Good news for many Minnesota homeowners! The 2025 Homestead Credit Refund may be larger this year. The State of Minnesota approved a one-time increase as part of the 2026 Tax Bill, signed into law on May 27, 2026.
What Changed?
The 2025 Homestead Credit Refund increased by nearly 15% for eligible homeowners. If you already filed for your 2025 refund prior to the law change, you generally do not need to amend your return or submit anything extra. The Minnesota Department of Revenue is expected to automatically adjust qualifying refunds to include the increase. The qualifying additional amount is only the regular refund, not the special refund.
Who May Qualify?
You may qualify if you owned and lived in your Minnesota home, the property was classified as a homestead, your property taxes were paid or arranged to be paid, and your household income is within the state’s limits. Eligibility can vary, so it is a good idea to review the state guidance or ask your tax professional if you are unsure.
What Should Homeowners Do?
- If you have already filed using the old form M1PR, there is generally nothing else you need to do. If you qualify, the increase should be applied automatically.
- If you have not filed yet, you may still be able to claim the 2025 Homestead Credit Refund by filing before the state deadline of August 15, 2027. Be sure the form or software you are using is the revised version dated 6/26 and includes new line 17a that calculates the additional 14.88% refund.
If you have questions, please reach out to your tax advisor or review the Minnesota Department of Revenue’s Homestead Credit Refund information here.