# Minnesota mortgages: the deed tax, the mortgage registry tax and Start Up loans

> Minnesota home loans: 0.33% deed tax, 0.23% mortgage registry tax, a $344,600 median home and Minnesota Housing Start Up help.

URL: https://mail.mortgage-math-us.com/location/minnesota/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

A median-value Minnesota home ($344,600) costs about **$2,702 a month** with 10% down at the 7.24% national average rate, including property tax at 1.02% of value. At closing, Minnesota charges a deed tax of 0.33% of the price and a mortgage registry tax of 0.23% of your loan, which the borrower owes. First-time buyers who use Minnesota Housing’s Start Up program can add a 0% deferred loan of up to $18,000 for the down payment and closing costs.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value in Minnesota | $344,600 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US27) | 2024 ACS 1-year |
| Median household income | $87,117/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US27) | 2024 ACS 1-year |
| Effective property tax rate | 1.02% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US27) | 2024 ACS 1-year |
| Deed tax | 0.33% | [Minnesota Department of Revenue](https://www.revenue.state.mn.us/deed-tax-rate) | Oct 28, 2026 |
| Mortgage registry tax | 0.23% | [Minnesota Department of Revenue](https://www.revenue.state.mn.us/mortgage-tax-rate) | Oct 28, 2026 |
| Deferred Payment Loan Plus, up to | $18,000 | [Minnesota Housing: Buy a Home and Refinance](https://www.mnhousing.gov/home/homeownership/buy-home-refinance) | Oct 29, 2026 |
| Start Up income limit, up to | $156,100 | [Minnesota Housing: Buy a Home and Refinance](https://www.mnhousing.gov/home/homeownership/buy-home-refinance) | Oct 29, 2026 |

## Minnesota’s deed tax and mortgage registry tax

Minnesota taxes the mortgage itself as well as the deed — one of 8 states in our closing cost data with a statewide mortgage tax. The **deed tax** is 0.33% of the net consideration — the price, less any mortgage the buyer takes over. The **mortgage registry tax** is 0.23% of the debt the mortgage secures, and the Department of Revenue makes the borrower liable for it. Both are a little higher in Hennepin and Ramsey counties, which add a small environmental response fund tax.

> **Worked example: Recording taxes on the median home, 10% down**
>
> | Tax | Based on | Amount |
> |---|---|---:|
> | Deed tax at 0.33% | $344,600 price | $1,137 |
> | Mortgage registry tax at 0.23% | $310,140 loan | $713 |
> | **Both** | | **$1,851** |
> 
> The registry tax follows the loan, so a larger down payment lowers it. The state doesn’t say who pays the deed tax; your purchase agreement does.

The [closing cost calculator](https://mail.mortgage-math-us.com/tools/closing-cost-calculator/?state=MN) adds both taxes to the lender, title and prepaid costs on your own price and loan.

## Start Up or Step Up: which lane you are in

Minnesota Housing doesn’t lend directly; participating lenders make its loans. Which program you use depends on whether you are a first-time buyer — no ownership interest in a principal residence in the last 3 years — and on your income and price.

*Minnesota Housing first mortgage programs*

| | Start Up | Step Up |
|---|---|---|
| Who | First-time buyers | Repeat buyers, or first-time buyers above Start Up limits |
| Income limit | Up to $156,100, by county | Up to $196,600, by county |
| Price limit | $515,200 in the 11-county Metro, $472,030 elsewhere | $515,200 in the Metro; a separate limit elsewhere |
| Down payment loans | Deferred Payment Loan, DPL Plus, Monthly Payment Loan | Monthly Payment Loan |
| Homebuyer education | At least one borrower | If all borrowers are first-time buyers |

The statewide median home is below both Start Up price limits, so a median-priced home fits the caps anywhere in the state; your income and county decide the rest. Minnesota Housing’s separate First-Generation Homebuyer Loan Program has closed after its one-time funds ran out.

## Deferred or monthly: picking a Minnesota Housing down payment loan

Minnesota Housing’s help is a loan, not a grant, and it only comes with a Minnesota Housing first mortgage.

- **Deferred Payment Loan Plus (Start Up):** up to $18,000 with no interest and no monthly payments. The whole amount comes due at the end of the mortgage term, or sooner if you sell, move out, refinance outside Step Up or pay off the first mortgage. The standard Deferred Payment Loan works the same way with a lower maximum.
- **Monthly Payment Loan (Start Up or Step Up):** up to $14,000, repaid over 15 years at the same rate as your first mortgage. It raises your monthly payment but disappears long before the first mortgage does.

> **Worked example: Start Up buyer, median home, 3% down with DPL Plus**
>
> Cash needed: the $10,338 down payment, closing costs from $6,892 at the low end of the CFPB range, and a $769 mortgage registry tax on the $334,262 loan — about $17,999 in all. A full $18,000 DPL Plus would cover roughly all of it, though closing costs toward the high end of the range would leave a gap to fill from savings. The monthly payment on the first mortgage, with PMI, tax and insurance, comes to about $2,879; the deferred loan adds nothing to it.

## A month of payments on Minnesota’s median home

> **Worked example: $344,600 home, 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Monthly |
> |---|---:|
> | Principal and interest on $310,140 | $2,114 |
> | Property tax at 1.02% | $293 |
> | Homeowners insurance at the national $4.90 per $1,000 | $141 |
> | PMI (midpoint of Freddie Mac’s range) | $155 |
> | **Total** | **$2,702** |

Open the [payment calculator](https://mail.mortgage-math-us.com/tools/mortgage-payment-calculator/?price=345000&down=10&tax=1.02&state=MN) with these Minnesota inputs to try other prices or down payments.

## Income against price

Minnesota’s median household income of $87,117 ranks 15th of 51 and sits above the US median; the median home value ranks 24th and is below the national figure. At Freddie Mac’s 30% guideline, that income supports $2,178 a month — about **$278,000** with 10% down at today’s average rate, which falls $66,600 short of the median home value. Check your own numbers in the [affordability calculator](https://mail.mortgage-math-us.com/tools/affordability-calculator/?state=MN&income=87117).

Ownership runs high: 71.6% of occupied homes are owner-occupied, the 10th-highest share in the country. Property tax takes 1.02% of value a year on average, above the national 0.89% and 17th of 51 — your bill depends on the city, county and school district levies where you buy.

## Frequently asked questions

### What is the mortgage registry tax in Minnesota?

It is a state tax of 0.23% on the debt a mortgage secures, due when the mortgage is recorded. The borrower is liable for it — about $713 on a 10%-down loan for the median $344,600 home.

### How much is the deed tax in Minnesota?

The deed tax is 0.33% of the net consideration, slightly more in Hennepin and Ramsey counties. On the median home that is about $1,137. Your purchase agreement decides who pays it.

### What are the income limits for Minnesota Housing Start Up?

Start Up income limits vary by county and go up to $156,100. Purchase prices are capped at $515,200 in the 11-county Metro area and $472,030 elsewhere.

### How much down payment assistance can you get in Minnesota?

With a Start Up first mortgage, Minnesota Housing’s Deferred Payment Loan Plus offers up to $18,000 at 0% with no monthly payments. The Monthly Payment Loan, available with Start Up or Step Up, offers up to $14,000.

### What is the property tax rate in Minnesota?

Census figures put the median Minnesota homeowner’s bill at $3,501 a year, an effective rate of about 1.02% of home value.

### Is Minnesota’s First-Generation Homebuyer Loan Program still open?

No. Minnesota Housing says the program’s one-time funds have been used up and it no longer accepts loan commitments. Start Up and its down payment loans remain available through participating lenders.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US27) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US27) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US27) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [Minnesota Department of Revenue](https://www.revenue.state.mn.us/deed-tax-rate) — State real estate transfer tax (Oct 28, 2026)
- [Minnesota Department of Revenue](https://www.revenue.state.mn.us/mortgage-tax-rate) — State tax on recording a mortgage (Oct 28, 2026)
- [Minnesota Housing: Buy a Home and Refinance](https://www.mnhousing.gov/home/homeownership/buy-home-refinance) — Minnesota Housing Deferred Payment Loan Plus (Start Up), up to; Minnesota Housing Start Up purchase price limit, 11-county Metro area; Minnesota Housing Start Up purchase price limit, counties outside the Metro area (Oct 29, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum down payment on some conventional loans; Typical closing costs, low end (share of purchase price) (Oct 28, 2026)
- [42 U.S.C. 12704(14)](https://www.law.cornell.edu/uscode/text/42/12704) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=040XX00US27) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [Minnesota Housing: Buy a Home and Refinance](https://www.mnhousing.gov/home/homeownership/buy-home-refinance)
- [Minnesota Department of Revenue: Mortgage Registry Tax rate](https://www.revenue.state.mn.us/mortgage-tax-rate)
- [Minnesota Department of Revenue: Deed Tax rate](https://www.revenue.state.mn.us/deed-tax-rate)

_General information, not financial advice._