How to Calculate Residential Homestead Property Tax

To calculate property taxes for Agricultural, Seasonal Recreational, Commercial, or Industrial classifications please contact us at (952) 361-1910. 

The example below is based on a residential homestead property with an estimated market value of 200,000.  It is calculated using the tax capacity tax rate of 100.59018361% and the referenda market value rate of 0.24209864% for TAG 2506 in the City of Chanhassen. The calculations below are not applicable for TIF, Ag, Seasonal Recreational, & Commercial/Industrial parcels.

1. Determine the classification, referenda market value (RMV), and taxable market value (TMV) of the property. These are determined by the Property Assessment Office. TMV is the value that your property taxes are based on after deferrals, exclusions, and/or reductions. For this example the RMV is 200,000.
   
   
2. Multiply the TMV by the state legislature-mandated class rate percentages. Class rates are based on the classification of property and are uniform statewide. The class rate for residential homestead properties with a value less than 500,000 is 1%. The result of this calculation is called the tax capacity. 

Example: Taxable market value of $180,800 classified as residential homestead.
Calculate the Tax Capacity: 180,800  x  1.00%  =  1,808. 

3. Determine the accumulated tax rate for the property based on the taxing district (TAG) in which it is located. There are 75 different TAG tax rates in Carver County based on the unique combination of city, school district, and other taxing districts. The rates for this example are shown above.

4. Next calculate the tax capacity (TC) based tax: multiply the TC of the property by the accumulated tax capacity rate.

Example: calculate the tax capacity based tax
1,808   x   100.59018361%  =  $1,818.67

5.  Calculate the referenda market value (RMV) based tax: multiply the RMV of the property by the accumulated RMV rate.

Example: calculate the referenda market value based tax
200,000   x   0.24209864%  =  $484.20

 6. To determine the total tax: add the results of step 4 and step 5 above.

Example: determine total tax amount 
$1,818.67  +  $484.20   =  $2,302.87

7. Any special assessments charged to the property would be added to the total tax amount calculated above. This total is then rounded to the nearest even dollar and divided in half for your two installments.

If you want to calculate a specific taxing authority’s portion of the total tax: multiply the tax capacity by the tax rate by authority, and multiply the referenda market value by the RMV rate for that taxing authority.