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Updated 2025 Tax Year

Otter Tail County
Property Tax Guide

Everything you need to know about property taxes in Otter Tail 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
1.0% to 1.5% of assessed value for residential homestead properties, varies significantly by location and taxing districts within county
1st Due
May 15
2nd Due
Oct 15
Exemptions
5+ Available
Section 1

How Property Tax Works

Property taxes in Otter Tail County, Minnesota serve as the primary funding source for essential local services including schools, county operations, municipal services, and special districts. The county assessor determines property values based on market conditions, while various taxing authorities set levy rates to fund their operations. Property owners receive annual tax statements reflecting the combined levies from the county, cities/townships, school districts, and any applicable special taxing districts.

Effective tax rates in Otter Tail County typically range from 1.0% to 1.5% of assessed value for residential homestead properties, though actual rates vary significantly by location within the county. This variation occurs because different areas are served by different school districts, municipalities, and special taxing districts (such as watershed districts or economic development authorities), each with their own levy requirements. The Minnesota Department of Revenue oversees the assessment and taxation process, while individual property owners may qualify for various tax credits that can reduce their annual tax burden.

Section 2

What Makes Up Your Tax Bill

ComponentApproximate RateDescription
County General Fund0.35% - 0.45%County services, roads, law enforcement, administration
School District Operating0.45% - 0.65%Educational programs, transportation, facilities
Municipal/Township0.15% - 0.35%City/township services, infrastructure, public safety
School District Debt Service0.05% - 0.15%Voter-approved bonds for school facilities
Special Districts0.02% - 0.12%Watershed, economic development, other special assessments
Total Estimated Range1.02% - 1.72%Combined rate varies by specific location

Rates shown are for levy year 2025 (payable in 2025) and represent typical ranges for residential homestead properties. Actual rates vary by specific taxing districts within Otter Tail County. Non-homestead properties may be subject to higher rates.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Otter Tail 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 Otter Tail County are additional property tax bills issued when there are changes in property ownership, value, or use that occur after the annual assessment date but before the end of the tax year. Common triggers include new construction completion, property sales that reveal significantly different market values, changes from agricultural to residential use, or removal of tax-exempt status.

The supplemental tax is calculated as the difference between the original annual tax and what the tax would have been with the updated information, prorated for the remaining months in the tax year. For example, if a $100,000 home addition is completed in July and the local tax rate is 1.2%, the supplemental tax would be approximately $600 (the additional annual tax of $1,200 multiplied by 6/12 months remaining). Property owners receive a separate supplemental tax bill with specific due dates, typically 30 days from the bill date.

Example Calculation

Example 1: $300,000 Home with Homestead Credit

  • Market Value: $300,000
  • Homestead Credit Applied: Reduces taxable value to ~$270,000
  • Tax Rate: 1.15% (varies by location)
  • Annual Tax: $3,105
  • Monthly (if escrowed): $259

Example 2: $600,000 Home with Homestead Credit

  • Market Value: $600,000
  • Homestead Credit Applied: Reduces taxable value to ~$540,000
  • Tax Rate: 1.25% (varies by location)
  • Annual Tax: $6,750
  • Monthly (if escrowed): $563

Example 3: $1,000,000 Home with Homestead Credit

  • Market Value: $1,000,000
  • Homestead Credit Applied: Reduces taxable value to ~$900,000
  • Tax Rate: 1.35% (varies by location)
  • Annual Tax: $12,150
  • Monthly (if escrowed): $1,013

Note: Homestead and other tax credits require annual application and are not automatically applied. Credits shown are estimates and actual benefits vary.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Otter Tail County require property tax escrow accounts for loans with less than 20% down payment. Lenders collect monthly deposits equal to 1/12th of the estimated annual property tax bill, plus insurance premiums. These funds are held in a non-interest-bearing escrow account and used to pay tax installments when due. Lenders typically pay the first half by May 15th and second half by October 15th to avoid late penalties.

Property owners should verify that their lender has current tax information, especially after assessments change or tax credits are approved. At closing, buyers typically pay prorated taxes to the seller through the closing date, and the new escrow account begins collecting immediately. Lenders must provide annual escrow statements showing deposits, payments, and account balances, and may adjust monthly payments if tax amounts change significantly. Property owners can request to pay taxes directly once their loan-to-value ratio drops sufficiently, though lenders may require demonstration of timely payment ability.

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 Otter Tail County? A: For tax year 2025, property taxes are due in two installments: first half by May 15, 2025, and second half by October 15, 2025. Seasonal commercial recreational properties may have different due dates.

Q: What tax credits are available and do I need to apply? A: Common credits include Homestead Credit (requires primary residence), Senior Citizens Property Tax Deferral, Disabled Veterans Credit, and Agricultural Land Credit. Most credits require annual application by December 1st and are not automatically applied.

Q: How does the Homestead Credit work? A: The Homestead Credit limits assessment increases and provides classification benefits for your primary residence. You must apply annually and occupy the property as your principal residence by December 1st. It doesn't reduce market value but affects how your property is classified for tax purposes.

Q: When are properties reassessed? A: Otter Tail County conducts annual assessments with values reflecting market conditions as of January 2nd of each year. Assessment notices are typically mailed in March, with appeal deadlines in April.

Q: What are the penalties for late payment? A: Late payments incur penalties and interest charges. First half payments made after May 15th and second half payments after October 15th are subject to penalties starting at 3% plus monthly interest charges.

Q: Can I pay property taxes online? A: Yes, Otter Tail County offers online payment options through their website using bank account transfers or credit/debit cards. Transaction fees may apply for credit card payments.

Q: How do special district taxes affect my bill? A: Special districts like watershed districts, economic development authorities, or lake improvement districts can add additional taxes. These vary by specific property location within the county and fund specialized local services.

Q: What if I disagree with my property assessment? A: Property owners can appeal assessments to the local Board of Appeal and Equalization, typically meeting in April. Appeals must be filed by specific deadlines, usually within 30 days of receiving assessment notices.

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
Property Tax Informationpropertysearch.ottertailcounty.gov
02
Tax Doc
Property Tax 101: Property Tax Variation by Property Typehouse.mn.gov
03
Tax Doc
Classification Rates for Taxes Payable in 2025revenue.state.mn.us
04
County
Otter Tail County Property Taxnacdashboard.nara.gov
05
Tax Doc
Property Taxes Due Datesottertailcounty.gov
06
Tax Doc
Penalty Schedule for Late Payment of Property Taxes 2021ottertailcounty.gov
07
eo_mn.csvirs.gov
08
State
State & Federal Servicesottertailcounty.gov
09
Tax Doc
PROPERTY TAX House Omnibus Tax Bill Articles 1 and 4 ...revenue.state.mn.us
10
County
Property Tax - Otter Tail County, MNottertailcounty.gov
All sources verified as of 2025 Tax Year

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