Minnesota Property Tax Refund for Homeowners and Renters

What You Need to Know About the Minnesota Property Tax Refund for Homeowners and Renters

In Minnesota, if you are a homeowner or renter, you may qualify for the property tax refund. As a homeowner, this refund relates to the property taxes you pay on your primary residence located in the state of Minnesota and is comprised of two parts: the Regular Homestead Credit Refund and the Special Property Tax Refund. You may qualify for one or both. The due date to file for the refund is August 15^th.

Renters have a one-part refund in the form of a refundable credit which is based on the amount of rent paid.

HOMEOWNERS:

To qualify for the Homestead Credit Refund, you must be a homeowner and meet 5 requirements:

1. Must either be a full-year or part-year resident of Minnesota.
2. Must have lived in and owned your home on January 2^nd of the following year. For example, to qualify for the refund in 2024, you must have lived in and owned your property on January 2^nd, 2025.
3. Your residence must be considered an approved homestead by filing as such with your county of residence and would be reported on your property tax statement.
4. Your current property taxes are current. No delinquent taxes are allowed to be used in the refund calculation.
5. Your combined household income must be less than $139,320.

If you meet all these requirements, you may qualify for the refund and should complete Minnesota Form M1PR, also known as the Minnesota Property Tax Refund form.

The Special Property Tax Refund has different requirements. For the special property tax refund, you must be a homeowner and meet three requirements:

1. You must have lived in and owned your property on both January 2^nd of the filing year, and January 2^nd of the current year. For example, for filing year 2024, you must have lived in and owned your home on January 2^nd, 2024 and January 2^nd, 2025.
2. Your property taxes must have increased by more than 12% from year to year.
3. The increase needs to be at least $100.

There are no income limitations to the special refund, so you may qualify for this portion even if you do not qualify for the Regular Homestead Credit Refund mentioned earlier.

There is an important item to point out for taxpayers who intend to file, or have filed, their homeowner’s property tax refund for 2024. If you are a homeowner in Chisago, Faribault, or Winona County, you may have been issued a corrected property tax statement that could affect your refund. To see if you are impacted, please check with your county for a corrected statement.

RENTERS:

If you don’t own your residence in Minnesota, but rent it instead, you may qualify for the Renter’s Credit. Starting in tax year 2024, Minnesota allows a refundable credit to be reported on your income tax return using Schedule M1RENT. Prior to 2024, the renter’s rebate was reported on Form M1PR, along with the refunds reported by homeowners.

In order to qualify for the Renters Credit, there are four requirements.

1. Household income must be below $75,390.
2. You must be a full year or part-year resident.
3. The building you occupied must either have had property taxes payable or payments in lieu of property taxes in the filing year.
4. Must not be a dependent of another.

Are you leaving a valuable tax refund on the table? Speak to a member of our team to see if you qualify for the Minnesota Property Tax Refund or Renter’s Rebate.