Minnesota property tax refunds go to homeowners and renters who paid more than they owed, based on income limits and property value
Minnesota has two separate refund programs. Homeowners may receive a homestead property tax refund if their property taxes were high relative to their household income. Renters may receive a renter property tax refund if they paid rent and their household income fell below a threshold. Both programs are administered by the Minnesota Department of Revenue, and both have income and property value limits that change each year.
The refund is not automatic. You must file a claim form with your state income tax return or submit it separately to the Department of Revenue. The amount you receive depends on your household income, the taxes or rent you actually paid, and the assessed value of the property. If you do not meet the income or property value limits, you will not receive a refund, even if you file.
Key Takeaways
- Homeowners can receive a refund if their property taxes exceeded a percentage of their household income and their home value is below the state limit.
- Renters can receive a refund based on rent paid if their household income is below the annual threshold set by Minnesota.
- You must file a claim form — either with your state income tax return or separately — to receive any refund.
- Income limits and property value limits change each year, so you must check the current year's rules before filing.
- The Department of Revenue processes claims filed with your tax return faster than separate filings.
Homeowner property tax refund requirements
To receive a homestead property tax refund in Minnesota, you must own and occupy the home as your primary residence on December 31 of the year you are claiming. The home's market value cannot exceed the state limit, which varies by year. For 2023 returns, the limit was $413,000; for 2024 returns, it increased to $430,000. Check the Department of Revenue website for the current year's limit before you file.
Your household income must be below a threshold that also changes annually. For 2023, the income limit was $89,340 for most filers; for 2024, it rose to $92,850. More importantly, your property taxes must have exceeded a certain percentage of your household income. That percentage is set by the state each year. If your income is high enough that your taxes fall below that threshold, you will not receive a refund even if you meet the other requirements.
You must have paid property taxes on the home during the year you are claiming. If your mortgage lender paid the taxes from an escrow account, those taxes count as taxes you paid. If you received a property tax deferral or postponement from the state, you cannot claim a refund for the deferred amount.
Renter property tax refund requirements
Renters in Minnesota can receive a refund based on rent paid if their household income falls below the annual threshold. For 2023, the income limit was $39,110 for most filers; for 2024, it rose to $40,520. The Department of Revenue assumes that 20 percent of your rent goes toward property taxes, so you do not need to prove the actual tax portion — the state calculates it for you.
You must have paid rent on a home or apartment in Minnesota during the year you are claiming. The property must have been your primary residence. If you lived in the same rental for part of the year, you can claim a refund for the months you actually rented. Rent paid to a family member does not count.
Unlike homeowners, renters have no property value limit. The only requirement is that your household income stayed below the threshold and you paid rent during the year.
How to file a property tax refund claim
The fastest way to file is to include the claim on your Minnesota state income tax return. If you file a joint return with a spouse, both spouses must sign the claim. The form is part of the standard tax return package, and the Department of Revenue processes it along with your return.
If you do not file a state income tax return, you can submit a separate claim form to the Department of Revenue. Download the form from the department's website or request it by mail. Mail the completed form to the address listed on the form. Processing a separate claim takes longer than processing one filed with your tax return — typically several months instead of weeks.
You will need your Social Security number, household income for the year, the amount of property taxes you paid (for homeowners) or rent you paid (for renters), and the market value of your home (for homeowners). Gather these documents before you start: your property tax statement, lease or rental receipts, and your household income records.
Timeline for receiving your refund
If you file the claim with your state income tax return, the Department of Revenue typically processes it within four to six weeks of processing your return. If you file a separate claim form, processing takes two to four months, depending on the volume of claims received. The department does not issue refunds on a specific schedule — they process claims in the order received.
The refund is issued by check mailed to your address on file. If you filed electronically and chose direct deposit for your income tax refund, your property tax refund will still be mailed as a check. There is no option to receive the property tax refund by direct deposit.
If you have not received your refund within the expected timeframe, you can check the status on the Department of Revenue website using your Social Security number and date of birth. The status tool updates weekly and will show whether your claim is pending, approved, or denied.
What happens if your claim is denied
The Department of Revenue will send you a letter explaining why your claim was denied. Common reasons include income above the limit, property value above the limit, or failure to meet the tax-to-income ratio for homeowners. If you believe the denial is incorrect, you can file an appeal within 30 days of receiving the denial letter.
To appeal, submit a written request to the Department of Revenue explaining why you believe the decision was wrong. Include copies of any documents that support your position — pay stubs, property tax statements, or lease agreements. Mail the appeal to the address listed on the denial letter. The department will review your appeal and send you a decision within 60 days.
If you disagree with the appeal decision, you can request a hearing before the Minnesota Tax Court. This process is more formal and may require legal representation. Contact the Tax Court directly for information about filing a petition.
Income and property value limits for current and recent years
| Year | Homeowner Income Limit | Homeowner Property Value Limit | Renter Income Limit |
|---|---|---|---|
| 2024 | $92,850 | $430,000 | $40,520 |
| 2023 | $89,340 | $413,000 | $39,110 |
| 2022 | $86,400 | $398,000 | $37,750 |
These limits increase each year based on inflation. The Department of Revenue announces the new limits in late fall for the following tax year. If your income or property value is close to the limit, check the department's website in November to confirm whether you will be within range for the year you are claiming.
Frequently Asked Questions
Can I claim a property tax refund if I own a second home or rental property?
No. The refund is only for your primary residence — the home where you lived on December 31 of the year you are claiming. If you own rental property or a vacation home, you cannot claim a refund on those properties, even if you paid property taxes on them.
What if my household income changed during the year?
Use your total household income for the entire year, not just the months you owned or rented the home. If you were unemployed part of the year, include only the income you actually earned. If you are unsure how to calculate household income, the Department of Revenue website has a worksheet that walks you through it.
Can I file a claim for a year I already filed?
Yes, but only if you did not file a claim for that year before. If you already filed and received a refund, you cannot file again for the same year. If you filed and were denied, you can appeal within 30 days of the denial letter, but you cannot submit a new claim.
Do I need to report the refund as income on my federal tax return?
No. Property tax refunds from Minnesota are not considered taxable income for federal purposes. You do not need to report the refund on your federal return.
What if I moved out of Minnesota during the year?
You can still claim a refund for the months you lived in Minnesota and paid property taxes or rent. Calculate your household income for the entire year, including income earned after you moved. The Department of Revenue will prorate your refund based on the number of months you were a Minnesota resident.