By David Arbit on Wednesday, June 28th, 2017
Have you ever been asked “How do taxes compare between Minneapolis and Edina?” Odds are if you’re reading this, there’s a good chance you’ve been asked that. And if not, you could be next! To help answer that question, we’ve created a table that compares the median sales prices in both cities along with the median tax amount and weighted tax rate.
The findings might be surprising to some. Ultimately, the median tax amount as a percentage of sales price is 4/100ths (“four one-hundredths”) higher in Minneapolis than in Edina. That said, even though Minneapolis residents (based on 2017 YTD sales) pay a higher share of their property’s value, they still pay about $2,000 less per year since values are lower. Conversely, even though Edina residents (again based on a recent sampling) pay about $2,000 more per year in taxes, they actually pay a lower share based on their home’s value compared to Minneapolis residents. Put another way, home prices in Edina were 85.1 percent higher than in Minneapolis, while annual property taxes in Edina were only 78.3 percent higher than Minneapolis. Minneapolis boasts more affordable homes and property taxes, but Edina residents pay less in taxes relative to their values.
So what does this mean? Well, the difference between 1.18 percent and 1.14 percent just isn’t great enough to alter consumer behavior in most situations. Taxes are only a part of the decision-making process. Some of our previous research showed a Twin Cities region-wide median tax rate of 1.21 percent, for bench-marking and comparison.
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