Two Taxes, Two Different Bases, and a Sunset in 2028
Program and regulatory figures verified October 9, 2026. Details change; confirm your scenario with us.
The deed tax follows the price and the mortgage registry tax follows the loan, so the second one is the only Minnesota closing-cost line your down payment changes.
The two taxes
| Tax | Rate | Charged on | Statute |
|---|---|---|---|
| ★ Deed tax | .0033 (0.33%) | the net consideration: the price | §287.21 subd. 1(b) |
| ★★ Mortgage registry tax | .0023 (0.23%) | ★ "the debt or portion of a debt that is secured by any recorded mortgage" | §287.035 |
§287.21 also sets a floor: $1.65 where there is no consideration or the consideration is $3,000 or less.
★★ Why the second one behaves differently
The deed tax is fixed by the price you agreed. Nothing you do at the financing stage changes it.
The mortgage registry tax is charged on the debt. A larger down payment means a smaller loan means a smaller tax. It is the only line on a Minnesota settlement statement that the size of your down payment moves directly.
★ Rough arithmetic, which is all it is: the deed tax runs about $330 per $100,000 of price, and the mortgage registry tax about $230 per $100,000 borrowed.
★ For a physician putting little down on a portfolio loan, the mortgage registry tax is at its proportional maximum. That is not a reason to change your down payment, and we are not advising you to; it is a line to have in the budget rather than discover at the table.
★★ Hennepin and Ramsey, and the date in the statute
Both counties impose an additional tax on each. From Minn. Stat. §383B.80 (Hennepin): "The rate of the mortgage registry tax equals .0001 of the principal…The rate of the deed tax equals .0001 of the amount." Minn. Stat. §383A.80 (Ramsey) uses the same figures.
★★ And both sections close with the same sentence: "The authority to impose the tax under this section expires January 1, 2028."
| Where | Deed tax | Mortgage registry tax |
|---|---|---|
| Most of Minnesota | .0033 | .0023 |
| ★ Hennepin (Minneapolis) | .0033 + .0001 | .0023 + .0001 |
| ★ Ramsey (St. Paul) | .0033 + .0001 | .0023 + .0001 |
| ★★ Until | ★★ 1 January 2028, per both statutes | |
★ The add-on itself is small, about $10 per $100,000 on each tax. The interesting part is the sunset, which is written into the law and which nothing we read about Minnesota closing costs mentions.
★ We are not predicting whether the legislature extends it. A statute that says it expires on a date is a fact; what happens next is a future event and we do not publish guesses.
★ What we are not telling you
- Who pays either tax. Allocation is a contract and local-custom question, and we are the lender, not your agent or attorney.
- Other counties' local additions. We publish Hennepin and Ramsey because they are in statute and we read them. If another jurisdiction adds anything, your title company will have it.
- Exemption analysis beyond the §287.21 floor. That is legal work.
Ask your closing agent for the jurisdiction-specific figure while you are under contract.
The other Minnesota numbers
The loan forgiveness geography, which is where the real money is, and the student loan payment, which is what decides the file.
The five-city rule · Student debt.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
What is the deed tax in Minnesota?
Minnesota Statutes section 287.21 sets the deed tax at .0033 of the net consideration, which is 0.33 percent of the price, or about $330 per $100,000. A $1.65 tax applies where there is no consideration or the consideration is $3,000 or less.What is the Minnesota mortgage registry tax?
Minnesota Statutes section 287.035 sets it at .0023 of the debt, or portion of a debt, that is secured by any recorded mortgage. That is 0.23 percent of the loan amount, about $230 per $100,000 borrowed, and it falls as the loan falls.Do Hennepin and Ramsey counties charge extra?
Yes. Each imposes an additional mortgage registry tax of .0001 of the principal and an additional deed tax of .0001 of the amount, under sections 383B.80 and 383A.80 respectively. Both statutes state that the authority to impose the tax expires January 1, 2028.Does my down payment affect Minnesota closing taxes?
It affects one of the two. The deed tax is charged on the price and does not move. The mortgage registry tax is charged on the debt secured by the recorded mortgage, so a larger down payment produces a smaller loan and a smaller tax.Who pays the deed tax in Minnesota?
Allocation between buyer and seller is a matter for the purchase contract and local practice, which is a question for your agent and attorney rather than your lender. Your closing agent computes the charge for the settlement statement.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about physician mortgage financing, not a loan commitment and not legal, tax or financial advice. The Minnesota Rural and Urban Physician Loan Forgiveness Programs are administered by the Office of Rural Health and Primary Care at the Minnesota Department of Health, not by Cornerstone; their terms, award amounts, eligibility and application cycles are set by that office and change, and payments are subject to funds appropriated by the Minnesota State Legislature. Minnesota Statutes quoted here are reproduced so you can take them to your own attorney. Figures carry the date we verified them against primary sources. Physician-loan program terms, eligible degrees and overlays are set by the lender and change. All loans are subject to borrower, property and program qualification.