Minnesota property tax refunds go to homeowners and renters who paid more than they owed, or who meet income thresholds for state relief programs

Minnesota has two separate refund paths. The first is straightforward: if you overpaid your property taxes during the year, you get that money back when you file your state return. The second is a relief program for lower-income households—the Homestead Property Tax Refund—which pays you back a portion of taxes you owed, not just overpayments. Which one applies to you depends on your income, whether you own or rent, and how much you paid in taxes.

The state does not automatically send refunds. You must file a Minnesota tax return to claim either one. If you do not normally file because your income is below the threshold, you still need to file to get a refund.

Key Takeaways

  • Homeowners and renters with household income under roughly $90,000 may receive a refund through the Homestead Property Tax Refund program, which is based on what you paid in property taxes or rent, not just overpayments.
  • You must file a Minnesota tax return to claim any refund, even if you do not normally file because your income is too low.
  • The Homestead refund is calculated on your state return using Schedule M; the form itself walks you through the income and property tax thresholds.
  • Renters can claim a refund based on rent paid (the state assumes 20 percent of rent goes to property taxes), but only if they meet the income limit.
  • Overpayments of property taxes are refunded automatically when you file your return; you do not need to take a separate step.

The Homestead Property Tax Refund for lower-income households

The Homestead Property Tax Refund is Minnesota's main relief program. It refunds a portion of property taxes you actually paid during the year, scaled to your household income. The income limit is roughly $90,000 for a household of four, but it varies by family size and is adjusted each year. You can find the exact limit for your household size on the Minnesota Department of Revenue website.

To claim this refund, you file Schedule M with your state tax return. The form asks for your household income, the amount of property tax you paid (or rent, if you are a renter), and your home's market value. The state then calculates how much to refund based on a formula that weighs all three. If your income is above the threshold, you do not receive a refund under this program, even if you paid substantial property taxes.

The refund amount is not fixed. A household at the income limit might receive $50 to $300 back, depending on how much tax they paid and the value of their home. Households with lower incomes and higher tax burdens receive larger refunds. The state processes these refunds when it processes your return, typically within a few weeks of filing.

Renters and the rent-to-tax conversion

Renters can claim the Homestead Property Tax Refund if they meet the income threshold. The state does not ask you to prove how much of your rent goes to property taxes. Instead, it uses a standard assumption: 20 percent of the rent you paid counts as property tax for refund purposes. This is a fixed percentage set by law, not an estimate based on your actual lease.

You report your annual rent paid on Schedule M. If you paid $12,000 in rent during the year, the state counts $2,400 as property tax. You then proceed through the same refund calculation as a homeowner. This means renters with lower incomes and higher rent burdens can receive refunds even though they do not directly pay property taxes.

Overpayments during the tax year

If you paid more in property taxes during 2024 than you actually owed—because your assessment changed, you made an error, or you paid based on an old bill—you can claim that overpayment as a refund when you file your return. This is separate from the Homestead refund and applies to any household, regardless of income.

To claim an overpayment, you need documentation from your county assessor or tax collector showing what you paid and what you owed. File your return with this documentation attached or available if the state asks for it. The refund is processed as part of your normal return.

Income limits and household size

The Homestead Property Tax Refund has an income ceiling. In recent years, the limit for a single person was around $48,000, and for a family of four around $90,000. These limits are adjusted annually for inflation, so the exact number changes each year. You can find the current limits on the Minnesota Department of Revenue website or in the instructions for Schedule M.

Household income includes wages, self-employment income, Social Security, pensions, interest, dividends, and most other sources. It does not include certain items like workers' compensation or some disability payments. If you are unsure whether a specific income source counts, check the Schedule M instructions or contact the Department of Revenue.

If your household income exceeds the limit by even $1, you do not receive a refund under the Homestead program. There is no phase-out; the cutoff is absolute.

How to file for a property tax refund

File a Minnesota Form 1M (the state income tax return) or Form 1MNR (if you are a nonresident). Include Schedule M if you are claiming the Homestead Property Tax Refund. You can file on paper or electronically through the state's website or a tax software provider.

If you do not normally file a return because your income is below the filing threshold, you still need to file to claim a property tax refund. The state does not send refunds without a return on file. You can file for free using the state's Free File program if your income is below a certain level, or through a community tax preparation site.

File by the state important date, which is typically April 15. If you file after that date, your refund may be delayed, but you can still claim it in the same tax year. The state does not impose a separate important date for property tax refunds.

What documents you need

Gather your property tax bill or assessment notice showing the amount you paid during the year. If you are a renter, collect your lease and rent receipts or cancelled checks showing what you paid. If you are claiming an overpayment, get documentation from your county showing the discrepancy.

You do not need to send these documents with your return unless the state asks for them. However, keep them in case the state requests verification. The Department of Revenue can contact your county assessor to confirm the amount you paid, so having your own copy is mainly for your records and to speed up any verification process.

Frequently Asked Questions

Can I get a refund if I own my home outright with no mortgage?

Yes. You still pay property taxes to your county, and those taxes count toward the Homestead refund if your income is below the limit. The fact that you do not have a mortgage does not change your may be able to access.

What if I moved during the year or bought a home partway through?

Report the property taxes you paid at each address on Schedule M. If you owned two homes in the same year, you can only claim the refund for your homestead (primary residence). If you moved from renting to owning, report both the rent paid and the property taxes paid, and the state will calculate based on the homestead rules for the address where you lived on December 31.

Do I have to file a return if I only want to claim a property tax refund?

Yes. The refund is claimed on your tax return, so you must file one. Even if you have no income or income below the filing threshold, you file to claim the refund. The state does not process refunds outside the return system.

How long does it take to receive a property tax refund?

If you file electronically, the state typically processes your return within two to three weeks. If you file on paper, allow four to six weeks. The refund is then sent by check or direct deposit, depending on how you filed. If the state needs to verify information with your county, the process may take longer.

Can I claim a refund for property taxes paid in a previous year?

No. The Homestead refund is based on taxes paid during the tax year you are filing for. You can only claim refunds for the year in which you paid the taxes. If you missed a year, you can file an amended return for that year, but you have a limited window to do so (typically three years from the original filing important date).