Selling land with back taxes in Minnesota

How Minnesota handles unpaid property taxes

Minnesota enforces unpaid taxes against the land itself, not just a lien on it. Once your redemption rights end, ownership passes, and in some states that happens before any auction. The rule below says when, so plan to sell before then.

The redemption rule in Minnesota: Unpaid taxes lead to a tax judgment, and the land is sold to the state, with no private bidders. For most land, the owner can redeem for 3 years from that sale, or 1 year in a targeted community unless homesteaded. Redemption ends only after the county serves a notice of expiration, at the later of the second Monday in May or 60 days after service. A court can cut the period to 5 weeks for abandoned property or certain vacant lots in targeted neighborhoods. If not redeemed, title vests in the state, but an owner can still repurchase before the county's public sale. If the sale brings more than the taxes and costs, the former owner can claim the surplus within 6 months of the county's notice.

Law: Minn. Stat. 280.01, 281.17, 281.173, 281.174, 281.18, 281.23 and 282.005. Rules change, so confirm with the county tax collector.

What to do before the tax sale

• Call the county tax office and get the exact amount owed and the next sale date.
• Decide whether you want to keep the land. If not, selling before the sale stops the interest and penalties from growing.
• Gather the parcel number and any tax bills. A buyer and the title company need them to order a payoff.

Minnesota land at a glance

• Average farm real estate value: $6,950 per acre (2026, USDA).
• Average property tax on farmland: about $18.96 per acre per year (2022 Census of Agriculture).
• Transfer tax: State deed tax of 0.33% of net consideration when it exceeds $3,000, or a flat $1.65 at $3,000 or less. Hennepin and Ramsey Counties add 0.01% until January 1, 2028, for 0.34% in total. Net consideration excludes liens and encumbrances that stay on the land.
• Seller disclosure: Minnesota requires a well disclosure for every sale of real property, including vacant land, listing all known wells or stating there are none (103I.235). The seller must also disclose in writing how sewage at the property is managed (115.55) and any known methamphetamine production (152.0275). The general disclosure statute (513.52 to 513.60) covers only single-family residential property, so it does not reach vacant land.

These are statewide averages, not an appraisal. See selling land in Minnesota for county values, or try the land value estimator.

How a cash sale handles this

Liberty Acres is a family-owned cash land buyer. We buy land anywhere in the US, in any condition, including land with back taxes, inherited land and land with no road access. We pay back taxes and all closing costs, use no agents and charge no commissions, and close through a title company, escrow company or real estate attorney who pays you by wire or check.

Common questions