Property Tax Refund
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Homeowner's Property Tax Refunds

Homeowner's Property Tax Refunds

Regular Homestead Credit Refund 

If your adjusted gross income is less than approximately $110,650, you may qualify for the Homestead Credit 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 $853 for property tax year 2016
  • 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.

Special Homestead Credit Refund 

  • ​You owned and lived in the same home on January 2, 2017, and on January 2, 2018.
  • Your homestead’s net property tax increased by more than 12 percent from 2017 to 2018.
  • The net property tax increase was at least $100.
  • The increase was not due to improvements you made to the property.

Note: There is no income limit for the special refund. You may qualify for the special refund even if you do not qualify for the regular refund.

Senior Citizen Property Tax Deferral

  • Allows people age 65 and older with household income of $60,000 or less to defer a portion of property taxes on their home
  • Limits maximum amount of property tax paid to 3% of household income
  • Additional taxes are deferred, not forgiven
  • Provides predictability; amount of tax you pay will not change for as long as you participate in the program
  • Deferred property taxes plus accrued interest must be paid when home is sold or homeowner(s) dies