Homestead Credit Refund
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Homestead Credit Refund

Homestead Credit Refund

If your adjusted gross income is less than approximately $110,650, you may qualify for the Homestead Credit Refund (also known as the “Circuit Breaker” refund). This program, which has existed since the 1970s, is intended to reduce tax burdens for homeowners with relatively low incomes and relatively high property tax burdens. Some important facts about this program are summarized below.

  • Available to all owners of residential homestead with incomes of less than $110,650
  • Refund is on a sliding scale, based on your income and your total property tax burden
  • The maximum refund is $2,710
  • Average refund was $847 for property tax year 2015
  • To determine eligibility and refund amounts, complete Minnesota tax form M1PR (available online at www.revenue.state.mn.us).

If you qualify for this program, you may receive an additional refund of up to 80% of the amount of the property tax increase caused by the proposed referendum. For example, if the referendum increases your property taxes by $100 per year, your refund may cover up to $80 of this increase.