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Costs & taxes, Minnesota-specific

What are Minnesota's deed tax and mortgage registry tax?

Answered byChris DeutschLicensed MN Realtor (MN #20382264)
Direct Summary (TL;DR)

They're Minnesota's two transfer taxes, and they land on opposite sides of the table. The deed tax is the seller's — about a third of one percent of the sale price, or 0.33%, per the Minnesota Department of Revenue. It's paid when the deed is recorded. The mortgage registry tax is the borrower's — about a quarter of one percent, or 0.23%, of the new loan amount, not the price. It's paid when the mortgage is recorded. Hennepin and Ramsey counties each add a small environmental-fund surcharge.

In practice: sellers see the deed tax as a line on the settlement statement. Buyers see the registry tax inside closing costs — and cash buyers skip it entirely, since there's no mortgage to record. Neither is negotiable; they're statutes, not fees.

(I'm not your CPA, and this isn't tax advice — the title company calculates both to the penny.) As closing surprises go, these are the polite kind: known, flat, and visible in advance on your Loan Estimate or net sheet.

I wrote this answer, and I stand behind it. I'm Chris Deutsch, a Minneapolis Realtor (MN #20382264). Twenty-five years of walking these neighborhoods, checking basements, and sitting across kitchen tables from people making exactly this call. I re-check every answer and date it — this one was last verified .

If your situation is more specific than the market, that's the one worth talking through. Email me at chris@lakesarearealty.com.

Transition Lens: generalSource: Minnesota Department of Revenue — deed tax and mortgage registry taxID: tax-deed-tax-registry

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