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Updated 2025 Tax Year

Lyon County
Property Tax Guide

Everything you need to know about property taxes in Lyon 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
1.0088% base rate (varies by municipality and special districts within Lyon County)
1st Due
May 31
2nd Due
Oct 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Lyon County, Minnesota operates under a property tax system that funds essential local services including schools, roads, public safety, and county operations. Property taxes are levied annually based on the assessed value of real estate as of January 1st, with tax notices mailed in March. The effective tax rate for Lyon County is approximately 1.0088% for the 2025 levy year, though this represents a baseline rate that can vary significantly depending on your specific location within the county.

Actual tax rates vary by municipality and special taxing districts within Lyon County. Properties may be subject to additional levies from school districts, watershed districts, and other special assessment areas, which can increase the total effective rate. The county experienced a 4.990% increase in total property tax levy from 2024 to 2025, reflecting growing demands for public services and infrastructure maintenance.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County General~0.45%Basic county services, roads, administration
School District~0.35%K-12 education funding (varies by district)
Township/City~0.15%Municipal services, local infrastructure
Special Districts~0.05%Watershed, fire protection, other special services
Total Base Rate~1.0088%FY 2025 average effective rate

Note: These rates apply to the 2025 levy year and represent county averages. Actual rates vary by specific location within Lyon County due to different school districts, municipalities, and special taxing districts. Properties in areas with bond issues or special assessments may see higher total rates.

Section 3

When Are Property Taxes Due?

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

First Installment
May 31
Delinquent after Dec 10
Second Installment
Oct 31
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 Lyon County are triggered by significant changes to property ownership or improvements that occur after the January 1st assessment date. Common triggers include new construction, completed additions or renovations, ownership transfers that remove exemptions, or the discovery of previously unreported improvements.

Supplemental taxes are calculated by applying the current year's tax rate to the difference between the original assessed value and the new assessed value. For example, if you complete a $100,000 home addition mid-year, and the county's effective rate is 1.0088%, you would owe approximately $1,009 in supplemental taxes for the remainder of that tax year. These supplemental bills are issued separately from regular tax notices and typically have payment deadlines 30 days from the bill date.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value: $300,000
  • Less: Homestead Credit: -$76,000 (applied to taxable value)
  • Net Taxable Value: $224,000
  • Annual Tax: $224,000 × 1.0088% = $2,260
  • Monthly Escrow: $188

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value: $600,000
  • Less: Homestead Credit: -$76,000 (applied to taxable value)
  • Net Taxable Value: $524,000
  • Annual Tax: $524,000 × 1.0088% = $5,286
  • Monthly Escrow: $441

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value: $1,000,000
  • Less: Homestead Credit: -$76,000 (applied to taxable value)
  • Net Taxable Value: $924,000
  • Annual Tax: $924,000 × 1.0088% = $9,321
  • Monthly Escrow: $777

Note: Homestead credit requires annual application and caps assessment increases rather than reducing market value. Additional credits may be available for seniors, veterans, or disabled persons but require separate applications.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Lyon County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender collects 1/12 of your estimated annual property tax with each monthly mortgage payment, depositing these funds into an escrow account. The lender pays your property taxes directly to Lyon County when due - first half in March and second half by November 15th.

Lenders are required to provide annual escrow statements showing collections, payments, and account balances. If your property taxes increase, your monthly escrow payment will be adjusted accordingly, typically with 60 days notice. You can verify escrow payments by checking Lyon County's online payment system or contacting the County Treasurer's office. Property owners are ultimately responsible for ensuring taxes are paid on time, even when using escrow services.

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 Lyon County property taxes due for FY 2025? A: First half payment is due in March 2025, and the second half is due November 15, 2025. Tax notices are mailed in March with specific due dates.

Q: What tax credits are available and do I need to apply? A: Minnesota Homestead Credit is the primary credit, requiring annual application by December 31st. Senior citizens, veterans, and disabled persons may qualify for additional credits, but all require separate applications - none are automatic.

Q: How does the Homestead Credit work? A: The Homestead Credit doesn't reduce your home's market value but limits how much your taxable value can increase each year (typically to 10% annually). You must file an application with the county assessor by December 31st each year.

Q: When are properties reassessed in Lyon County? A: Properties are assessed annually as of January 1st. Assessment notices are typically mailed in March. You have 30 days from the notice date to appeal your assessment.

Q: What are the penalties for late property tax payments? A: Late payments incur interest charges and penalties. Contact Lyon County Treasurer's office for current penalty rates and payment options.

Q: Can I pay property taxes online? A: Yes, Lyon County typically offers online payment options through their official website. Check with the County Treasurer for accepted payment methods and any associated fees.

Q: Why did my tax bill increase if my home value stayed the same? A: Tax increases can result from higher levy rates set by the county, school districts, or special taxing districts, even if your property value remains constant.

Q: How do special district taxes work? A: Properties may be subject to additional levies from school districts, watershed districts, or municipal bonds. These vary by location within Lyon County and are itemized on your tax statement.

Verified Sources

Backed by 10 Official Government Sources

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

01
BUDGET PUBLIC INFORMATION MEETING “TRUTH IN ...co.nobles.mn.us
02
County
2025 COUNTY SCREENING BOARD DATAlrl.mn.gov
03
Preliminary Levy Changes for CY 2025revenue.state.mn.us
04
County
Lyon County Financial Statements and Management Letterosa.state.mn.us
05
Tax Doc
Property Tax Calendar for Property Ownersrevenue.state.mn.us
06
Tax Doc
Minnesota Tax Handbooklrl.mn.gov
07
eo_mn.csvirs.gov
08
County
County Websites / mn.gov // Minnesota's State Portalmn.gov
09
swpgrantshealth.state.mn.us
10
CITY OF GHENT, MINNESOTA FINANCIAL ... - City of Ghent, MNghentmn.gov
All sources verified as of 2025 Tax Year

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