Fargo vs. Moorhead Property Taxes: What Homebuyers Need to Know

When buying a home in the Fargo-Moorhead area, it's easy to focus on listing prices and mortgage rates. But there's one cost that quietly adds up over the years... property taxes.

Whether you're moving across town or relocating from out of state, understanding how property taxes are calculated, how they vary by location, and where they're likely heading is key to making a smart, long-term financial decision.

Let's walk through everything you need to know and break down the most common questions I get from clients.

How Property Taxes Work

At their core, property taxes are the local government's way of funding essential services:  schools, infrastructure, public safety, parks, and more. The tax you pay depends on your home's value and your location's specific tax rate.

The formula is roughly the same in both states:

Taxable Value × Local Tax Rate – Credits/Exemptions = Property Tax Bill

But how each state defines "taxable value" and applies credits or exclusions is where the differences begin.

How Property Taxes Are Calculated in Fargo and Cass County

In North Dakota, property taxes are calculated using a two-step method based on the true and full value of your home — essentially its fair market value.

Here's how it works:

1. The True & Full Value of your home is reduced by 50% to determine the Assessed Value.
2. That Assessed Value is then multiplied by 9% to calculate the Taxable Value.

For example, a $300,000 home would break down like this:

• Assessed Value = $300,000 × 50% = $150,000
• Taxable Value = $150,000 × 9% = $13,500

That $13,500 taxable value is then multiplied by your local mill levy, which varies by city. One mill equals $1 in tax for every $1,000 of taxable value.

For example, if the total mill levy is 297.51, then $13,500 × 0.29751 = $4,016.39 in property taxes

This mill levy system applies across all of Cass County (not just Fargo), including West Fargo, Horace, and Casselton.

>> Resource: Cass County Property Tax page

Bonus Tip: Cass County offers a 5% discount if you pay your full consolidated tax by February 15 (not including special assessments or drain taxes).

Real Example: A $300,000 Home in Fargo vs. Moorhead

Let's say you're looking at a $300,000 home on either side of the river. Here's how your taxes might stack up based on current mill levy rates and local tax systems:

The difference? About $360 per year, or more than $10,000 over a 30-year mortgage.

Wait... What's a Mill Levy, and Why Does It Vary?

A mill is one-tenth of a cent. Cities, school districts, park boards, and counties each set their own number of mills annually. The total mill levy applied to your home depends on which taxing districts you live in.

Here's how four Cass County cities compare:

How Property Taxes Are Calculated in Moorhead and Clay County (Minnesota)

In Clay County, MN, property taxes are based on your home's estimated market value, minus any eligible exclusions or credits, and then multiplied by your local tax rate.

Unlike North Dakota's mill levy system, Minnesota uses a straightforward percentage-based formula, with tax capacity and class rates that vary by property type (residential, commercial, etc.).

For most homeowners, the process is simpler to understand, though property taxes tend to be slightly higher at face value.

Here's how it works for a typical residential property:

1. Estimated Market Value is determined annually by the county assessor.
2. If the home is your primary residence, the state applies a Homestead Market Value Exclusion, reducing the portion of your home's value subject to tax.
3. Your local tax rate (set by your city, county, and school district) is applied to this reduced value.
4. Special assessments (if any) are added to your final bill.

Tax Credits and Refund Programs in Minnesota

While the base property tax rate in Minnesota may be higher than in North Dakota, Minnesota homeowners benefit from several generous credit and refund programs:

Homestead Market Value Exclusion (MVHE)

This benefit applies to owner-occupied homes with a market value under $413,800. It reduces the taxable portion of your home's value, thereby lowering your property tax bill. The closer your home's value is to $76,000, the greater the exclusion you'll receive. This exclusion phases out as home values rise above that threshold.

Homestead Credit Refund Program (Form M1PR)

Minnesota homeowners may qualify for a refund on a portion of the property taxes paid, depending on their income and the property tax amount.

There are two types of refunds:

• Regular Homestead Credit Refund: Available to homeowners whose 2024 household income is below $139,320, and who owned and occupied the home on January 2, 2025. The refund amount is based on a sliding scale that factors in both income and property tax burden.

• Special Homestead Credit Refund: If your net property tax increased by more than 12% and at least $100 from the previous year, and you've owned the same home both years, you may qualify for a refund of up to $1,000, regardless of income.

Homeowners must file Form M1PR by August 15 of the year following the tax year to receive the refund.

Some homeowners receive refunds ranging from a few hundred to a few thousand dollars, something North Dakota currently does not offer.

>> Resource: Learn more about MN's Property Tax Refund Program here.

Common Questions I Hear From Buyers

"Aren't ND property taxes lower?"

Generally yes, but not always. Fargo's base rate is lower, but you have to factor in special assessments, especially in new neighborhoods.

"Where do these tax rates come from?"

Cities, school boards, and park boards set them annually. Final totals, called certified mill levies, are posted by the county auditor in late fall.

"Will these numbers change in 2025?"

Yes, likely. As of mid-2025, the 2025 mill rates haven't been finalized yet. The data used in this post reflects 2023–2024 budgets, the most recent available at the time of writing.

"Can I appeal my tax value?"

Yes! If you think your home's assessed value is too high, you can file a protest. You usually have to do this in the spring through your city assessor's office.

Smart Tips for Planning Ahead

Understanding how property taxes work is one thing, planning around them is another.

Whether you're buying in Fargo, Moorhead, or somewhere nearby, a little foresight can go a long way in avoiding surprise costs and maximizing your savings.

Here are a few proactive steps to keep in mind as you prepare to purchase:

• Ask for a lender escrow estimate before you buy so you know your total monthly cost.
• Review tax refund programs and homestead benefits, especially in MN.
• Check for special assessments in your neighborhood (especially in West Fargo and Horace).
• Watch budget season each fall... that's when rates can jump or stay flat.

The Final Word on Fargo vs. Moorhead

If you're deciding between Fargo and Moorhead, property taxes might not be the most exciting topic, but they will affect your bottom line.

While North Dakota generally offers lower base tax rates, Minnesota's refund programs and exclusions can close the gap or even flip the math in your favor.

Want to know what the tax bill looks like for a specific house? Let me run the numbers for you and walk you through all the factors, so you can make a confident decision that fits your life and your budget.

Whether you're buying your first home or your forever home, I'm here to help you understand the details that matter, like property taxes, so there are no surprises later.

Let's connect! 

Reach out today by email

or by calling (701) 373-5155.