Most states tax one thing when a house changes hands. Minnesota taxes two, and the two taxes have different rates, different payers, and different triggers.
The Deed Tax is 0.33% of the sale price. On Minnesota's $375,000 statewide median that's $1,238, and by custom the seller pays it. The Mortgage Registry Tax is 0.23% of the debt you're securing. Borrow $300,000 — 20% down on that same median home — and that's another $690, and this one is yours.
Combined, the state's take is $1,928 on that purchase, so neither number breaks a deal. But the registry tax catches people out, because it doesn't behave like a normal closing cost: it scales with what you borrow rather than what you pay, and it lands again every time you record a mortgage, so a refinance or a home equity line triggers it even though nobody bought anything. For the mechanics of the fees every state charges, see our full line-by-line breakdown of closing costs.
A note before you start: this is general education, not financial, legal, or tax advice. Every figure below is a statewide number from CalculatorByState's sourced dataset, and your county, lender, title company, and purchase agreement will all move the total. Two Minnesota counties charge a surcharge the other 85 don't, and recording offices set their own fees. Your Loan Estimate and Closing Disclosure are authoritative — use this to sanity-check them, not to replace them.
1. What closing costs actually run in Minnesota
Against Minnesota's $375,000 median sale price, the standard 2-5% buyer range works out to roughly $7,500 to $18,750, midpoint around $13,125. At $350,000 the same range is about $7,000 to $17,500. The narrower sourced average for Minnesota buyers is about 3.55%, or roughly $13,313 at the median — essentially on top of that midpoint, and excluding agent commissions.
Closing costs sit on top of your down payment, not inside it. On a $375,000 purchase with 20% down you finance $300,000 and bring $75,000. Add the $13,125 midpoint and you need about $88,125 in cash — that total, not the down payment, is the number worth planning around.
See your all-in Minnesota closing costs2. The Deed Tax: 0.33% on the sale, paid by the seller
Minnesota's Deed Tax is what most states would just call a transfer tax. The Department of Revenue sets it at 0.33% of net consideration — $1.65 per $500 of sale price — collected when the deed is recorded. At the median that's $1,238 ($375,000 × 0.0033); at $350,000 it's $1,155. Deeds valued under $3,000 aren't taxed at all, which matters for lot transfers and family conveyances, not a normal purchase.
By Minnesota custom the seller pays it. That's a contract default, not a statute, so it's negotiable — but it is genuinely customary, and a buyer asked to absorb it should treat that as a concession worth pricing.
3. The Mortgage Registry Tax follows your loan, not the house
This is the unusual one, and the one you pay. The Mortgage Registry Tax (MRT, MN Stat. 287.035) is 0.23% of the principal debt secured by a mortgage recorded against Minnesota property. The borrower pays it when the mortgage is filed with the county recorder or registrar of titles, and the state and county split the proceeds.
Three consequences worth internalizing:
- It's driven by loan size, not price. Borrow $300,000 and you owe $690 ($300,000 × 0.0023). Put 5% down on that same $375,000 house and you're financing $356,250, so the MRT rises to about $819 — a bigger bill from an unchanged purchase price.
- It applies to any recorded mortgage, including a HELOC or home equity loan. Opening a line of credit against your house is a recording event, and the tax attaches to the debt secured.
- A refinance triggers it again. No sale means no Deed Tax, but the new mortgage still gets recorded. At today's 6.65% on a 30-year fixed or 5.95% on a 15-year, that's a real input into whether a refinance pencils out: $300,000 refinanced carries the same $690.
Most states have nothing like this tax, so if you moved here the line will be new. It sits under government recording charges rather than lender fees, which is why it's easy to skim past — see where each fee sits on the Loan Estimate.
4. Hennepin and Ramsey add a surcharge to both
Buying in Minneapolis or St. Paul nudges both rates up. Hennepin and Ramsey counties levy a 0.01% Environmental Response Fund surcharge on top of each tax:
- Deed Tax: 0.33% + 0.01% = 0.34%
- Mortgage Registry Tax: 0.23% + 0.01% = 0.24%
On the $375,000 median, the Deed Tax rises from $1,238 to $1,275; on a $300,000 loan the MRT rises from $690 to $720. That's $67 more across both taxes — real, but not a reason to change where you buy. The bigger metro effect is price: the Twin Cities median is $408,000 against the statewide $375,000, and 0.34% of $408,000 is about $1,387 in Deed Tax.
5. Who runs your Minnesota closing
Minnesota is a title and escrow state, not an attorney state. Minnesota Statutes §507.45 authorizes licensed closing agents to conduct residential closings, and that license can be held by a title company as well as by an attorney. No law requires a lawyer at your table.
In practice a title or escrow company handles it, and your settlement statement shows a closing fee, title premiums, and recording charges, with no attorney line. An attorney is still worth hiring on a complicated purchase — a contract for deed, a distressed or probate sale, a title problem — but most buyers on a standard deal don't use one. Do check that your closing agent holds the Department of Commerce license the state requires. Title insurance works the same here as everywhere; see what title insurance covers.
6. Who pays what, and what's negotiable
Minnesota custom, in short:
- Seller: Deed Tax ($1,238 at the median), agent commissions, their own recording charges.
- Buyer: Mortgage Registry Tax ($690 on a $300,000 loan), lender fees, appraisal, lender's title policy, prepaids.
That's a default, not a rule. The MRT is the item you have least room on — a fixed percentage of a number you control only by borrowing less. Lender charges hold the real negotiating room, third-party services you select can be shopped, and government fees and prepaids are fixed; which closing fees you can actually push back on sorts them by how much give each has. Where sellers are competing, a credit toward closing costs is often easier to win than a price cut, because it doesn't touch the appraised value.
7. How to lower the bill before you sign
- Know your county. Hennepin and Ramsey buyers pay the surcharge on both taxes; everyone else doesn't. Small, but it belongs in your estimate rather than your surprises.
- Understand what a smaller down payment costs here. Beyond PMI, a bigger loan means a bigger registry tax — $819 at 5% down on the median home versus $690 at 20%.
- Price the MRT into any refinance or HELOC math. It returns every time you record a mortgage, so it belongs in your break-even calculation, not just your purchase budget.
- Shop lenders and compare your Loan Estimate to your Closing Disclosure. Origination charges vary on an identical loan, and some items may change between the two documents while others may not; how to read a Loan Estimate line by line covers the tolerances.
Budget for prepaids too — funding escrow for property taxes and insurance is real cash due at closing, separate from fees. How escrow accounts get funded covers it.
Frequently asked questions
How much are closing costs in Minnesota?
At the statewide median sale price of $375,000, a 2-5% range works out to roughly $7,500 to $18,750, midpoint near $13,125. The sourced Minnesota buyer average is about 3.55%, or roughly $13,313 at that price, excluding agent commissions.
Does Minnesota have a transfer tax?
Yes, it's called the Deed Tax, and the statewide rate is 0.33% of net consideration ($1.65 per $500). On a $375,000 sale that's $1,238. Hennepin and Ramsey counties add a 0.01% Environmental Response Fund surcharge, making the rate 0.34% there.
What is the Minnesota Mortgage Registry Tax?
A separate 0.23% tax on the principal debt secured by a mortgage recorded against Minnesota property, paid by the borrower when the mortgage is filed. On a $300,000 loan it's $690. It taxes the loan rather than the sale, and it rises to 0.24% in Hennepin and Ramsey counties.
Do I pay the Mortgage Registry Tax when I refinance?
Yes. No sale means no Deed Tax, but the new mortgage still gets recorded and the registry tax attaches to it. Refinancing $300,000 carries the same $690 as a $300,000 purchase loan, so it belongs in your break-even math.
Who pays the Deed Tax in Minnesota, the buyer or the seller?
Customarily the seller. That's a contract default rather than a legal requirement, so it's negotiable — but seller-paid is the norm, and a buyer covering it is making a concession worth about $1,238 at the median price.
Do I need an attorney to close on a house in Minnesota?
No. Minnesota is a title and escrow state, and §507.45 lets a licensed closing agent — which can be a title company — conduct the closing. Attorneys are worth hiring for complicated transactions but aren't required.
Does a HELOC trigger the Mortgage Registry Tax?
Yes. The tax applies to any mortgage recorded against Minnesota property, and a home equity line or loan is recorded like any other. Factor 0.23% of the amount secured into the cost of opening one.
What to do next
Run your purchase price through Minnesota's payment calculator, which folds in the state's property tax and insurance averages for an all-in monthly number. Then work backward from the cash you have, remembering that the registry tax moves with your loan size — testing down payments changes two lines, not one.
- Minnesota mortgage payment calculator
- Minnesota affordability calculator
- Minnesota first-time buyer calculator
- How to buy a home in Minnesota
- First-time home buyer programs explained
Every figure on this site is sourced and dated, and you can see exactly where each one comes from on our methodology page.
The figures above are illustrations drawn from CalculatorByState's sourced dataset. They are statewide averages, not county-level quotes, and county recording fees plus the Hennepin/Ramsey surcharge mean your address matters. Your costs depend on your lender, title company, loan size, and contract. For advice specific to your situation, consult a licensed real estate professional, lender, or attorney in Minnesota.