.
Places Receiving the Most Value for Their Property Taxes
SmartAsset’s interactive map highlights the places across the country where property tax dollars are being spent most effectively. Zoom between states and the national map to see the counties getting the biggest bang for their property tax buck.
Methodology
Our study aims to find the places in the United States where people are getting the most value for their property tax dollars. To do this, we looked at property taxes paid, school rankings and the change in property values over a five-year period.
First, we used the number of households, median home value and average property tax rate to calculate a per capita property tax collected for each county.
As a way to measure the quality of schools, we analyzed the math and reading/language arts proficiencies for every school district in the country. We created an average score for each district by looking at the scores for every school in that district, weighting it to account for the number of students in each school. Within each state, we assigned every county a score between 1 and 10 (with 10 being the best) based on the average scores of the districts in each county.
Then, we calculated the change in property tax value in each county over a five-year period. Places where property values rose by the greatest amount indicated where consumers were motivated to buy homes, and a positive return on investment for homeowners in the community.
Finally, we calculated a property tax index, based on the criteria above. Counties with the highest scores were those where property tax dollars are going the furthest.
Sources: US Census Bureau 2018 American Community Survey, Department of Education
