The Olmsted County budget: the role of the property tax levy

  • News
  • Nov 9, 2026

As shared last month, Olmsted County is preparing to finalize its budget for 2027. In this article, we will share more about the property tax levy.

Property taxes help pay for important local services that state and federal funding does not fully cover. This includes public safety, roads and bridges, health and human services, parks, and services like elections, licensing, and recordkeeping.

Over the past five years, Olmsted County’s levy increase has ranged from 4.9 to 7.9 percent, helping offset inflation, population growth, and rising demand for services. 
This year, Olmsted County faces rising costs for things like fuel, technology, wages, and equipment. At the same time, state and federal funding doesn’t always keep up. As a result, counties rely on property taxes to fill the gap to continue providing services residents depend on.

This coming year, budget pressures have also increased because of cost shifts from the federal and state governments to counties. Across the state, preliminary levies for 2027 show many counties with double-digit increases, reaching as high as 22 percent.

A levy increase doesn’t always mean the county is spending more. Counties use a mix of money from property taxes, grants, fees, and state and federal funding. These sources work together to support essential services. A levy increase also does not mean an individual property owner will see an increase in their taxes.

Check out this video and graphic to learn more about how property taxes work in the State of Minnesota.

Graphic that depicts the 2027 preliminary county levy. It shows that the levy for 2026 was $143.24 million; For 2027, it's $149.77 million, so it's up 4.56%. It also depicts that property values and new development increased and that a larger tax base helps offset cost. It also indicates that individual property tax depends on property classification and value.

Want to learn more? Stay tuned for additional information in the coming weeks. Residents are also encouraged to attend public meetings, including the Truth in Taxation meeting on December 1, 2026, at 6 p.m. and the final budget approval meeting on December 15, 2026, at 6 p.m. You can attend in person or listen online. More information about county public meetings is available on our website.