Farmington’s median commercial property tax rate reached 1.7% for fiscal year 2025, ranking seventh among Dakota County municipalities, based on data from BlockShopper.com.
For the same period, Dakota County’s countywide median was 1.8%, putting Farmington 0.1 percentage points below the average.
Eagan matched the county median with a 1.8% median commercial property tax rate in fiscal year 2025.
The 13 cities within Dakota County saw rates ranging between 1% in South St. Paul and 3.2% in Rosemount.
Farmington placed ninth in the county in fiscal year 2024, with a median rate of 1.4%.
The 2024 average for commercial property tax rates across 53 major cities in the U.S. was 1.76%, based on a Lincoln Institute of Land Policy report. The analysis estimates an annual tax bill near $21,060 for a $1 million property with $200,000 in fixtures. Commercial property tax rates nationally varied from below 1% to as high as 4%.
Classification systems in many states may cause commercial, industrial, and apartment property owners to pay higher effective rates than residential owners. In some areas, business property tax rates are multiple times those for residential properties, such as in Charleston, where the rate can be about six times higher.
| Rank | City | Tax Rate % |
|---|---|---|
| 1 | Rosemount | 3.2% |
| 2 | West St. Paul | 2.3% |
| 3 | Lilydale | 2.2% |
| 4 | Lakeville | 2.1% |
| 5 | Burnsville | 2% |
| 6 | Apple Valley | 1.9% |
| 7 | Eagan | 1.7% |
| 7 | Farmington | 1.7% |
| 9 | Inver Grove Heights | 1.5% |
| 10 | Hastings | 1.4% |
| 11 | Mendota Heights | 1.2% |
| 12 | Hampton | 1.1% |
| 13 | South St. Paul | 1% |
| Rank | Address | Tax Rate % |
|---|---|---|
| 1 | 625 Heritage Way | 4.4% |
| 2 | 21210 Eaton Ave. | 2.4% |
| 3 | 109 Elm St. | 1.8% |
| 4 | 509 Third St. | 1.6% |
| 5 | 4640 Knutsen Drive | 1.3% |
| 6 | 519 Willow St. | 0.9% |
Note: Some property addresses may be incomplete or missing due to county assessor data limitations.
This article uses information from BlockShopper.com. The original data source is available here.