Costs of Selling Land in Minnesota

Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.

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Seller Costs in Minnesota at a Glance

Cost	Typical amount	Who usually pays
State deed tax	0.33% of net consideration ($1.65 if the price is $3,000 or less)	Not named in the statute; set in the purchase contract, often the seller
Environmental Response Fund tax (Hennepin and Ramsey only)	Extra 0.01% of net consideration	Set in the contract, with the deed tax
Deed recording fee	$46 per document	Set in the purchase contract
Well disclosure certificate	$54 when the land has a well; none if there are no wells	Buyer files and pays; the seller must disclose known wells
Title insurance or abstract update	Varies	By local custom, set in the contract
Closing or settlement fee	Varies	Often split, set in the contract
Prorated property taxes	Your share of the tax bill up to closing day	Each side pays for the days it owns the land, per the contract
Federal capital gains tax	0%, 15% or 20% on the gain if you owned the land more than one year; ordinary income rates if one year or less	Seller, on the tax return
Minnesota income tax on the gain	5.35% to 9.85% (2026 brackets); plus 1% on net investment income over $1 million	Seller, on the Minnesota return

Example: Seller Costs on a $25,000 Land Sale

State deed tax ($25,000 x 0.0033): $82.50
Total deed tax if the contract puts it on the seller: $82.50

$25,000 x 0.0033 = $82.50. In Hennepin or Ramsey County add $25,000 x 0.0001 = $2.50, for $85.00. Title, closing, recording and prorated tax lines vary and are left out. When you sell to EasyLotBuyer, we pay the closing costs.

Selling Costs in Minnesota: What to Know

Selling land in Minnesota usually means a state deed tax, a county recording fee, title and closing charges, and income tax on any gain. Minnesota also has a well disclosure rule that applies to rural land.

This page lists each cost, who usually pays, and a worked example for a $25,000 lot. Rates come from Minnesota statutes, the Minnesota Department of Revenue, the Minnesota Department of Health and the IRS. This page is general information, not legal or tax advice.

Who pays what in a Minnesota land sale

The Minnesota deed tax statute says when the tax is due, at recording, but not which party pays it. Who pays is set in the purchase contract, and many contracts put it on the seller. Read your contract and the settlement statement line by line.

Set by the contract: deed tax, title work, closing fee, recording fees.
Buyer: the well disclosure certificate fee when the land has a well.
Shared by days owned: property taxes for the year of sale.
Seller alone: any mortgage, lien or back tax payoff, paid from the proceeds.

Deed tax and the Hennepin and Ramsey add-on

The deed tax is 0.0033 of the net consideration, or $1.65 when the price is $3,000 or less, under Minn. Stat. 287.21. Net consideration is the price less any liens or encumbrances the buyer takes on.

Hennepin and Ramsey counties add an Environmental Response Fund tax of 0.0001, per the Department of Revenue. Some transfers are exempt; the department lists them on its deed tax pages.

Recording fees and well disclosure

County recorders charge $46 to record a deed or other instrument under Minn. Stat. 357.18.

Before you sign a sale agreement, you must tell the buyer in writing about every known well on the property. If there is a well, a Well Disclosure Certificate is filed with the deed and the buyer pays a $54 fee. If there are no wells, no certificate is needed; the deed carries a statement instead. Details are on the Minnesota Department of Health site.

Title company or attorney closing

Most Minnesota land sales close through a title company, which updates the abstract or searches the title, collects the deed tax and records the deed. You may also hire a real estate attorney, which helps when the land is in an estate or the title has gaps.

Fees for title work and closing differ by company, so get a written quote before you agree to who pays.

Capital gains basics: federal and Minnesota

Your gain is the sale price, less selling costs, less your basis. Basis usually starts with what you paid for the land and grows with costs like surveys you paid to buy it or improvements such as a road or well. Land you inherited or got as a gift has its own basis rules. See IRS Topic 703.

If you owned the land more than one year, the federal long-term rate is 0%, 15% or 20%, based on your taxable income. If you owned it one year or less, the gain is taxed at your regular rates. See IRS Topic 409. Higher earners can also owe the 3.8% net investment income tax.

The closing agent usually reports the sale to the IRS on Form 1099-S. You report the sale on your own return even if you had a loss.

Minnesota taxes capital gains as regular income. For 2026 the brackets run from 5.35% to 9.85%, per the Department of Revenue. Minnesota also charges a 1% net investment income tax on net investment income over $1 million. Nonresidents owe Minnesota tax on gains from land located in Minnesota, per the department's nonresident guidance. This page is general information, not legal or tax advice.

How selling to a cash buyer changes your costs

A listed sale often carries an agent commission plus the seller lines above. A sale to a cash buyer like EasyLotBuyer skips the commission. We charge no fees or commissions, and we pay the closing costs, so lines like these do not come out of your check.

On a Minnesota sale that means you do not pay the title, closing or recording lines in our deal. Your contract with us shows each cost and who pays it before you sign.

We make a cash offer within 24 hours and can close in as few as 7 days. We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale. Taxes on your own gain stay with you, so talk to a tax professional about that part. Start with a free land value estimate or see how we buy land in Minnesota.

Sources

Rules and fees change; check with the county before you act on them.

Selling Cost Questions in Minnesota

Who pays the deed tax in Minnesota?

The statute does not name a party. The purchase contract decides, and many contracts put it on the seller.

What is the Minnesota deed tax rate?

0.33% of net consideration, or $1.65 if the price is $3,000 or less. Hennepin and Ramsey counties add 0.01%.

How much is the deed tax on a $25,000 lot in Minnesota?

$82.50, or $85.00 in Hennepin or Ramsey County.

How much does it cost to record a deed in Minnesota?

$46 per document under Minn. Stat. 357.18.

Do I need a well disclosure to sell vacant land in Minnesota?

You must disclose any known wells in writing before signing. If there are no wells, no certificate is needed, but the deed carries a statement saying so.

Does Minnesota tax capital gains on land?

Yes, as regular income at 5.35% to 9.85% for 2026, plus 1% on net investment income over $1 million.

Does EasyLotBuyer charge any fees?

No. We charge no fees or commissions, and we pay the closing costs.