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Updated 2025 Tax Year

Houston County
Property Tax Guide

Everything you need to know about property taxes in Houston County, MN. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
Approximately 1% of market value, varies by taxing districts including schools, county, and special service areas
1st Due
May 15
2nd Due
Oct 15
Exemptions
5+ Available
Section 1

How Property Tax Works

Houston County, Minnesota operates under the state's property tax system to fund essential local services including schools, roads, public safety, and county operations. Property taxes are calculated based on the assessed value of your property multiplied by the applicable tax rate, which varies by location within the county due to different combinations of taxing districts.

The effective tax rate in Houston County typically ranges around 1% of market value, though this can vary significantly based on your specific location and the special taxing districts that serve your property. These districts may include school districts, watershed districts, and other special service areas. Property owners should note that tax rates are set annually during the budget process, and the 2025 tax rates will be finalized by the County Board following their budget adoption.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General LevyTBDBasic county services, administration, public safety
School District LevyVaries by districtLocal school funding, varies by school district location
Municipal LevyVaries by cityCity services (applies only to properties within city limits)
Township LevyVaries by townshipTownship services for rural properties
Special DistrictsVariesWatershed districts, library districts, other special assessments

Note: 2025 levy year rates are not yet finalized and will be set during the county's annual budget process. Actual rates vary significantly by location within Houston County based on which combination of taxing districts serve your property. Contact the Houston County Assessor's Office for specific rates applicable to your property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Houston County, property taxes are due in two installments:

First Installment
May 15
Delinquent after Dec 10
Second Installment
Oct 15
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Houston County are additional tax bills issued when there are changes to property ownership, new construction, or other assessable improvements that occur after the annual assessment date. These taxes cover the difference between what was originally assessed and what should have been assessed for the portion of the tax year affected by the change.

For example, if you complete a home addition worth $50,000 in March, but the annual assessment was completed in January, you would receive a supplemental tax bill for the additional taxes owed on that $50,000 improvement for the remaining months of the tax year. The supplemental tax is calculated by applying the current year's tax rate to the additional assessed value, prorated for the time period the improvement was in place.

Example Calculation

Example 1: $300,000 Home with Homestead

  • Market Value: $300,000
  • Homestead Market Value Exclusion: $33,200 (requires application)
  • Net Taxable Value: $266,800
  • Estimated Tax Rate: 1.0%
  • Annual Tax: $2,668
  • Monthly Escrow: $222

Example 2: $600,000 Home with Homestead

  • Market Value: $600,000
  • Homestead Market Value Exclusion: $33,200 (requires application)
  • Net Taxable Value: $566,800
  • Estimated Tax Rate: 1.0%
  • Annual Tax: $5,668
  • Monthly Escrow: $472

Example 3: $1,000,000 Non-Homestead Property

  • Market Value: $1,000,000
  • No Homestead Credit (investment/secondary property)
  • Net Taxable Value: $1,000,000
  • Estimated Tax Rate: 1.0%
  • Annual Tax: $10,000
  • Monthly Escrow: $833

Note: These examples use estimated rates. Actual rates vary by specific location and taxing districts. Most credits require annual application and are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Houston County require property tax escrow accounts to ensure timely payment of property taxes. Your lender collects 1/12th of your estimated annual property tax bill with each monthly mortgage payment and holds these funds in an escrow account. The lender then pays your property taxes directly to Houston County when they become due.

Property taxes in Houston County are paid in two installments: the first half is due August 1st, and the second half is due November 1st. Your lender will typically pay these on your behalf if you have an escrow account. You should receive an escrow analysis annually showing how your payments are calculated and any adjustments needed based on actual tax bills versus estimates. If your property taxes increase significantly due to reassessment or rate changes, your monthly escrow payment may need to be adjusted accordingly.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Houston County? A: Property taxes are due in two installments: first half by August 1st and second half by November 1st for the current tax year.

Q: What homestead credits are available and how do I apply? A: The Homestead Market Value Exclusion provides up to $33,200 in market value exclusion for owner-occupied primary residences. You must file an application with the Houston County Assessor's Office. This credit limits assessment increases and requires annual verification of occupancy.

Q: Is the homestead credit automatic? A: No, you must apply for the homestead classification with the County Assessor's Office. The application typically must be filed by December 15th to be effective for the following assessment year.

Q: How often are properties reassessed? A: Minnesota law requires properties to be assessed annually, with physical inspections occurring on a cyclical basis. You will receive a notice if your assessment changes significantly.

Q: What if I disagree with my assessment? A: You can appeal your assessment to the Houston County Board of Appeal and Equalization, typically meeting in April. You must file your appeal by the specified deadline shown on your assessment notice.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest charges. Contact the Houston County Treasurer's Office for specific penalty rates and collection procedures.

Q: Can I pay my property taxes online? A: Check with the Houston County Treasurer's Office for available online payment options and accepted payment methods.

Q: Why do tax rates vary within Houston County? A: Different areas are served by different combinations of school districts, municipalities, townships, and special districts, each with their own levy rates that combine to create your total tax rate.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
County
2025 Approved Fee Schedule - Houston Countyco.houston.mn.us
02
County
Auditor-Treasurer - Houston Countyco.houston.mn.us
03
County
Land Value Changes for 2025 - Houston Countyco.houston.mn.us
04
Tax Doc
Property Tax Law Summaryrevenue.state.mn.us
05
County
Public Notices - Houston Countyco.houston.mn.us
06
County
Assessor - Houston Countyco.houston.mn.us
07
County
Houston County Board of Adjustmentco.houston.mn.us
08
Sec. 273.124 MN Statutesrevisor.mn.gov
09
Tax Doc
Property Tax Analysisrevenue.state.mn.us
10
HOUSE OF REPRESENTATIVES​ - MN Revisor's Officerevisor.mn.gov
All sources verified as of 2025 Tax Year

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