The income limit for Minnesota's property tax refund depends on your household size and filing status
Minnesota's Property Tax Refund (also called the Homestead Property Tax Refund) has an income ceiling that changes each year. For the 2023 tax year, the limit was $89,340 for a married couple filing jointly, $71,470 for a head of household, and $44,670 for a single filer. These thresholds rise slightly most years to account for inflation, so the 2024 limits will be higher.
The refund is designed for homeowners and renters whose property taxes or rent are high relative to their income. If your household income exceeds the limit for your filing status, you cannot receive the refund, regardless of how much you paid in property tax or rent.
Income for this purpose 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, but those exceptions are narrow.
Key Takeaways
- Income limits vary by filing status (single, head of household, married filing jointly) and increase each year with inflation.
- You must check the current year's limit on the Minnesota Department of Revenue website before filing, since thresholds change annually.
- Income includes wages, self-employment, Social Security, pensions, and investment income, but excludes certain disability and workers' compensation payments.
- If you exceed the income limit, you are not may have access to to the refund even if you paid substantial property tax or rent.
- The refund is claimed on your Minnesota state tax return using Form M1PR or M1PR-V, depending on whether you are a homeowner or renter.
How Minnesota calculates the income limit each year
The Minnesota Department of Revenue sets new income limits annually, usually in late fall for the following tax year. The limits are indexed to inflation, meaning they rise by a percentage tied to the Consumer Price Index. This adjustment happens automatically; you do not need to track it yourself.
To find the current year's limit, visit the Minnesota Department of Revenue website and search for "Property Tax Refund" or "Homestead Property Tax Refund." The department publishes a fact sheet each year that lists the exact thresholds for all filing statuses. You can also call the department's individual income tax line at 651-296-3781 to confirm the limit for your situation.
The limit applies to your federal adjusted gross income (AGI) as reported on your federal tax return. If you file a federal return, your AGI is the starting point; if you do not file federally, Minnesota calculates it based on your income sources.
What counts as income for the property tax refund test
Minnesota includes nearly all income sources when determining whether you exceed the limit. This means wages, tips, self-employment income, rental income, capital gains, interest, dividends, Social Security benefits, pensions, annuities, and distributions from retirement accounts all count toward the threshold.
A few categories are excluded: workers' compensation, certain disability payments (like those from the Veterans Administration for service-connected disabilities), and some other narrowly defined items. However, most people's income sources are counted. If you receive Social Security, for example, the full amount counts, not just the taxable portion.
If you are married filing jointly, both spouses' income is combined. If you file as head of household, only your income counts. This can matter significantly if one spouse has much higher income than the other.
Income limits by filing status
| Filing Status | 2023 Limit | Notes |
|---|---|---|
| Married filing jointly | $89,340 | Both spouses' income combined |
| Head of household | $71,470 | Single parent or may have access to dependent |
| Single | $44,670 | Unmarried filer |
These 2023 figures are examples only. The 2024 limits will be higher. Before you file, confirm the current year's thresholds on the Minnesota Department of Revenue website or by calling 651-296-3781. Using outdated limits could lead you to file incorrectly or miss out on a refund you are may have access to to.
What happens if your income is close to the limit
If your income is within a few hundred dollars of the threshold, review your income carefully. Some income sources are easy to miss—for example, if you received a distribution from a retirement account or sold an investment, that counts. If you are self-employed, your net self-employment income (after business expenses) is what counts, not your gross revenue.
If you are right at the edge, consider whether any income you reported can be reduced. For instance, if you made a large charitable contribution, that may reduce your AGI. If you contributed to a traditional IRA, that reduces AGI as well. These adjustments are separate from the property tax refund itself, but they can lower your income enough to bring you under the limit.
Do not underreport income to may have access to for the refund. The Minnesota Department of Revenue cross-checks refund claims against federal tax returns and other records. If your income is overstated on your return, you will be asked to repay the refund plus interest and penalties.
How to claim the property tax refund if you are under the income limit
To claim the refund, you file it with your Minnesota state tax return. Homeowners use Form M1PR (Minnesota Homestead Property Tax Refund). Renters use Form M1PR-V (Minnesota Renter Property Tax Refund). Both forms ask for your income, your property tax paid (or rent paid), and your household size.
You can file on paper or electronically through Minnesota's tax software or through a tax preparer. If you file electronically, the form is usually included automatically if you meet the basic requirements. If you file on paper, you must include the form with your return.
The refund is not paid out separately; it is applied as a credit against your Minnesota tax liability. If the credit exceeds what you owe in state tax, the difference is refunded to you. Processing times vary, but most refunds are issued within a few weeks of filing if there are no issues with your return.
What to do if you are over the income limit
If your income exceeds the threshold for your filing status, you cannot receive the property tax refund, even if you paid substantial property tax or rent. There is no partial refund or exception based on hardship. The income limit is a hard cutoff.
If you are close to the limit and expect your income to drop in future years, you may become may have access to to the refund in those years. Keep track of your income and check the limits each tax season. If you had a one-time income event (like a large bonus or investment sale) that pushed you over the limit, you may be under it the following year.
If you believe your income was miscalculated or you have questions about what counts, contact the Minnesota Department of Revenue before filing. It is better to clarify now than to file incorrectly and face a correction notice later.
Frequently Asked Questions
Does Social Security count toward the income limit?
Yes, the full amount of Social Security benefits counts as income for the property tax refund test, even if only part of it is taxable on your federal return. If you receive $20,000 in Social Security, all $20,000 is included when determining whether you exceed the limit.
If I am married but file separately, which income limit applies?
If you file separately, each spouse uses the single filer limit, not the married filing jointly limit. This can be advantageous if one spouse has much higher income than the other, but filing separately has other tax consequences you should discuss with a tax preparer.
Can I reduce my income by making a charitable donation to get under the limit?
A charitable donation reduces your AGI only if you itemize deductions on your federal return. If you take the standard deduction, the donation does not lower your AGI. Consult a tax preparer to see whether itemizing would help you in your situation.
What if I earned more income late in the year and now exceed the limit?
If your 2024 income will exceed the limit, you will not be may have access to to the property tax refund for that year. However, if your income drops in 2025, you may be may have access to to the refund for that year. Income limits apply year by year.
Where do I find the current year's income limit?
Visit the Minnesota Department of Revenue website and search for "Property Tax Refund" or "Homestead Property Tax Refund." The department publishes updated limits each fall. You can also call 651-296-3781 to confirm the current threshold for your filing status.