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Updated 2025 Tax Year

McLeod County
Property Tax Guide

Everything you need to know about property taxes in McLeod 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
Varies by jurisdiction, typically around 1% statewide average plus local overlays
1st Due
May 15
2nd Due
Oct 15
Exemptions
5+ Available
Section 1

How Property Tax Works

McLeod County, Minnesota operates under the state's property tax system, which serves as the primary funding mechanism for essential local services including public schools, county operations, municipal services, and special districts. Property taxes in McLeod County fund everything from road maintenance and public safety to libraries and parks. The county's property tax system is administered locally but follows Minnesota state guidelines, with taxes collected twice annually.

Property tax rates in McLeod County vary significantly by location within the county due to the overlay of multiple taxing jurisdictions including school districts, municipalities, townships, and special service districts. While Minnesota's statewide average effective tax rate is approximately 1%, actual rates in McLeod County can range from around 0.8% to over 1.5% depending on your specific tax district combination. Based on available data, McLeod County is expecting property tax increases, with 2026 rates projected to increase by 8.1% over previous years. The specific tax rate you pay depends on your property's location within various overlapping taxing districts, each with their own levy requirements.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
County General Levy0.15% - 0.25%County operations, roads, public safety
School District Levy0.45% - 0.75%Local school operations and facilities
Municipal/Township Levy0.10% - 0.35%City or township services
Special Districts0.05% - 0.20%Fire districts, library districts, other special services
Total Effective Rate0.75% - 1.55%Combined rate varies by location

Note: These rates are estimates based on typical Minnesota county configurations. Specific FY 2025-2026 levy year rates for McLeod County were not available in the provided data. Your actual tax rate depends on which school district, municipality/township, and special taxing districts serve your property. Contact the McLeod County Assessor's office at (320) 864-1233 for your specific district's current rates.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in McLeod 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 McLeod County are additional property tax bills issued when there are significant changes to a property during the tax year that affect its assessed value. Common triggers include new construction completion, major renovations that add square footage or significantly improve a property, ownership transfers that remove previous tax credits, or corrections to assessment errors discovered mid-year.

When supplemental taxes are issued, they cover the difference between what was already billed and what should have been billed based on the property's updated status. For example, if you complete a home addition worth $50,000 in June, you would receive a supplemental tax bill for roughly half the year (6 months) on the additional assessed value. If your total tax rate is 1.2%, the supplemental bill would be approximately ($50,000 × 1.2% × 6/12 months) = $300. Supplemental taxes follow the same payment schedule as regular property taxes and are typically due within 30 days of the bill date.

Example Calculation

Example 1: $300,000 Home with Homestead Credit

  • Market Value: $300,000
  • Homestead Credit Applied: Reduces taxable value by limiting assessment increases
  • Net Taxable Value: ~$285,000 (after homestead classification)
  • Tax Rate: 1.1% (example rate)
  • Annual Tax: $3,135
  • Monthly Escrow: $261

Example 2: $600,000 Home with Homestead Credit

  • Market Value: $600,000
  • Homestead Credit Applied: Caps assessment growth, must file application
  • Net Taxable Value: ~$570,000 (after homestead classification)
  • Tax Rate: 1.2% (example rate)
  • Annual Tax: $6,840
  • Monthly Escrow: $570

Example 3: $1,000,000 Home (No Credits)

  • Market Value: $1,000,000
  • No Credits Applied: Full commercial/non-homestead rate
  • Net Taxable Value: $1,000,000
  • Tax Rate: 1.4% (example higher rate for non-homestead)
  • Annual Tax: $14,000
  • Monthly Escrow: $1,167

Note: All tax credits require application and are not automatically applied. Homestead credits must be filed annually and primarily limit assessment increases rather than reducing market value.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in McLeod County require borrowers to establish property tax escrow accounts, where monthly payments include principal, interest, taxes, and insurance (PITI). Your lender collects approximately 1/12 of your annual property tax bill each month, depositing these funds into an escrow account. When tax payments are due in August and November, your lender pays the county directly from your escrow account.

Lenders are required to conduct annual escrow analyses to ensure adequate funds are collected. Since McLeod County property tax statements are mailed in March with payments due August 31 (first half) and November 15 (second half), lenders typically adjust escrow payments in January or February based on the new tax year's assessment. If your taxes increase significantly, you may face an escrow shortage requiring additional monthly payments or a lump sum payment. Property owners can verify their tax payments through the McLeod County website and should review their annual escrow statements to ensure accuracy.

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 McLeod County for FY 2025-2026? A: Property tax payments are due in two installments: first half by August 31st and second half by November 15th. Tax statements are mailed by March 31st each year.

Q: What tax credits are available and do I need to apply? A: Minnesota offers several tax credits including Homestead Credit, Senior Citizens Property Tax Deferral, and Disabled Veterans Credit. All credits require application and are not automatic. Contact the McLeod County Assessor at (320) 864-1233 for applications and deadlines.

Q: How does the Homestead Credit work? A: The Homestead Credit doesn't reduce your home's market value but provides preferential tax classification and caps assessment increases to protect against dramatic tax increases. You must file a homestead application to qualify, and it must be renewed periodically.

Q: When does the county reassess properties? A: Minnesota requires annual assessment updates, with physical inspections rotating through neighborhoods. The county assessor reviews all properties yearly but may physically inspect properties every 4-6 years or when permits are pulled.

Q: What are the penalties for late payment? A: Late payments incur interest charges and penalties. Contact McLeod County's tax collection office for current penalty rates and payment options if you're facing financial hardship.

Q: Can I pay my property taxes online? A: Yes, McLeod County typically offers online payment options. Check the county website or call (320) 864-1200 for available payment methods including electronic transfers and credit card payments.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the McLeod County Board of Appeal and Equalization, typically meeting in June. You can also appeal to the Minnesota Tax Court. Deadlines are strictly enforced, so contact the assessor's office immediately if you believe your assessment is incorrect.

Q: Why do tax rates vary within McLeod County? A: Your total tax rate combines levies from multiple jurisdictions: county, school district, city/township, and special districts (fire, library, etc.). Since these district boundaries don't align perfectly, neighboring properties may have different total tax rates depending on which districts serve them.

Verified Sources

Backed by 10 Official Government Sources

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

01
Tax Doc
Taxing Authority Tax Ratesmcleodcountymn.gov
02
Tax Doc
Preliminary Property Tax Levies for 2026revenue.state.mn.us
03
County
McLeod Countymcleodcountymn.gov
04
FAQsmcleodcountymn.gov
05
Due Datesmcleodcountymn.gov
06
Tax Doc
Property Tax Infomcleodcountymn.gov
07
eo_mn.csvirs.gov
08
Table of Contents – Module 4 Homesteadsco.mcleod.mn.us
09
Tax Doc
PROPERTY TAX House Omnibus Tax Bill Articles 2-3, 5, 8- ...revenue.state.mn.us
10
County
McLeod Countymcleodcountymn.gov
All sources verified as of 2025 Tax Year

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