Minnesota's property tax refund is for homeowners and renters whose property taxes or rent are high compared to their household income

Minnesota offers a property tax refund through the state Department of Revenue. The program is designed for people whose property taxes (if you own) or rent (if you rent) take up a large share of what they earn. You do not have to be a first-time homeowner or meet any special condition beyond income and residency — the program looks at one thing: whether your housing costs are too high relative to your income.

The refund is not automatic. You claim it on your Minnesota tax return, either on paper or through tax software. The amount varies based on your household income, the property taxes or rent you paid, and how many people depend on your income. Some people get a few hundred dollars; others get more. The state processes these claims once a year, after tax filing season ends.

Key Takeaways

  • You must have lived in Minnesota for the full year and owned or rented your home for at least 12 months to claim the refund.
  • Your household income must fall below a threshold that changes each year — the state publishes the current limit when tax season opens.
  • Homeowners claim the refund based on property taxes paid; renters claim it based on rent paid, using a formula the state provides.
  • You claim the refund on your Minnesota tax return using Form M1PR or through tax software that supports Minnesota returns.
  • The refund is processed after you file, so you will not receive money until several weeks after the state receives your return.

Income limits and household size

The state sets an income limit each year. If your household income is above that limit, you cannot claim the refund, no matter how high your property taxes are. The limit depends on your household size — a single person has a lower limit than a family of four. The Department of Revenue publishes the current year's limits on its website when tax season opens, usually in January.

Household income includes wages, self-employment income, Social Security, pensions, unemployment benefits, and other sources. It does not include certain items like some disability payments or some types of information, but you should check the form instructions for your specific situation. If you are married and file jointly, both spouses' income counts toward the household total.

Residency and property ownership requirements

You must have lived in Minnesota for the entire calendar year you are claiming the refund for. If you moved to Minnesota partway through the year, you cannot claim the refund for that year, but you can claim it for the next full year you live here. You also must have owned or rented your home for at least 12 months during that same year.

The property must be your primary residence — the place where you actually live. If you own a second home, vacation property, or rental property that you do not live in, you cannot claim the refund for those properties. If you moved during the year but lived in Minnesota the whole time, you can claim the refund for whichever property was your primary residence for at least 12 months of that year.

How homeowners calculate their refund

If you own your home, the refund is based on the property taxes you paid during the year. This includes taxes on the land and building, but not special assessments, utility taxes, or other fees. You will find the amount on your property tax statement or your mortgage statement if your lender pays taxes from an escrow account.

The state uses a formula that compares your property taxes to your household income. The higher your income relative to your taxes, the smaller your refund. If your income is very high, you get no refund even if your property taxes are substantial. The form instructions include a worksheet to calculate your refund, or tax software will do this automatically.

How renters calculate their refund

If you rent, you cannot claim property taxes directly — you did not pay them. Instead, the state uses a formula that assumes a portion of your rent goes toward property taxes. The formula is set by the state and does not change based on what your actual landlord pays. You use the total rent you paid during the year, and the formula converts it to an estimated property tax amount.

You will need to know how much rent you paid in the year you are claiming. If you paid rent for only part of the year, you can still claim the refund, but the amount will be smaller. The form instructions include the formula, or tax software will calculate it for you.

What documents you need to file

You do not need to send documents with your tax return, but you should keep them in case the state asks questions later. Homeowners should keep their property tax statement or mortgage statement showing taxes paid. Renters should keep rent receipts or a letter from their landlord showing the amount of rent paid during the year.

If you file your taxes through a tax preparer or software, you will enter the property tax or rent amount on the form. The software or preparer will calculate your refund and include it on your return. If you file on paper, you will use Form M1PR and include the worksheet showing your calculation.

When you receive your refund

The refund is not paid when ready. After you file your tax return, the state processes it along with all other returns. Property tax refunds are typically processed in the weeks after the tax filing important date, which is usually mid-April. If you file early, you may wait longer for your refund to be processed than if you file closer to the important date.

If you are owed a refund, it will be included with any other Minnesota income tax refund you are due. If you owe Minnesota income tax, the property tax refund may be applied to what you owe before any remaining balance is sent to you. You can check the status of your return through the Department of Revenue's website.

Frequently Asked Questions

Can I claim the property tax refund if I own my home with a mortgage?

Yes. You claim the refund based on the property taxes you paid, whether you own the home outright or have a mortgage. If your lender pays your property taxes from an escrow account, those taxes still count as taxes you paid.

What if I moved to a different home during the year?

You can claim the refund if you lived in Minnesota for the full year and owned or rented a primary residence for at least 12 months during that year. If you owned one home for part of the year and rented another for the rest, you claim based on whichever property was your primary residence for the longer period.

Do I have to file a full Minnesota tax return to claim the property tax refund?

You must file a Minnesota tax return to claim the refund, even if you have no Minnesota income tax owed. Some people file only to claim the property tax refund. You can file on paper or through tax software.

What if my household income is right at the limit?

If your income is at or below the limit the state publishes for your household size, you can claim the refund. The exact refund amount depends on your income and property taxes or rent, calculated using the state's formula.

Can I claim the refund for a property I own but do not live in?

No. The refund is only for your primary residence — the home where you actually live. Rental properties, vacation homes, or other properties you own do not may have access to.