Minnesota’s deed tax is administered by the Minnesota Department of Revenue and collected by each county recorder or registrar at the time of recording. No deed can be recorded until the tax is paid. The grantor (seller) bears the legal obligation, though closing agents typically handle collection and payment as part of the settlement. Like Kentucky and Arkansas, there is no separate state annual filing — the entire obligation is satisfied at the recording counter. Unlike those states, however, Minnesota’s tax base is reduced, not increased, by assumed mortgage debt, making net-consideration calculation the most important step in the process.
1 Determine the Net Consideration
The tax base for Minnesota’s deed tax is the net consideration — defined in § 287.21 as the total value given for the property minus the value of any liens or encumbrances that are not satisfied by the sale.[1] The Department of Revenue explains: “Net consideration means the consideration for the conveyance minus the value of any lien or encumbrance remaining on the property after the conveyance.”[6] This is an essential and easily misunderstood feature of Minnesota deed tax. When a buyer assumes an existing mortgage rather than requiring the seller to pay it off at closing, that assumed debt reduces the taxable base, because the buyer is receiving a property encumbered by that debt.
For a standard all-cash sale with no assumed debt, net consideration equals the full sale price. For sales involving a purchase-money mortgage that the seller is taking back (a seller-financed loan), that mortgage is not deducted — it is consideration given by the buyer. Only pre-existing encumbrances that pass through to the buyer without being discharged reduce the net consideration.
Net Consideration = Sale Price − Assumed Liens / Mortgages Not Satisfied at Closing (§287.21 — “net consideration” = total consideration less liens not satisfied by the sale) Seller-financed purchase-money mortgages are NOT deducted — they are part of consideration Gifts / zero-consideration transfers → net consideration = $0 → minimum tax applies
Example A — $200,000 Sale in Hennepin County, No Assumed Debt
A buyer purchases a home in Hennepin County for $200,000 cash. The seller’s existing mortgage is paid off at closing from sale proceeds.
Net Consideration: $200,000 − $0 = $200,000
Example B — $250,000 Sale in Dakota County with $100,000 Assumed Mortgage
A buyer pays $150,000 in cash for a Dakota County property and takes title subject to an existing $100,000 mortgage, which the seller is not required to pay off. The buyer formally assumes the lien.
Net Consideration: $250,000 − $100,000 = $150,000
The seller received $150,000 in cash, but the total deal value is $250,000. For Minnesota deed tax purposes, the tax base is $150,000 because the buyer did not receive clear, unencumbered title worth the full $250,000.
2 Check for Exemptions and Designated Transfers
Minnesota’s deed tax has two distinct “reduced obligation” categories that the calculator handles differently: exempt transfers (zero tax under § 287.22) and designated transfers (taxable but at the flat minimum under § 287.21).[7] This distinction matters enormously in practice and is a common source of confusion.
Exempt Transfers — §287.22 (Zero Tax)
Transfers that fall within one of the enumerated exemptions in § 287.22 owe no deed tax at all. The deed must still be recorded and the $46.00 recording fee still applies. To claim an exemption, the basis (e.g. “Exempt under Minn. Stat. §287.22(14)”) must be noted on the deed itself, and supporting documentation should be attached where applicable.[7] The thirteen exemption categories recognized by the calculator are:
- Mortgage, Assignment, or Release of Mortgage (§287.22(3)) — Security instruments are not conveyances of real property for deed tax purposes and are fully exempt. This is the most frequently recorded document type after deeds.
- U.S. Government / Federal Agency Transfer (§287.22(7)) — Any conveyance to or from the United States government or a federal agency or instrumentality is exempt. State government transfers are generally not exempt.
- Personal Representative / Executor Distribution (§287.22(9)) — Distribution deeds from a decedent’s estate signed by the personal representative or executor. Attach certified letters testamentary or letters of general administration.
- Partition Deed Between Co-Owners (§287.22(10)) — Division of jointly owned property among the existing co-owners in proportion to their interests. No new consideration changes hands; no tax is due.
- Sheriff’s Certificate of Sale / Owner Redemption Certificate (§287.22(11)) — Documents issued in a mortgage foreclosure — the sheriff’s certificate given to the successful bidder, and the certificate of redemption when the original owner exercises the right of redemption — are both exempt. Important exception: a creditor’s redemption certificate (issued when a junior lienholder redeems the property) is NOT exempt and is taxable as a deed.
- Easement (§287.22(13)) — Instruments conveying an easement interest are exempt from deed tax.
- Divorce Decree / Judgment-Related Deed (§287.22(14)) — Deeds executed pursuant to a dissolution of marriage, legal separation, or other court judgment directing transfer of property. Attach a copy of the decree.
- Transfer-on-Death Deed (§287.22(15)) — TOD (beneficiary) deeds are exempt at execution. The actual transfer at the grantor’s death may be subject to deed tax at that time.
- Executory Contract — Purchaser in Possession (§287.22(1)) — When a buyer is already in possession under a contract for deed, the formal conveyance is exempt. Deed tax was (or will be) due when the final deed delivers title.
- Lease (§287.22(5)) — Lease instruments are exempt regardless of term.
- Cemetery Deed (§287.22(8)) — Deeds conveying cemetery lots or burial rights are exempt.
- Plat (§287.22(4)) — Plat filings are exempt from deed tax. Note: the recording fee for a plat is $56.00, not $46.00.
Designated Transfers — Flat Minimum Tax
Designated transfers are taxable but owe only the flat minimum tax ($1.65 or $1.70) regardless of the property’s value.[1][8] These are transfers between related parties or entities where the transfer is essentially an internal restructuring rather than an arm’s-length sale: gifts and zero-consideration deeds, spouse-to-spouse conveyances, transfers from an individual to their wholly-owned entity (or vice versa), revocable grantor-trust transfers, and corporate mergers or consolidations. Form DT2 must be filed for designated transfers.[8]
The six-month look-back rule is also important: if a designated transfer is followed within six months by a subsequent sale of the property (or of the entity that received it), the Department of Revenue can retroactively impose the full 0.33% tax on the original designated transfer as if it had been a standard sale from the start.[1]
Example A — Standard Taxable Sale (Not Exempt, Not Designated)
The Hennepin County $200,000 sale between unrelated parties (Example A from Step 1) is a standard arm’s-length transaction. No exemption applies. It is not a designated transfer.
Proceed to Step 3 — full 0.34% deed tax rate applies.
Example B — Standard Taxable Sale (Not Exempt, Not Designated)
The Dakota County $250,000 sale with $100,000 assumed mortgage (net $150,000) is also a standard arm’s-length sale. No exemption applies.
Proceed to Step 3 — full 0.33% deed tax rate applies.
3 Calculate the State Deed Tax
For non-exempt, non-designated transfers, the deed tax is 0.33% of net consideration, rounded to the nearest cent using standard half-up rounding.[1][9] There is no ceiling rounding in Minnesota — unlike Kentucky’s $0.50-per-$500 unit system, Minnesota applies a straight percentage and rounds the result. A net consideration of $55,699.00 produces a raw tax of $55,699 × 0.0033 = $183.8067, which rounds to $183.81.
If net consideration is $3,000 or less — or if the transfer is a designated transfer — the flat minimum of $1.65 applies instead. In Hennepin and Ramsey Counties, the minimum is $1.70 to reflect the ERF surcharge.[1]
In Hennepin and Ramsey Counties only, a separate Environmental Response Fund (ERF) tax of 0.01% is imposed on top of the state deed tax under Minn. Stat. §§ 383A.80 and 383B.80.[2] These two metropolitan counties use this levy to fund environmental cleanup programs. The ERF tax is calculated separately on the same net consideration base and added to the state deed tax. The combined rate in Hennepin and Ramsey is therefore 0.34% (0.33% + 0.01%). When the minimum tax applies in Hennepin or Ramsey, the $1.70 minimum covers both the state and ERF components — they are not separated at the minimum level.
Standard Deed Tax = Net Consideration × 0.0033 [all counties] + ERF Tax = Net Consideration × 0.0001 [Hennepin & Ramsey ONLY — §§383A.80, 383B.80] Combined Rate = 0.0034 in Hennepin/Ramsey; 0.0033 elsewhere Rounding: standard half-up to nearest cent Minimum tax: $1.65 (all other counties) · $1.70 (Hennepin/Ramsey) when net ≤ $3,000 or designated Paid by Grantor (Seller) at recording — §287.21
Example A — $200,000 Sale in Hennepin County (ERF Applies)
Net consideration: $200,000 (from Step 1). Standard taxable transfer. Hennepin County: ERF applies.
State deed tax: $200,000 × 0.0033 = $660.00 SELLER PAYS
ERF tax: $200,000 × 0.0001 = $20.00 HENNEPIN/RAMSEY ONLY
Total deed tax: $660.00 + $20.00 = $680.00
Example B — $150,000 Net Consideration in Dakota County (No ERF)
Net consideration: $150,000 (from Step 1). Standard taxable transfer. Dakota County: no ERF.
State deed tax: $150,000 × 0.0033 = $495.00 SELLER PAYS
ERF tax: $0 (Dakota County is not Hennepin or Ramsey)
Total deed tax: $495.00
4 Add the Agricultural Conservation Fee
Separate from the deed tax, ten Minnesota counties impose a $5.00 agricultural conservation fee per taxable deed under Minn. Stat. § 40A.152.[3] This flat fee funds local agricultural land preservation programs and applies to every deed that is subject to deed tax — it does not apply to exempt transfers. It is a fixed amount; it does not scale with property value. The ten participating counties are:
Counties with $5.00 Agricultural Conservation Fee (§40A.152):
Anoka · Carver · Dakota · Hennepin · Ramsey · Scott · Waseca · Washington · Winona · Wright
Counties outside this list owe no agricultural conservation fee. The $5.00 is a separate line item from the deed tax and from the recording fee — all three are collected simultaneously by the county recorder, but they are distinct charges with separate statutory authorities.
Agricultural Conservation Fee = $5.00 (flat, per deed) — if county is in the 10-county list = $0.00 — all other 77 counties Authority: Minn. Stat. § 40A.152 Applies on taxable deeds only — exempt transfers are not subject to the fee Added to deed tax; both paid at recording to county recorder
Example A — Hennepin County (Ag Fee Applies)
Hennepin County is on the agricultural conservation fee list.
Agricultural conservation fee: $5.00 AG COUNTY
Running total deed tax due: $680.00 (deed tax) + $5.00 (ag fee) = $685.00
Example B — Dakota County (Ag Fee Applies)
Dakota County is also on the agricultural conservation fee list.
Agricultural conservation fee: $5.00 AG COUNTY
Running total deed tax due: $495.00 (deed tax) + $5.00 (ag fee) = $500.00
5 Total, File, and Pay at Recording
The total deed tax due is paid to the county recorder when the deed is presented for recording. The recorder also collects the $46.00 recording fee at the same time — a uniform statewide amount set by Minn. Stat. § 357.18 that applies identically in all 87 Minnesota counties.[4] Unlike most states, Minnesota has no per-page recording fee for standard land documents — the flat $46.00 covers any deed regardless of length. Plat recordings are charged $56.00 instead of $46.00. If a document references more than four prior recorded instruments, an additional $10.00 per instrument beyond four applies.[4]
If net consideration exceeds $3,000, the parties must also file a Certificate of Real Estate Value (eCRV) electronically with the Minnesota Department of Revenue under Minn. Stat. § 272.115, before or at the time of recording.[5] The eCRV number should be noted on the deed or presented to the recorder. For transactions at or below $3,000, a statement on the deed — such as “Total consideration $3,000 or less” — suffices. The eCRV is filed at mndor.state.mn.us and is used by the Department to verify assessments and audit deed tax compliance.
All revenue is allocated by statute: of the $46.00 recording fee, $10.50 goes to the state general fund, $10.00 to a recorder technology fund, and $25.50 to the county general fund.[4] The deed tax itself flows to the county treasury after the state retains its share.
Total Deed Tax Due = Deed Tax (Step 3) + Ag Conservation Fee (Step 4) Recording Fee (separate) = $46.00 per deed · $56.00 for plats — all 87 counties (§357.18) No per-page fee — flat $46 covers any document length eCRV required if net > $3,000 — file at mndor.state.mn.us (§272.115) Paid by Grantor (Seller) at recording — no separate annual state return
Example A — $200,000 Sale in Hennepin County, Full Calculation
$200,000 net consideration | Standard taxable sale | ERF applies | Ag fee applies
State deed tax: $200,000 × 0.0033 = $660.00
ERF tax: $200,000 × 0.0001 = $20.00
Agricultural conservation fee: $5.00
Total Deed Tax Due = $685.00 SELLER PAYS
Recording fee (separate): $46.00 | eCRV required (net > $3,000)
Total at recording counter: $731.00 | Effective rate on net consideration: 0.3425%
Example B — $250,000 Sale / $100,000 Assumed Mortgage in Dakota County, Full Calculation
$150,000 net consideration ($250,000 price − $100,000 assumed mortgage) | No ERF | Ag fee applies
State deed tax: $150,000 × 0.0033 = $495.00
ERF tax: $0 (not Hennepin or Ramsey)
Agricultural conservation fee: $5.00
Total Deed Tax Due = $500.00 SELLER PAYS
Recording fee (separate): $46.00 | eCRV required (net > $3,000)
Total at recording counter: $546.00 | Effective rate on net consideration: 0.3333%
Special Cases Worth Knowing
The Minimum Tax — $1.65 and $1.70
Two separate triggers produce the minimum tax. The first is mechanical: when net consideration is $3,000 or less, the 0.33% formula would produce less than $9.90, and the statute substitutes the flat $1.65 minimum (or $1.70 in Hennepin/Ramsey).[1] The second is substantive: designated transfers always pay the minimum regardless of the property’s value. A $3,000,000 gift deed from a parent to an adult child — a designated transfer — owes only $1.65 in deed tax, not $9,900. This is the mechanism by which Minnesota accommodates intra-family estate planning without imposing a full transfer tax burden on wealth transfers within a family unit. Example: a gift deed in Wright County (ag fee county) at $0 consideration — deed tax $1.65 + ag fee $5.00 = $6.65 total.
The Six-Month Look-Back on Designated Transfers
The designated-transfer minimum comes with a significant string attached. If the grantee of a designated transfer sells the property — or if the grantee entity undergoes an ownership change — within six months of the designated transfer, the Department of Revenue can retroactively impose the full 0.33% deed tax (plus interest and penalties) as if the original transfer had been a taxable arm’s-length sale.[1] This look-back rule is intended to prevent taxpayers from using a series of related transactions to avoid deed tax on an underlying sale. Practitioners handling business reorganizations or estate planning transfers should calendar the six-month anniversary date and advise clients accordingly.
Foreclosure Documents — A Critical Distinction
Minnesota’s treatment of foreclosure-related instruments is nuanced and differs from many other states. The sheriff’s certificate of sale — issued to the successful bidder at a foreclosure sale — is exempt under § 287.22(11). The original owner’s certificate of redemption — issued when the borrower redeems the property during the redemption period — is also exempt. However, a creditor’s redemption certificate — issued when a junior lienholder exercises its redemption rights — is specifically taxable.[7] The tax on a creditor’s redemption is computed on the net value the creditor paid. Deeds in lieu of foreclosure are taxable sales — the tax base is fair market value minus any liens that remain on the property after the transfer.[7]
Half-Up Rounding — Not Ceiling Rounding
Minnesota uses standard half-up rounding to two decimal places, not the ceiling method used by Kentucky ($0.50 per $500 unit). A raw tax of $183.8067 (from $55,699 × 0.0033) rounds to $183.81 — the third decimal is 0, so we look at the full value $183.8067 which rounds up. A raw tax of $183.8050 rounds to $183.81 (half-up), and $183.8049 rounds down to $183.80.[9] In Carver County, $55,699 produces total deed tax of $183.81 + $5.00 ag fee = $188.81.
Multi-Parcel Deeds
When a single deed conveys multiple parcels to the same grantee, the tax is computed on the combined net consideration of all parcels together. If separate deeds are used for separate parcels, each deed carries its own tax and its own $46.00 recording fee. From a tax perspective, one deed covering multiple parcels is generally more efficient than multiple deeds. The agricultural conservation fee, if applicable, applies once per deed — not per parcel.
Rate and Exemption Reference
| County Group | State Deed Tax | ERF Tax | Combined Rate | Minimum Tax | Ag Conservation Fee | Recording Fee |
|---|---|---|---|---|---|---|
| All 87 counties (base) | 0.33% | — | 0.33% | $1.65 | — | $46.00/doc · $56.00/plat |
| Hennepin & Ramsey | 0.33% | +0.01% (§§383A.80, 383B.80) | 0.34% | $1.70 | +$5.00 (§40A.152) | $46.00 |
| Anoka, Carver, Dakota, Scott, Waseca, Washington, Winona, Wright | 0.33% | — | 0.33% | $1.65 | +$5.00 (§40A.152) | $46.00 |
| All other 75 counties | 0.33% | — | 0.33% | $1.65 | — | $46.00 |
| Exemption Type | Tax Due | Authority | Notes |
|---|---|---|---|
| Mortgage / Release / Assignment | $0.00 | §287.22(3) | Most common exemption — security instruments only, no ownership transfer |
| U.S. Government Transfer | $0.00 | §287.22(7) | To/from federal government or agency; state government not exempt |
| Personal Representative Distribution | $0.00 | §287.22(9) | Estate distribution deeds; attach certified letters testamentary |
| Partition Between Co-Owners | $0.00 | §287.22(10) | Division among existing owners; no new consideration |
| Sheriff’s Certificate / Owner Redemption | $0.00 | §287.22(11) | Creditor redemption certificates ARE taxable — important distinction |
| Divorce Decree Deed | $0.00 | §287.22(14) | Attach copy of dissolution decree |
| Transfer-on-Death Deed | $0.00 | §287.22(15) | Exempt at execution; actual transfer at death may be taxable |
| Easement | $0.00 | §287.22(13) | Easement instruments only |
| Lease | $0.00 | §287.22(5) | Any term |
| Designated Transfer | $1.65 / $1.70 | §287.21 subd. 2 | Gifts, intra-family, grantor-trust, mergers — minimum tax; file Form DT2; 6-month look-back applies |
Filing, Forms, and Payment Process
| Step | What Happens | Form / Document |
|---|---|---|
| eCRV filed (if net > $3,000) | Grantor or closing agent files the Certificate of Real Estate Value electronically at mndor.state.mn.us before or at recording (§272.115). For net ≤ $3,000, note “consideration $3,000 or less” on the deed. | eCRV (electronic) |
| Exemption or minimum-tax noted on deed | Deed must state the exemption basis (e.g. “Exempt — §287.22(14)”) or the minimum-tax basis (e.g. “Designated transfer — §287.21 subd. 2”). Supporting documents attached. | Form DT1 / notation on deed |
| Form DT2 for designated transfers | Designated transfers require a separate DT2 statement filed with the county recorder at recording. Documents the nature of the designated transfer for Department of Revenue review. | Form DT2 (Minn. R. 2675) |
| Deed presented to county recorder | Grantor or closing agent submits the deed with deed tax payment, ag fee (if applicable), and $46 recording fee. No deed is recorded until all amounts are paid. | Deed instrument |
| Deed recorded | County recorder affixes recording stamp. Revenue allocated per §357.18. No separate state annual return required. | Official land records |
References
- Minn. Stat. § 287.21 — Deed Tax; Rate and Minimum.
The primary statutory authority imposing Minnesota’s deed tax. § 287.21, subd. 1 imposes the tax on every deed or instrument conveying Minnesota real property at the rate of $1.65 (minimum) or 0.0033 (0.33%) of net consideration, whichever is greater. Subdivision 2 defines designated transfers and imposes the flat $1.65/$1.70 minimum on them regardless of consideration. Subdivision 3 establishes the six-month look-back rule: a subsequent ownership change within six months of a designated transfer can retroactively trigger the full 0.33% tax on the original transfer. The tax is due at the time the deed is presented for recording. The rate has remained at 0.33% since its adoption. Net consideration is defined as total consideration minus the value of liens not discharged by the conveyance.
Minnesota Legislature: revisor.mn.gov — Minn. Stat. §287.21 - Minn. Stat. §§ 383A.80 and 383B.80 — Hennepin and Ramsey County Environmental Response Fund Tax.
These two county-specific statutes each impose an additional 0.01% deed tax on all conveyances of real property located in Hennepin County (§383A.80) and Ramsey County (§383B.80) respectively. The ERF tax is applied to the same net consideration base as the state deed tax and rounds to the nearest cent. When combined with the state 0.33% rate, the effective rate in these two counties is 0.34% of net consideration. The ERF revenues fund environmental response and cleanup programs administered by Hennepin and Ramsey Counties. The ERF tax is not levied in any other Minnesota county. When the minimum tax applies in Hennepin or Ramsey, the $1.70 minimum covers both the state and ERF components.
Minnesota Legislature: revisor.mn.gov — §383A.80 · §383B.80 - Minn. Stat. § 40A.152 — Agricultural Conservation Fee ($5 in 10 Counties).
§ 40A.152 authorizes ten Minnesota counties to impose a $5.00 per-deed fee to fund local agricultural land preservation programs under the Minnesota Agricultural Land Preservation program. The ten participating counties are Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Waseca, Washington, Winona, and Wright. The fee is flat (not percentage-based) and applies to every taxable deed recorded in those counties — exempt deeds are not subject to the fee. The $5.00 fee is collected by the county recorder at the same time as the deed tax and recording fee. Counties outside this list have no authority to impose a similar fee. The agricultural conservation fee is a separate statutory charge from the deed tax and is itemized separately in the calculator’s output.
Minnesota Legislature: revisor.mn.gov — §40A.152 · MN Dept. of Revenue — Conservation Fee Counties list - Minn. Stat. § 357.18 — County Recorder Recording Fees ($46 per Document).
§ 357.18 sets the statewide uniform recording fee of $46.00 for each document recorded in any of Minnesota’s 87 counties, effective for recording instruments including deeds, mortgages, satisfactions, and assignments. Of the $46.00 fee, $10.50 is remitted to the state general fund, $10.00 to a recorder technology fund, and $25.50 to the county general fund. Plats are recorded at $56.00. There is no per-page fee for standard land documents — the $46.00 covers any document regardless of page count. If a document references more than four prior instruments, $10.00 per additional instrument applies. County recording fee schedules confirm these uniform rates (Wright County, Ramsey County, and others publish fee schedules consistent with § 357.18).
Minnesota Legislature: revisor.mn.gov — §357.18 · Wright County Recorder fee schedule · Ramsey County fee schedule - Minn. Stat. § 272.115 — Certificate of Real Estate Value (eCRV) Requirement.
§ 272.115 requires that a Certificate of Real Estate Value be submitted to the Minnesota Department of Revenue whenever a deed for consideration in excess of $3,000 is presented for recording. The eCRV must be filed electronically through the Department of Revenue’s online portal at mndor.state.mn.us. The eCRV captures the sale price, buyer and seller information, property description, and financing details and is used by the Department to verify assessment accuracy and audit deed tax compliance. Failure to file an eCRV before recording does not prevent the deed from being accepted, but may result in penalties. For transfers at $3,000 or less, the deed must instead contain a statement that consideration does not exceed $3,000. The eCRV number should be presented to the county recorder or noted on the deed at time of recording.
Minnesota Legislature: revisor.mn.gov — §272.115 · MN DOR eCRV portal: mndor.state.mn.us - Minnesota Department of Revenue — Deed Tax Rate Page and Net Consideration Definition.
The Department of Revenue’s deed tax guidance page defines the key concepts of “consideration” and “net consideration” used to compute Minnesota deed tax. Consideration is the total value given in return for the conveyance; net consideration is consideration less the value of any liens or encumbrances remaining on the property after the conveyance. The DOR confirms the 0.33% rate and provides worked examples, including the Hennepin/Ramsey 0.34% combined rate. The DOR guidance also confirms that the minimum tax ($1.65/$1.70) applies when net consideration is $3,000 or less. The DOR rate page is the primary reference confirming that the calculator rates are current as of 2026.
Minnesota Department of Revenue: revenue.state.mn.us/deed-tax - Minn. Stat. § 287.22 — Exemptions from Deed Tax.
§ 287.22 lists all instruments exempt from Minnesota’s deed tax. The full list of exemptions includes: (1) executory contracts where buyer is in possession; (3) mortgages, assignments, and releases; (4) plats; (5) leases; (7) U.S. government/federal agency transfers; (8) cemetery deeds; (9) personal representative distributions; (10) partition deeds between co-owners; (11) sheriff’s certificates of sale and owner redemption certificates in mortgage foreclosures — with the critical exception that creditor redemption certificates are NOT exempt; (13) easements; (14) divorce decree and judgment-related deeds; (15) transfer-on-death deeds. For each exemption, the basis must be noted on the deed. The DOR Foreclosure Documents guidance explicitly confirms that a creditor’s redemption certificate is taxable as a deed, computed on net value paid by the redeeming creditor. Deeds in lieu of foreclosure are treated as taxable sales — tax base is FMV minus liens not discharged.
Minnesota Legislature: revisor.mn.gov — §287.22 · MN DOR Foreclosure Documents guidance - Minn. R. ch. 2675 — Deed Tax Rules; Form DT2 for Designated Transfers.
Minnesota Administrative Rules chapter 2675 governs deed tax administration, including the documentation requirements for designated transfers. The rules require that designated transfers be reported on Form DT2, which must be filed with the county recorder at the time of recording. The rules define categories of designated transfers, including: transfers between spouses; transfers from an individual to a wholly-owned entity (or the reverse); transfers to a revocable grantor trust; and transfers incident to a corporate merger, consolidation, or reorganization. Form DT2 triggers DOR review for the six-month look-back period. Practitioners should retain evidence of the nature of the transfer in case the DOR later inquires about a subsequent sale within the six-month window. Form DT3 is used when a previously filed DT2 needs to be cancelled.
Minnesota Office of Revisor of Statutes: revisor.mn.gov — Minn. R. ch. 2675 · MN DOR Designated Transfer guidance - Minnesota Department of Revenue — Deed Tax Rounding Rule (Half-Up to Nearest Cent).
The Department of Revenue’s deed tax computation guidance confirms that the deed tax is computed as net consideration multiplied by the applicable rate and rounded to the nearest cent using standard half-up rounding (round half away from zero). This means that a raw tax amount with a third decimal of 5 or more rounds up to the next cent, and a third decimal of 4 or less rounds down. For example, $55,699 × 0.0033 = $183.8067, which rounds to $183.81. This contrasts with the ceiling (round-up) method used in Kentucky and Arkansas, and confirms that Minnesota’s rounding method does not always favor the state — a raw amount of $183.8033 would round down to $183.80. The DOR Deed Tax Rate documentation confirms the half-up rounding rule applies uniformly to all 87 counties.
Minnesota Department of Revenue: revenue.state.mn.us/deed-tax - Ramsey County Recorder Fee Schedule — $46 Document / $56 Plat Confirmed.
Ramsey County’s official recorder fee schedule confirms the $46.00 per-document recording fee and $56.00 for plats, consistent with Minn. Stat. § 357.18. Ramsey County is the home of St. Paul (Minnesota’s capital) and one of only two counties subject to the ERF tax surcharge. The county’s schedule also lists miscellaneous fees including $10.00 per instrument for documents referencing more than four prior instruments, $10.00 for certified copies, and $2.00 for uncertified copies. The schedule confirms that there is no per-page fee for standard land documents. The $46.00 uniform fee applies identically to all Minnesota counties by operation of the state statute.
Ramsey County Recorder / Registrar of Titles: ramseycountymn.gov
Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. Minnesota’s deed tax is governed by Minn. Stat. §§ 287.21–.22 and associated rules. Rates and exemptions are as of 2026. Always confirm the current deed tax rate, agricultural conservation fee applicability, eCRV requirements, and recording fees with the applicable county recorder or a licensed Minnesota attorney or title professional before closing. The $5 agricultural conservation fee applies only in the ten listed counties. Rates in Hennepin and Ramsey Counties include the ERF surcharge. Verify current rates and rules at revenue.state.mn.us.