The property tax figure on a Crosslake listing this week is the payable-2026 bill. The figure that matters to a buyer this winter is on the proposed-tax notices Crow Wing County sends out this month. Under the Minnesota Department of Revenue's Truth in Taxation instructions for payable 2027, counties have to send every parcel's notice by first-class mail after Nov. 10 and no later than Nov. 24, 2026.
For Crosslake owners, these notices reflect a change. In the last budget cycle, the city's tax rate fell even though its levy rose, because the tax base grew faster than the levy. For 2027 the estimated base has nearly stopped growing, so the preliminary levy increase pushes the estimated rate up.
The Rate Fell While the Levy Rose
A city tax rate is the levy divided by the city's total tax capacity. Tax capacity is each property's taxable market value multiplied by its class rate, as the Department of Revenue explains. A city can raise its levy and still lower its rate as long as its property values grow faster than its spending.
Crosslake did exactly that. In December 2024, the Pine and Lakes Echo Journal reported a final payable-2025 levy of $5,227,380, up 2.53%, with an estimated city tax rate of 19.22%. A year later the Echo Journal reported a final payable-2026 levy of $5,238,971, up $11,591 or 0.22%, and an estimated rate of 17.28%.
| Taxes payable | City levy | Change in levy | Estimated city rate |
|---|---|---|---|
| 2025 | $5,227,380 | +2.53% | 19.22% |
| 2026 | $5,238,971 | +0.22% | 17.28% |
| 2027, preliminary | $5,454,809 | +4.12% | about 17.9% |
Dividing the payable-2025 levy by its 19.22% rate gives a tax capacity of about $27.2 million. For payable 2026, the city put tax capacity at $30,344,313. That is roughly 11.6% growth in a single year. The levy barely moved over the same period, so the growth went straight into a lower rate. An owner whose value rose about as fast as the city average saw the city portion of the bill stay level or ease slightly. An owner whose value rose less than average got a bigger break than that.
For 2027, the Base Barely Moved
The Echo Journal reported on Oct. 3 that the Crosslake City Council approved a preliminary 2027 levy of $5,454,809 at a special meeting on Sept. 28. That is 4.12% above the current $5,238,971. City Administrator Lori Conway told the council that the city's estimated taxable tax capacity for 2027 is $30,398,231, up from $30,344,313. By her estimate, the rate goes from 17.27% to about 17.9%.
The base grew by $53,918, or less than two-tenths of one percent. Last year the same comparison came out above 11%. With almost no growth to spread the increase across, nearly all of the 4.12% shows up in the estimated rate. The council also chose a budget option that draws $150,000 from reserves. Budget items discussed included a $65,000 parks truck and plow, a planned Type 3 grass fire rig, and up to $30,000 to make the council dais accessible.
For a buyer, this means the 2026 tax line on a Crosslake listing reflects a year when growth in the tax base was holding the rate down. The 2027 city rate is estimated to be higher, and the final figure depends on the levy the council adopts in December.
The September Number Is a Ceiling
Under Minnesota's process, a preliminary levy can go down before final adoption but cannot go up. That means the proposed-tax notice shows the most the city can levy. It is not a forecast of what the council will adopt. In each of the last two years, Crosslake adopted a lower number in December.
- Payable 2025: The preliminary levy was $5,420,269 in September 2024. The final levy was $192,889 lower.
- Payable 2026: The preliminary levy was $5,385,036 in September 2025. The final levy was $146,065 lower.
- Payable 2027: The preliminary levy is $5,454,809. The final vote is at the Truth in Taxation public hearing, 6 p.m. Monday, Dec. 14.
As an illustration only: if the council cuts the same amount it cut last December, the final levy would be $5,308,744. That is about 1.3% above the current levy. Divided by the city's estimated $30,398,231 tax capacity, it gives a rate of about 17.5%. That would still be above the current 17.28%. A flat tax base leaves less room for the December cut to keep the rate from rising.
The County Layer Is Larger
The city portion is only one part of a Crosslake tax bill. On Sept. 22, the Crow Wing County Board unanimously approved a preliminary 2027 levy of $53,376,748, according to the Brainerd Dispatch. That is $2,536,869, or 4.99%, more than the 2026 levy of $50,839,879. Property taxes are expected to bring in 45.8% of the county's 2027 revenue. Intergovernmental funds, meaning federal funds and state aid, bring in 36.1%.
Commissioner Paul Koering compared the county's increase with the preliminary levies in Baxter, up 12.65%, and Brainerd, up 9.99%. The Dispatch quoted him: "So I think we should be pretty proud of 4.99." Commissioner Steve Barrows warned that changes expected from the federal government and the state are not fully reflected. The Dispatch reported him saying, "This levy here doesn't necessarily account for all of those things that will be coming down the chute at some point."
The county's budget and levy informational meeting is at 6 p.m. Dec. 15, and the board is expected to adopt its final levy on Dec. 29. The city and county votes fall within about two weeks of each other. A buyer who closes in January will find out both final numbers about the time they get the keys.
Where a Cabin's Tax Capacity Comes From
The city rate is applied to each parcel's tax capacity, and a parcel's tax capacity depends on how it is classified. A noncommercial lake cabin used seasonally for recreation is class 4c(12). The Department of Revenue's glossary sets its class rate at 1.00% of taxable market value up to $500,000 and 1.25% on value above that. Those are the same two tiers that apply to a residential homestead.
Seasonal recreational property also pays the state general property tax, with a reduced 0.40% class rate on the first $76,000 of market value. The Department of Revenue's state general property tax page lists the preliminary payable-2027 statewide rate for seasonal residential recreational property at 9.000%.
The values behind those calculations come from the county's 2026 assessment. Crow Wing County said in March that the 2026 valuations apply to taxes payable in 2027 and were based on 2,300 real estate sales from October 2024 through September 2025. When the assessed values of Crosslake's properties add up to a tax base that barely moved, the city's rate does the adjusting. Each parcel's bill then depends on how its own value changed compared with the rest of the city.
This post is general information about how Minnesota property taxes are calculated. It is not tax, legal or financial advice. Confirm the details of your own parcel with the Crow Wing County treasurer or assessor, or with a tax professional.
Quick Answers
When will I see my proposed 2027 tax? Counties must mail the notices after Nov. 10 and no later than Nov. 24, 2026, according to the Department of Revenue.
Can the Crosslake levy still change? It can only go down. The council adopts the final levy at its hearing at 6 p.m. Monday, Dec. 14.
Why would the city rate rise when the levy increase is modest? The estimated tax base grew from $30,344,313 to $30,398,231, so nearly all of the 4.12% levy increase goes into the estimated rate.
If you're weighing an offer on a Crosslake property this winter, or you're getting a family cabin ready to sell in the spring, the Truth in Taxation notice is part of the math. Larson Group can go over the payable-2026 bill and the proposed 2027 notice with you, so carrying costs don't come as a surprise after closing. Work With Us.
