Tracking your tax dollars: What do your Minneapolis property taxes pay for?

The Minneapolis City Council Budget Committee held its first meeting on Friday morning, where community members could speak out regarding the proposed $2.03 billion city budget.

Minneapolis Mayor Jacob Frey is proposing a 7.8% property tax increase for 2026, a hike he says is necessary to maintain core city services.

Earlier in the week, the Board of Estimate and Taxation set the maximum tax levy possible at 8.0%.

After Friday’s meeting, 5 EYEWITNESS NEWS asked City Council President Elliott Payne about the proposed tax increase, he pointed out that last year the city council dropped taxes lower than the Mayor Frey had proposed.

“We saw last year we were able to get that number down quite substantially,” Payne said. “I think there’s a lot of appetite on City Council to do that again this year.”

The Council has until December to finalize the 2026 budget and determine property tax rates.

What will my 2026 City of Minneapolis property taxes pay for?

The city of Minneapolis posted online that the median home has an estimated value of $330,000 this year.

According to the city, with a 7.8% property tax increase, a Minneapolis family could pay about $2,272 in property taxes in 2026.

According to the City of Minneapolis, here’s where those $2,272 tax dollars go:

General Government Services: $655

Police: $500

Parks: $393

Capital and Debt Service: $271

Fire: $210

Public Works: $165

Pensions: $57

Minneapolis Public Housing Authority: $21

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