Closing costs by state
Closing costs in Minnesota
Closing costs in Minnesota run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $10,055. Minnesota charges a state transfer tax of 0.33% of net consideration (state deed tax, Minn. Stat. 287.21; minimum $1.65), about 0.33% of the price, and the seller customarily pays it. Hennepin and Ramsey counties add an Environmental Response Fund deed tax of 0.01% of net consideration. No city transfer taxes.
Last verified ·Sources:revisor.mn.gov·revisor.mn.gov
The rules
What Minnesota does differently
- State transfer tax
- 0.33% of net consideration (state deed tax, Minn. Stat. 287.21; minimum $1.65) (about 0.33% of the price at $400,000).
- Who pays it
- Seller, by custom.
- County and city add-ons
- Hennepin and Ramsey counties add an Environmental Response Fund deed tax of 0.01% of net consideration. No city transfer taxes.
- Attorney at closing
- Minnesota does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- Who pays the owner’s title policy in Minnesota varies by county or region; it is set by local custom and the contract.
- Notes
- On a $400,000 sale the deed tax is $1,320 (plus $40 in Hennepin or Ramsey). Minnesota also charges a mortgage registry tax of 0.23% on the buyer's mortgage, which is separate from the deed tax.
- revisor.mn.gov — “when the consideration ... exceeds $3,000, the tax is .0033 of the net consideration.”
- revisor.mn.gov — “The rate of the deed tax equals .0001 of the amount.”
Worked example
A $400,000 home in Minnesota, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax follow Minnesota’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Total (2.514% of price) | $10,055 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.33%) | $1,320 |
| Total | $26,320 |
Questions
What people ask about Minnesota
- Who pays the transfer tax in Minnesota?
- Minnesota charges a state transfer tax of 0.33% of net consideration (state deed tax, Minn. Stat. 287.21; minimum $1.65), about 0.33% of the price, and the seller customarily pays it. Hennepin and Ramsey counties add an Environmental Response Fund deed tax of 0.01% of net consideration. No city transfer taxes.
- Do you need an attorney to close on a house in Minnesota?
- Minnesota does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in Minnesota?
- Who pays the owner’s title policy in Minnesota varies by county or region; it is set by local custom and the contract.
- How much are seller closing costs in Minnesota?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $26,320 for the seller, including $1,320 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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