For fiscal year 2025, Lilydale recorded a median commercial property tax rate of 2.2%, ranking third-highest among cities in Dakota County, according to BlockShopper.com.
The county’s median commercial rate was 1.8% during the same period, putting Lilydale 0.4 percentage points above the median.
Of the 13 cities in Dakota County, commercial tax rates spanned from 1% in South St. Paul to 3.2% in Rosemount.
An analysis by the Lincoln Institute of Land Policy found that in 2024, major U.S. cities averaged a commercial property tax rate of 1.76%. Their study estimates that a $1 million property with $200,000 in fixtures would generate about $21,060 in annual taxes. Rates varied significantly, with some cities charging less than 1% and others up to 4%.
Various states implement classification systems that often lead to commercial, industrial, and apartment properties having higher effective property tax rates compared to residential properties. In certain locations, business tax rates can be several times those applied to homeowners. For instance, Charleston’s business rate can reach approximately six times the residential rate.
| 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 | 991 Sibley Memorial Highway | 2.8% |
| 2 | 981 Sibley Memorial Highway | 1.6% |
Note: Some property addresses may not be fully listed or could be missing due to limitations in data from the county assessor.
This article’s data comes from BlockShopper.com. The original source data is available here.