Behind on Property Taxes in Minnesota?

Back Taxes in Minnesota: Your Options

This page explains what happens in Minnesota when property taxes on land go unpaid. It covers the May and October due dates, penalties, delinquency in January, the tax judgment sale to the state, the redemption period, forfeiture, and the surplus claim process added in 2024.

Minnesota's process changed after the 2023 U.S. Supreme Court decision in Tyler v. Hennepin County, a Minnesota case. Owners can now claim the surplus when forfeited land sells for more than what was owed. You keep the land and can pay or sell until the redemption period ends. This page is general information, not legal or tax advice. For your own parcel, ask your county auditor or treasurer.

When Minnesota property taxes are due and go delinquent

If the tax is over $100, half is due before May 16 and half before October 16. Smaller bills are due in full with the first half (Minn. Stat. §279.01).

On the first business day in January, any tract with taxes still unpaid becomes delinquent and an added penalty applies (Minn. Stat. §279.02).

Penalties and interest

Late payments get a penalty when each half is missed. For nonhomestead property, which includes most vacant land, it is 4 percent, then another 4 percent the next month, then 1 percent a month through December, up to 12 percent in total. Homestead penalties are lower, up to 8 percent (Minn. Stat. §279.01). After delinquency, interest also accrues. Ask the county for the current rate.

What the county does next: tax judgment and forfeiture

The county gets a court judgment against delinquent parcels. On the second Monday in May, the county auditor sells those parcels to the state for the delinquent taxes, penalties, costs and interest. No notice of sale is published (Minn. Stat. §280.01). You still own the land after this sale.

The redemption period is generally three years from that sale. Some nonhomestead land in targeted communities has a one-year period (Minn. Stat. §281.17). If the land is not redeemed, it forfeits to the state and the county manages it.

Redemption

To redeem, you pay the county the delinquent taxes with penalties, interest and costs before the redemption period ends. Later years' taxes must also be paid. Ask the county auditor for the exact deadline and payoff.

Surplus after a forfeiture sale

The Tyler decision held that Minnesota's old forfeiture process was unconstitutional because it gave owners no way to recover equity above the tax debt (Minnesota fiscal note on HF 4822). Under the 2024 changes, a county must first offer forfeited parcels at public auction. If a sale brings more than the minimum bid, the county auditor must notify interested parties within 60 days, and they have six months from the notice to file a claim for the surplus (Minn. Stat. §282.005).

Your options if you are behind

Your best choice depends on the land, the amount owed and when the redemption period ends.

• Pay the full amount owed, with penalties, interest and costs, before the next step in the process.
• Ask the tax office whether it offers a payment plan, and get the terms in writing.
• Sell the land before the deadline. The back taxes are paid from the sale at closing.
• If the land was inherited, gather the death certificate and any will or probate papers early, because a sale needs someone with authority to sign.
• If the numbers are large or a deadline is close, talk to a real estate attorney.

Selling land with back taxes in Minnesota

You can sell land with delinquent taxes before it forfeits. At closing, the title company gets a payoff from the county and pays it from the sale price. The buyer gets title free of the tax lien.

EasyLotBuyer buys vacant land in Minnesota for cash, including lots with back taxes, liens, title issues or no road access, and land from heirs and estates. We make a cash offer within 24 hours, charge no fees or commissions, and pay the closing costs. We can close in as few as 7 days. Back taxes are paid at closing from the sale.

Where to check your tax status

Your county auditor or treasurer has the tax statements, delinquency status and redemption deadline. Most counties have an online property tax search by parcel number. The Minnesota Department of Revenue has a page for property tax administrators with county contacts.