New Construction Tax Incentives in Fargo-Moorhead
Building a new home in the Fargo-Moorhead metro comes with a financial perk most buyers don't know about — a multi-year property tax break. Nine cities across North Dakota and Minnesota offer new-construction incentives that can save you thousands of dollars in your first years of homeownership. Use the estimator below to see what you could save, then explore each city's program for details and contacts. Program details current as of August 2026.
How Much Could You Save?
New-construction tax breaks in the Fargo-Moorhead metro typically save about $4,000 over two years in North Dakota (a property-tax exemption on up to $150,000 of improvement value) and $5,500–$7,500+ in Minnesota (a full-value rebate, no cap).
Pick your city and enter an estimated home value to see your potential tax savings.
Two States, Two Programs
North Dakota — Tax Exemption
- How it works: You don't pay property taxes on the exempt portion — it's never on your bill.
- What's exempt: Up to $150,000 of improvement value (land stays taxable).
- Duration: 2 taxable years after construction is complete and you move in.
- Estimated savings: ~$4,000 over 2 years.
- Application: File with the city assessor by February 1.
- Statute: NDCC 57-02-08(35)
Minnesota — Tax Rebate
- How it works: You pay your taxes on schedule, then receive a rebate check in December.
- What's covered: Full home value — building and land, no cap.
- Duration: 2 years from building permit issuance.
- Estimated savings: $5,500–$7,500+ depending on city and home value.
- Application: Automatic in Moorhead (enrolled at building permit). Varies by city.
- Authority: MN Statute 469.1813
Builder Promotions Right Now
8 Fargo-Moorhead builders mention a buyer incentive in the listings of their homes for sale. The most common wording for each, quoted as written:
Thomsen Homes
27 of 33 homes for sale mention a buyer incentive.
“Ask about other current builder incentives/promotions available!” — 4 listings
23 listings mention a special interest rate; ask the listing agent for the APR and terms.
The 27 homes with a buyer incentive
- 854 1st Avenue, Horace — $343,433
- 1193 Rachel Drive W, West Fargo — $344,067
- 7897 Cottonwood Boulevard, Horace — $360,431
- 2312 38 Avenue S, Moorhead — $368,200
- 224 Lionheart Drive, Horace — $377,864
- 7895 Cottonwood Boulevard, Horace — $386,511
- 6782 Meadow View Drive S, Fargo — $395,986
- 412 Lionheart Drive, Horace — $401,865
- 315 Lionheart Drive, Horace — $421,889
- 10242 Concord Drive S, Horace — $436,050
- 2962 74 Avenue S, Fargo — $445,649
- 6317 83 Avenue, Horace — $448,177
- 8529 61st Street S, Horace — $454,175
- 7782 Cub Creek Way S, Horace — $470,021
- 10234 Concord Drive S, Horace — $479,900
- 311 Lionheart Drive, Horace — $498,977
- 6013 80 Avenue S, Horace — $508,839
- 4890 Decorah Way S, Fargo — $514,000
- 6721 14 Street S, Fargo — $514,587
- 6689 14 Street, Fargo — $515,663
- 6627 14 Street S, Fargo — $543,435
- 6851 14 Street S, Fargo — $589,256
- 10219 Concord Drive S, Horace — $610,372
- 1409 66th Avenue S, Fargo — $621,891
- 3612 Decorah Way S, Fargo — $669,999
- 10227 Concord Drive S, Horace — $703,760
- 3606 Decorah Way S, Fargo — $769,999
Dabbert Custom Homes
7 of 23 homes for sale mention a buyer incentive.
“$20,000 promo when you build this model to suit with specified builder.” — 5 listings
The 7 homes with a buyer incentive
- 203 Emma Court, Mapleton — $504,800
- 4736 Hampton Loop S, Moorhead — $543,500
- 233 Emma Court, Mapleton — $584,000
- 8318 61st Street S, Horace — $594,900
- 603 Lorraine Way, Colfax — $644,200
- 605 Lorraine Way, Colfax — $834,900
- 406 Boehm Way, Colfax — $882,700
Jordahl Custom Homes
3 of 47 homes for sale mention a buyer incentive.
“$10k towards Closing Costs or rate buy down Plus $15k Design center upgrades to make it all yours. … 2-YEAR TAX ABATEMENT (buyer to verify with City).” — 1 listing
The 3 homes with a buyer incentive
- 2516 38th Avenue S, Moorhead — $327,200
- 2657 42nd Avenue S, Moorhead — $349,900
- 6827 30th Street S, Fargo — $363,560
Burchill Construction
2 of 2 homes for sale mention a buyer incentive.
“New incentive for Buyers: Seller to offer up to $30,000 for Buyer's rate buy down.” — 2 listings
The 2 homes with a buyer incentive
- 106 Pine Drive, Hankinson — $415,000
- 301 Pine Drive, Hankinson — $415,000
Mnm Construction
2 of 2 homes for sale mention a buyer incentive.
“Beautiful One level 3 bedroom 2 bath twin home in the new Charleswood Addition in Glyndon 2 year tax abatement and credit for utilities from City of Glyndon. … Seller offering $10,000 credit for upgrades or specials.” — 1 listing
The 2 homes with a buyer incentive
- 1509 Parke Avenue S, Glyndon — $284,900
- 1513 Parke Avenue S, Glyndon — $284,900
Heritage Homes
1 of 13 homes for sale mentions a buyer incentive.
“Don't forget about low specials & city-approved tax abatement for the next 2 years!” — 1 listing
The home with a buyer incentive
- 6525 Sun Valley Boulevard, Horace — $612,400
Mission Homes
1 of 6 homes for sale mentions a buyer incentive.
“$10,000 offered in buyer promos by builder!” — 1 listing
The home with a buyer incentive
- 6264 86th Avenue S, Horace — $364,900
Platinum Homes
1 of 5 homes for sale mentions a buyer incentive.
“Also current Builder promotion includes a fully sodded yard and a sprinkler system!” — 1 listing
The home with a buyer incentive
- 8916 Meadowlark Parkway, Horace — $661,400
Quoted as written in the MLS listings. Terms, deadlines and lender requirements change, so confirm with the listing agent before you count on one.
How to spot a good builder incentive (and a fake one)
Explore by City
Each guide covers the specific program, how to apply, estimated savings, and official city contacts.
North Dakota — Tax Exemption
- Fargo, ND ~$4,000 savings · 2-yr exemption
- West Fargo, ND ~$4,000 savings · 2-yr exemption
- Horace, ND ~$4,000 savings · 2-yr exemption
- Casselton, ND ~$4,000 savings · 2-yr exemption
- Colfax, ND ~$4,000 savings · 2-yr exemption
- Mapleton, ND ~$4,000 savings · 2-yr exemption
Minnesota — Tax Rebate
- Moorhead, MN No cap · 2-yr rebate
- Dilworth, MN No cap · 2-yr rebate
- Barnesville, MN No cap · 2-yr rebate
Considering a Remodel?
Some communities also offer incentives for home improvements. In North Dakota, buildings at least 25 years old may qualify for a renovation tax exemption on the added value — for up to five years (NDCC 57-02.2). In Moorhead, home improvements of $25,000 or more can qualify for a separate two-year property tax rebate.
Reach out to your local city assessor or economic development office before starting your project to find out what's available in your area.
Tax Incentive Questions, Answered
Which Fargo-Moorhead cities offer tax incentives for new construction?
Nine cities in the FM metro currently offer new-construction tax incentives: Fargo, West Fargo, Horace, Casselton, Colfax, and Mapleton in North Dakota, and Moorhead, Dilworth, and Barnesville in Minnesota. Each city's program has its own details — click through to the city pages for specifics.
What's the difference between ND's tax exemption and MN's tax rebate?
In North Dakota, new-home buyers receive an exemption — you simply don't pay property taxes on the first $150,000 of improvement value for two years (land stays taxable). In Minnesota, buyers pay their full tax bill on schedule and then receive a rebate check in December covering the general taxes paid. Minnesota's program has no value cap and includes both building and land, making it more generous on higher-value homes.
How much can I save by building a new home in the FM area?
In North Dakota cities, the estimated savings are approximately $4,000 over two years on the maximum $150,000 of improvement value. In Minnesota, savings vary by city and home value — Moorhead estimates more than $7,500 on a $300,000 home, while Dilworth estimates approximately $5,500 on a $250,000 home. Use the estimator on this page for a quick estimate based on your city and price point.
Does North Dakota's $1,600 Primary Residence Credit replace these new-construction incentives?
No — they stack. The statewide Primary Residence Credit, expanded to up to $1,600 per year by North Dakota's 2025 property-tax reform, applies to any ND primary residence and is claimed separately — apply online at tax.nd.gov between January 1 and April 1 each year. The local new-construction exemption removes up to $150,000 of improvement value from your taxable base for two years. A new-home buyer in Fargo, West Fargo, or Horace can use both at once.
Do I have to apply, or is the tax break automatic?
It depends on the state. In North Dakota, you need to file an application with the city assessor — typically by February 1 of the first exemption year. In Moorhead, enrollment is automatic when your building permit is issued. Check your city's page for the specific process.
Are there tax incentives for home remodeling?
In North Dakota, there's a separate program under NDCC 57-02.2 that exempts the added value of renovations to buildings at least 25 years old — for up to five years. In Moorhead, a two-year rebate is available on home improvements of $25,000 or more. Contact your city for current details.
Can I combine the tax incentive with down-payment assistance or builder warranties?
Yes. The property tax programs are independent of mortgage and financing programs. Many new-home buyers also use programs like NDHFA FirstHome (ND) or Minnesota Housing Start Up (MN) for down-payment help. Builder warranties are between you and your builder and aren't affected by the tax incentive.
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