Minnesota Closing Costs for Buyers: How Much You'll Pay

Transfer tax in Minnesota

All other Minnesota counties charge only the base state Deed Tax rate of 0.33% (0.0033) on the deed and the base state Mortgage Registry Tax rate of 0.23% (0.0023) on the amount of debt secured by the buyer's mortgage, both administered by the county but set and collected under state statute; only Hennepin and Ramsey add the 0.01% Environmental Response Fund surcharge to each tax.

Who pays: Minnesota statute does not assign who pays the Deed Tax, but standard practice (and most purchase agreements) has the SELLER pay it as the party presenting the deed for recording. The Mortgage Registry Tax is different: Minn. Stat. 287.05 makes 'the mortgagor' (the buyer/borrower) the person statutorily liable for the tax, since it taxes the buyer's own mortgage. Source

Worked example: On a $354,500 home in Hennepin County: Deed Tax (seller-paid) = $354,500 x 0.0034 = $1,205.30. Mortgage Registry Tax (buyer-paid, assuming a mortgage close to the purchase price) = $354,500 x 0.0024 = $850.80. In any other Minnesota county, the same transaction would be Deed Tax $1,169.85 (0.33%) and Mortgage Registry Tax $815.35 (0.23%).

How much is title insurance in Minnesota?

On a $354,500 home in Minnesota, an owner's title policy costs about $1,224 and the lender's policy about $165 when both are issued together (the simultaneous-issue discount). The buyer customarily pays for the owner's policy and the lender's policy. Minnesota uses a filed uniform rate: insurers file one rate schedule with the state, so premiums are the same from company to company and shopping only affects settlement fees. Premiums computed from First American Title Fee Calculator (filed rates), Hennepin County, Minnesota, read September 11, 2026.

Who pays the owner's policy: buyer (First American's calculator default allocation for Hennepin County; negotiable by contract) Source

Owner's policy on the full $354,500 price and the lender's policy on an 80% loan ($283,600), quoted together so the simultaneous-issue rate applies; First American filed rates for Hennepin County. NOT VERIFIED.

Minnesota-specific buyer costs on a $354,500 home

These are the line items set by Minnesota law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.

Do you need a closing attorney in Minnesota?

Not required. Minnesota does not require an attorney to conduct a residential real estate closing. Minn. Stat. 82.641 requires real estate closing agents to be licensed by the Department of Commerce, but subdivision 6 exempts (and thus authorizes to close without that separate license) title insurers and title insurance agents, licensed attorneys, licensed real estate brokers/salespersons, and certain banks and lenders, meaning title companies and other non-attorney closers routinely and lawfully conduct Minnesota closings alongside attorneys. Source

Recording fees

Recording the deed costs $46 and the mortgage $46 at the Hennepin County Recorder (fee amounts are set statewide by Minn. Stat. 357.18, subd. 1, and apply the same at every Minnesota county recorder's office, including Hennepin, the state's largest county). Fee schedule

Other Minnesota specifics

• Environmental Response Fund (ERF) surcharge. Hennepin and Ramsey counties add a 0.01% Environmental Response Fund tax on top of both the state Deed Tax and the state Mortgage Registry Tax; no other Minnesota county charges this surcharge. Source
• Torrens (registered land) registrar of titles fees. For property registered under the Torrens system (common in parts of Hennepin and Ramsey counties), recording is done through the registrar of titles rather than the county recorder, under a separate fee schedule in Minn. Stat. 508.82 and 508A.82, which can differ from the standard $46 recorder fee. Source

How much are closing costs in Minnesota?

For a buyer, closing costs usually run 2% to 5% of the purchase price. On Minnesota's median-priced home (about $354,500), that is roughly $7,090 to $17,725, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.

What closing costs include

Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Minnesota transfer tax, plus prepaid property taxes and homeowners insurance.

Why Minnesota closing costs vary

The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter.

How a rebate offsets Minnesota closing costs

Buyer commission rebates are legal in Minnesota. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $354,500 home, a 2% rebate is about $7,090, often enough to cover much of the closing bill.

See Minnesota buyer rebates and how to get one →

Sources

• Minnesota transfer tax statute
• Who pays the transfer tax
• Hennepin County transfer tax
• First American Title Fee Calculator (filed rates), Hennepin County, Minnesota, read September 11, 2026
• Minnesota closing attorney rule
• Hennepin County Recorder (fee amounts are set statewide by Minn. Stat. 357.18, subd. 1, and apply the same at every Minnesota county recorder's office, including Hennepin, the state's largest county) recording fees
• Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price

Minnesota figures last verified against official sources on September 11, 2026.