Property Taxes in Stillwater, MN: A 2026 Guide for Homeowners

If you are looking at homes for sale in Stillwater or just opened your mailbox to find a Valuation Notice, you’ve probably got numbers swirling in your head. The listing price is one thing, but the monthly holding costs—specifically property taxes—are where the real budget math happens.

Minnesota’s property tax system can feel a bit like a riddle wrapped in a spreadsheet. It’s not a flat percentage of what you paid for the house, and it involves a few unique variables that don't exist in other states.

Whether you are already living in Stillwater MN or planning a move to Washington County, understanding how these numbers work is the best way to avoid sticker shock.

Let’s break down the costs, the 2026 updates, and what you actually need to budget.

When you pay your property tax bill, you aren't just writing a check to one place. Your payment is split up to fund the local services you use every day. In Stillwater, your tax dollars primarily support three main entities: Washington County, the City of Stillwater, and Stillwater Area Public Schools (ISD 834).

Compared to other parts of the country, Minnesota taxes can seem high, but compared to the rest of the Twin Cities metro, Stillwater is quite competitive. Generally speaking, the effective tax rate here hovers around 1.05% to 1.15% of a home's market value.

This means if you buy a house for $400,000, you aren't necessarily paying exactly 1.1% of that price, but it’s a solid baseline for rough math. However, your specific bill depends heavily on two things: your home’s assessed market value and its classification—most notably, whether it is your primary residence (Homestead).

If you are used to states where you just multiply your home value by a mill rate, Minnesota’s system requires an extra step. We use a formula involving "Net Tax Capacity." It sounds complex, but it’s essentially a way to weigh different types of property (like commercial vs. residential) differently.

Here is the simplified flow of how the county figures out your bill:

The most important number for you to know is the class rate. For a standard residential homestead, the rate is 1.00% on the first $500,000 of value and 1.25% on any value above that. This tiered system helps keep taxes slightly lower for median-priced homes.

If you have been reading older articles about Minnesota taxes, be careful—the numbers have changed recently. The biggest update for taxes payable in 2025 involves the Homestead Market Value Exclusion.

Legislative changes have increased the limits for this exclusion, which is great news for many owners. However, there is a catch. The exclusion is designed to help owners of low-to-moderate value homes. As home values rise, the exclusion amount decreases.

For taxes payable in 2025, the exclusion phases out completely for homes valued at roughly $517,200 or more. If your home is valued above this cap, you will pay tax on the full market value with no exclusion.

On the flip side, local governments are facing inflation just like households are. You will likely see levy increases this year. The City of Stillwater proposed a levy increase of approximately 7.8%, and Washington County proposed an increase around 5.8%. These funds go toward maintaining infrastructure, public safety, and parks—all the things that make relocating to Stillwater MN attractive in the first place.

Let’s take the abstract math and apply it to a real-world scenario. Assume you are looking to buy a single-family home in Stillwater.

Scenario:

First, we look at the exclusion. Since $450,000 is under the $517,200 cap, this home qualifies for a partial exclusion. This lowers the taxable market value slightly, meaning you aren't taxed on the full $450k.

Next, we calculate the Net Tax Capacity. We take that reduced taxable value and multiply it by 1.00% (the residential class rate).

Finally, we apply the total tax rate (County + City + School + Special Districts) to that capacity number and add in any referendum levies that apply to the full market value.

The Result: For a $450,000 home in Stillwater, you can expect an annual tax bill in the range of $4,800 to $5,200. This shakes out to roughly $400–$435 per month, which you would typically wrap into your monthly mortgage payment.

Once you get the bill, when do you actually have to pay it? Minnesota spreads the burden out over two payments during the year.

For many homeowners, this process is invisible. If you have a mortgage, your lender likely collects a portion of your taxes every month in an escrow account and pays Washington County on your behalf. You will still receive a "Truth-in-Taxation" statement or a property tax statement for your records, but you don’t need to write the check yourself.

If you own your home outright or waived escrow, you are responsible for paying directly. You can do this online via the Washington County website (e-checks are usually free or cheap, while credit cards carry a fee), by mail, or in person at the Government Center in Stillwater.

Be careful with those dates. The penalty for late payment starts accruing the very next day and increases the longer you wait.

Sometimes, you might open your Valuation Notice in March and think, "There is no way my house is worth that much." If you believe the Estimated Market Value (EMV) is incorrect, you have the right to appeal.

It is important to know that you cannot appeal just because your taxes are "too high." You must prove that the value assigned to your home is higher than what it would actually sell for in the current market, or that there is a factual error (like the county listing 3 bathrooms when you only have 2).

The process generally starts by contacting the Washington County Assessor to discuss the valuation. If that doesn't resolve it, you can attend an Open Book meeting or appeal to the Board of Appeal and Equalization in April or May.

Beyond the standard Homestead Exclusion, there are specific programs designed to help different demographics manage housing costs.

If you are weighing Woodbury vs Stillwater or looking at Lake Elmo, taxes are often a deciding factor.

There isn't one single "flat rate" because it depends on your specific school district boundaries and special assessments. However, the effective tax rate typically lands between 1.05% and 1.15% of your home’s market value.

If you don't use a mortgage escrow, you can pay online through the Washington County website, via mail, or in person at the Government Center. Electronic checks usually have lower service fees than credit card payments.

They are generally competitive with each other. While Woodbury has a larger commercial tax base to help absorb costs, individual property taxes depend heavily on the specific home value and school levies.

Property taxes are due in two equal installments. The first half must be paid by May 15, and the second half is due by October 15 to avoid penalties.

For taxes payable in 2025, the Homestead Market Value Exclusion reduces your taxable value if your home is worth less than roughly $517,200. If your home is valued above that amount, you do not receive the exclusion and pay taxes on the full value.