Discover how the Mortgage Tax Calculator (MRT) works in Hennepin County, Minnesota, including the additional Environmental Response Fund (ERF) fee. Learn how to calculate MRT on any mortgage, with clear examples like a $100,000 loan resulting in $240 total MRT and ERF. Find out how to claim exemptions or document your tax basis using Minnesota’s MRT1 form. Stay informed and avoid surprises when recording your mortgage.
Mortgage & Deed Tax Calculator
Hennepin County Tax Calculation Table (2026)
Use this table to estimate your closing costs based on the total mortgage amount:
| Mortgage Amount | State MRT (0.0023) | Hennepin ERF (0.0001) | Total Tax Due |
| $200,000 | $460 | $20 | $480 |
| $350,000 | $805 | $35 | $840 |
| $500,000 | $1,150 | $50 | $1,200 |
| $750,000 | $1,725 | $75 | $1,800 |
Exemptions and the MRT1 Form
Not every mortgage requires the full tax payment. If you believe your transaction is exempt for example, a mortgage given to a government agency or certain types of refinancing you must document this using the Minnesota MRT1 Form.
Common reasons for exemption/reduction:
- Mortgages to government entities.
- Correcting a technical error in a previously recorded mortgage.
- Adding additional security for a debt where the tax has already been paid.
How to Pay and Record Your Mortgage
In Hennepin County, the tax is typically paid at the time of recording the mortgage.
- Payee: Checks should be made payable to the Hennepin County Recorder.
- Where to File: You can submit documents in person at the Hennepin County Government Center in downtown Minneapolis or via mail to the Recorder's office.
- Pro Tip: Most homeowners pay this through their title company or lender during the closing process, but it is wise to double-check your Closing Disclosure (CD) to ensure the $0.0024$ rate is applied correctly.
Summary for Homebuyers
- Hennepin County is slightly more expensive: Expect to pay an extra $10 for every $100,000 of mortgage debt compared to non-metro counties.
- ERF Tax: This fee supports local environmental clean-up and brownfield redevelopment projects within the county.
- Calculations: Multiply your loan amount by 0.0024 to get your total tax liability.
Conclusion
Hennepin County Mortgage Registry Tax is essential for a smooth closing. While Minnesota’s base MRT rate is $0.0023$, Hennepin County’s additional ERF fee brings the total to $0.0024$. Whether you are buying in Minneapolis or Bloomington, calculating these recording fees and using the MRT1 form for exemptions will save you time. Plan ahead to manage your Hennepin County closing costs effectively in 2026.
FAQs
What is the MRT rate in Hennepin County?
The total rate is 0.0024. This includes the standard Minnesota State MRT of 0.0023 plus the Hennepin County Environmental Response Fund (ERF) fee of 0.0001.
How is the Hennepin County MRT calculated?
Multiply your total mortgage debt by 0.0024. For example, a $300,000 mortgage incurs a $720 tax ($690 state tax and $30 ERF fee).
What is the ERF fee in Hennepin County?
The ERF (Environmental Response Fund) is a $0.0001$ surcharge unique to Hennepin and Ramsey Counties, used for local environmental cleanup and brownfield redevelopment projects.
Who pays the Mortgage Registry Tax in MN?
Typically, the borrower (buyer) pays the MRT at closing. It is collected by the Hennepin County Recorder’s Office when the mortgage deed is officially recorded.
How do I claim an MRT exemption?
To claim an exemption, you must submit the Minnesota MRT1 Form. This is common for government-backed loans or specific mortgage modifications and refinancing scenarios.
Is MRT the same as Deed Tax?
No. MRT is a tax on the mortgage debt, while Deed Tax (0.0033) is a separate tax paid on the property’s sale price.
Where do I pay the Hennepin County MRT?
Payment is made to the Hennepin County Recorder. Most homebuyers handle this through their title company or lender during the final closing process in Minneapolis.
Does MRT apply to mortgage refinancing?
Yes, but you may only owe tax on the newly borrowed amount (the "new money") if the original MRT was already paid on the existing balance.
