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Updated 2025 Tax Year

Steele County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
1.00% base rate for residential homestead, varies significantly by taxing districts and location
1st Due
May 15
2nd Due
Oct 15
Exemptions
5+ Available
Section 1

How Property Tax Works

Steele County, Minnesota operates on a property tax system that funds essential local services including county government operations, schools, roads, and public safety. Property taxes are the primary revenue source for these services, with the tax calculated based on your property's assessed value multiplied by the applicable tax rate. The county's effective tax rate for residential homestead properties is approximately 1.00% as of the 2025 levy year, though this represents a baseline that can vary significantly based on your specific location.

Your actual property tax rate depends on which special taxing districts serve your property, including school districts, watershed districts, and municipal assessments. These additional levies can substantially impact your total tax bill, making it important to understand all the taxing jurisdictions that apply to your specific property location within Steele County.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
Base County Levy~0.30%Core county services, administration, public safety
School District Levy~0.50%Local school operations and debt service
Municipal Levy~0.15%City/township services (varies by municipality)
Special Districts~0.05%Watershed, library, other special assessments
Total Residential Rate~1.00%Combined rate for homestead properties

Rates shown are for the 2025 levy year and represent typical ranges. Actual rates vary by specific location within Steele County based on which taxing districts serve your property. Commercial and industrial properties may have different classification rates. Contact the Steele County Assessor's Office for exact rates applying to your specific property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Steele 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 Steele County are additional property tax assessments that occur when there's a change in property ownership, new construction, or improvements that increase the assessed value after the annual assessment date. These taxes are calculated on a pro-rated basis for the portion of the tax year remaining after the change occurs.

For example, if you purchase a home in Steele County in March and the previous assessment didn't reflect recent improvements worth $50,000, you might receive a supplemental tax bill. The calculation would take the additional assessed value ($50,000), multiply by the applicable tax rate (approximately 1.00%), then pro-rate for the remaining 9 months of the tax year: ($50,000 × 0.01 × 9/12 = $375). This supplemental amount would be due in addition to the regular property tax payments.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Homestead Credit Applied: -$15,000 (estimated, requires application)
  • Net Taxable Value: $285,000
  • Annual Tax (1.00% rate): $2,850
  • Monthly Escrow: $238

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Homestead Credit Applied: -$25,000 (estimated, requires application)
  • Net Taxable Value: $575,000
  • Annual Tax (1.00% rate): $5,750
  • Monthly Escrow: $479

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • Homestead Credit Applied: -$30,000 (estimated, requires application)
  • Net Taxable Value: $970,000
  • Annual Tax (1.00% rate): $9,700
  • Monthly Escrow: $808

Note: Homestead credits require annual application and are not automatic. Credit amounts are estimates and actual benefits vary. Contact the Steele County Assessor's Office for specific credit calculations and application requirements.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Steele County require property tax escrow accounts, where you pay 1/12 of your annual property tax bill with each monthly mortgage payment. The lender holds these funds in escrow and pays your property taxes directly to the county when due. Lenders typically collect an initial escrow deposit at closing equal to 2-3 months of property tax payments to ensure adequate funds are available.

Your lender will provide an annual escrow analysis statement showing the previous year's tax payments and any adjustments needed for the coming year. Since property taxes can change annually due to assessment changes or rate adjustments, your monthly escrow payment may increase or decrease. You can verify that your lender has paid your taxes correctly by checking your property's payment status on the Steele County website or contacting the County Treasurer's Office directly.

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 Steele County for 2025? A: Property taxes for the 2025 levy year are typically due in two installments: May 15, 2025 for the first half, and October 15, 2025 for the second half. January 1 is when taxes become a lien on the property.

Q: What homestead tax credits are available and do I need to apply? A: The residential homestead credit is the primary tax credit available, which caps annual assessment increases and provides reduced classification rates. This credit requires annual application and is NOT automatic - you must file with the Steele County Assessor's Office by December 15.

Q: How does the homestead credit work exactly? A: The homestead credit doesn't reduce your home's market value, but rather limits how much your taxable assessment can increase each year (typically capped at 10% annually) and provides a preferential tax classification rate for owner-occupied properties.

Q: Are there credits for disabled or elderly homeowners? A: Yes, blind/disabled homestead classification provides reduced rates on the first $50,000 of taxable value for qualifying individuals. Senior citizens may qualify for additional property tax deferrals. Both require application through the County Assessor's Office.

Q: When does the county reassess properties? A: Steele County conducts annual assessments with values determined as of January 2 each year. Assessment notices are typically mailed in March, with appeal deadlines usually in April or May.

Q: What happens if I pay my taxes late? A: Late payments incur penalty charges and interest. First-half payments made after May 15 and second-half payments after October 15 are subject to penalties that compound monthly until paid in full.

Q: Can I pay my property taxes online? A: Yes, Steele County typically offers online payment options through their official website. Contact the County Treasurer's Office for current online payment methods and any associated convenience fees.

Q: How do special district taxes affect my bill? A: Special districts (school bonds, watershed districts, municipal assessments) add to your base county tax rate. Your total rate depends on which districts serve your specific property location, which is why rates vary throughout the county.

Q: What if I disagree with my property assessment? A: You can appeal your assessment by contacting the Steele County Assessor's Office within the appeal period (typically 30 days after assessment notices are mailed). Formal appeals may require appearing before the local Board of Appeal and Equalization.

Q: Do agricultural properties get different tax treatment? A: Yes, agricultural properties may qualify for special agricultural classification rates and programs like Green Acres, which can provide significant tax relief. These programs require separate applications and compliance with specific agricultural use requirements.

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