South St. Paul recorded a median commercial property tax rate of 1% for fiscal year 2025—the lowest among Dakota County cities, according to BlockShopper.com.
The county’s median for the same period was 1.8%, placing South St. Paul 0.8 percentage points below that benchmark.
Among Dakota County’s 13 cities, commercial tax rates ranged from 1% in South St. Paul up to 3.2% in Rosemount.
South St. Paul’s median commercial tax rate was 1.7% in fiscal year 2024, ranking it fourth countywide at that time.
Across 53 major U.S. cities, commercial property tax rates averaged 1.76% in 2024, according to research by the Lincoln Institute of Land Policy. The institute estimates a $1 million property, including $200,000 in fixtures, would generate an annual tax bill of approximately $21,060. Commercial tax rates nationwide varied from below 1% in some cities to as high as 4% in others.
Multiple states use property classification systems that result in commercial, industrial, and apartment properties often facing higher effective tax rates than residential real estate. In certain jurisdictions, businesses may be taxed at rates several times greater than homeowners. For example, Charleston businesses can see rates roughly six times higher than residential properties.
| 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 | 424 Farwell Ave. | 1.4% |
| 2 | 417 Concord St. N. | 1.2% |
| 3 | 214 13th Ave. S. | 0.7% |
Note: Some property addresses may be incomplete or missing due to county assessor data limitations.
Data for this article was sourced from BlockShopper.com. The original information is available here.