Minnesota Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers

Minnesota charges a state deed tax of 0.33% of net consideration, due when the deed is presented for recording. On a hypothetical $300,000 sale that is $990. The statute does not say which party pays, so your contract decides. Commission is negotiable and comes on top, along with your mortgage payoff.

Minnesota’s deed tax is one number

Many states stack a state tax on a county or city tax. Minnesota keeps the main transfer cost simple: a state deed tax charged on the deed when it is presented for recording.

Minnesota Statutes section 287.21 sets the rate at 0.33% (0.0033) of net consideration for transfers over $3,000. When there is no consideration, or the consideration is $3,000 or less, the tax is $1.65.

Rate table

Consideration	Deed tax
$3,000 or less (or none)	$1.65 flat
Over $3,000	0.33% of net consideration

Worked example on a hypothetical $300,000 sale

Using net consideration of $300,000:

• $300,000 x 0.0033 = $990

At a hypothetical $200,000 sale the tax would be $660, and at $400,000 it would be $1,320. The tax scales evenly with price, which makes it easy to model. If your deal has deductions that change net consideration, your title company applies the statute’s definition.

Who pays

The statute imposes the tax on each deed or instrument that conveys real property in the state, due at the time a taxable deed is presented for recording. It does not name the grantee or the seller as the payer. Who bears the tax is set by your purchase contract. Ask your title company or closing attorney what is customary locally.

The same math at other prices

Hypothetical net consideration	Deed tax at 0.33%
$200,000	$660
$300,000	$990
$400,000	$1,320
$500,000	$1,650

Every extra $100,000 of price adds $330. That straight-line pattern is easy to build into a flip model: take your expected resale price and multiply by 0.0033.

Entity conversions and low-consideration deeds

Two situations in the statute are worth knowing even if you never use them. First, a deed with no consideration, or consideration of $3,000 or less, carries the flat $1.65 amount rather than the percentage. Second, the statute says certain entity conversions, such as a corporation to a limited liability company or a partnership to a limited partnership, do not grant, assign, transfer or convey real property, so the conversion itself does not trigger deed tax.

Neither situation applies to a normal arm’s-length sale of a house. If you hold property in an entity and plan to restructure before a sale, talk to a closing attorney first, because the facts of your deal decide which treatment applies.

Planning checklist before you list

1. Estimate net consideration at your likely sale price and multiply by 0.0033.
2. Read the cost clause in your purchase contract to see who bears the tax.
3. Ask your title company to confirm the figure before you sign.

The other seller costs

• Agent commission. Negotiable.
• Mortgage payoff. Your balance plus interest through the payoff date.
• Property tax proration. Set by your contract and shown on the closing statement.
• Title insurance and recording. We did not source whether Minnesota promulgates title insurance rates, so ask your title company.

What this means for investors

The tax follows each deed. A flipper meets it on the purchase and again on the resale, if the contract puts it on the investor side both times. At 0.33% the combined bite across two deeds is small compared with other states, but it still belongs in the spreadsheet.

A double close means two closings and two sets of costs. Each deed is a conveyance with its own consideration, so the tax is assessed on each one, and the second closing also needs its own funding and title work. An assignment uses a single closing. Ask your title company how the tax would apply to the consideration in your structure.

For your maximum allowable offer, subtract the deed tax on the resale (and on the purchase if your contract puts it on you) from the numbers. On a $300,000 resale, that is $990. It is a small line next to commission and rehab, which is exactly why it gets forgotten.

Questions to ask your title company

1. What is the exact transfer figure for my price, county and deed type?
2. Does any exemption apply to my transfer, and what paperwork proves it?
3. What does my contract say about who bears the tax, and is that customary here?
4. If I am using a double close or an assignment, how is the tax computed on each document?
5. Are there local or recording charges that are not in the state schedule?

Get these answers in writing before you set a list price or submit an offer. A number that is off by a few hundred dollars can decide a thin deal.

Run your numbers

Automize CRM includes a closing cost calculator for modeling a sale before you list or make an offer.

This is general information, not legal or tax advice. Confirm your exact figures with your title company or closing attorney.

Sources

• Minnesota Office of the Revisor of Statutes: Minn. Stat. 287.21, Deed Tax

Rates checked October 24, 2026. General information, not tax or legal advice.

Common questions

What is the Minnesota deed tax rate?

Minnesota Statutes section 287.21 sets the state deed tax at 0.33% of net consideration for transfers over $3,000. Where there is no consideration, or the consideration is $3,000 or less, the tax is $1.65. The tax is due at the time a taxable deed is presented for recording.

Who pays the deed tax in Minnesota?

The statute taxes each deed or instrument that conveys real property and makes the tax due when the deed is presented for recording. It does not name the buyer or the seller as the payer. Who bears the cost is set by your purchase contract, so ask your title company what is customary locally.

Is there a minimum deed tax in Minnesota?

Yes. Under section 287.21, a deed with no consideration, or with consideration of $3,000 or less, carries a flat $1.65 tax. Above $3,000, the tax is 0.33% of net consideration. Most arm’s-length sales of houses are well above that threshold.

Does converting a company to an LLC trigger Minnesota deed tax?

The statute says certain entity conversions, such as a corporation to an LLC or a partnership to a limited partnership, do not grant, assign, transfer or convey real property, so the conversion itself avoids deed tax. If you hold property in an entity, talk to a closing attorney before restructuring.