How it is computed
Minnesota taxes property on net tax capacity, not on market value directly. For a residential homestead the first $95,000 of value gets a 40 percent exclusion ($38,000 maximum), which phases out at 9 percent of the value above $95,000 and reaches zero at $517,200. The remaining taxable market value is multiplied by the class rate (1 percent up to $500,000, 1.25 percent above; 1.5 and 2 percent for commercial; 1.25 percent for apartments) to get net tax capacity. Each jurisdiction's certified rate is applied to that capacity: city 84.682 percent, and 143.030 percent in total for the county, city, Kenyon-Wanamingo schools and special districts. A separate market-value-based school referendum levy of 0.200745 percent applies to the full market value.
The estimator reproduces the county's actual bills to within a few dollars for standard parcels; it does not model agricultural credits, the disabled-veteran exclusion, special assessments, or tax increment districts. The 2027 levy proposed on September 8, 2026 would raise the city rate to about 89.5 percent, roughly $70 more on a $200,000 homestead if values were unchanged.
Sources: Minn. Stat. 273.13 (class rates and homestead exclusion); Goodhue County 2026 Tax Extension Rates; verification against 1,015 city parcels in the county record.