The Minnesota property tax refund returns part of what you paid in property taxes or rent when those costs are large relative to your income. Homeowners with household income under $142,490 can file Form M1PR for a refund of up to $3,480, and renters earning under $77,570 can claim a credit of up to $2,720 on their state income tax return.1Minnesota Department of Revenue. Homeowner’s Homestead Credit Refund2Minnesota Department of Revenue. Renter’s Credit The program is run by the Minnesota Department of Revenue under Chapter 290A.
Homeowners and Renters File Different Forms
People talk about one “property tax refund,” but Minnesota splits it in two, and the forms, deadlines, and refund timing are different.
Homeowners file Form M1PR. It’s a standalone return, separate from your income tax return, and the deadline is August 15.3Minnesota Department of Revenue. Filing for a Property Tax Refund Two refunds can go on this one form: a regular refund tied to your income, and a special refund triggered by a large tax jump.
Renters, starting with tax year 2024, no longer use Form M1PR. The renter’s credit now goes on Schedule M1RENT, filed with your regular Minnesota income tax return (Form M1).2Minnesota Department of Revenue. Renter’s Credit If you need to file or amend a renter’s refund for 2023 or an earlier year, use the old M1PR process for those years.
Homeowner Eligibility and Refund Amount
The Regular Refund
You qualify for the regular refund if you owned and lived in your home on January 2, 2026, and your total household income for 2025 was less than $142,490.1Minnesota Department of Revenue. Homeowner’s Homestead Credit Refund The property has to be classified as your homestead with the county, meaning it’s your primary residence.
The refund scales with income. The state assumes you can pay a certain share of your income toward property taxes; above that, you cover a smaller “copay” percentage of the excess and the state refunds the rest, up to a cap. A household earning under $2,190 can see a refund as high as $3,480, while a household at the top end (roughly $137,160 to $142,489) is capped at $680.4Minnesota Department of Revenue. Homeowner Schedule for Property Tax Refund The dollar brackets are adjusted for inflation each year.5Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.04 – Homestead Credit Refund
The Special Refund (No Income Limit)
The special refund, sometimes called the “targeting refund,” has no income cap. You qualify if all of these are true:1Minnesota Department of Revenue. Homeowner’s Homestead Credit Refund
- You owned and lived in the same home on both January 2, 2025, and January 2, 2026.
- Your net property tax rose by more than 12% from 2025 to 2026.
- The dollar increase was at least $100.
- The increase wasn’t caused by improvements you made.
The refund equals 60% of the increase above the greater of 12% of last year’s tax or $100, up to $1,000.6Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.04 – Homestead Credit Refund – Subdivision 2h You can claim it on the same M1PR as the regular refund, and homeowners hit with a sharp reassessment often qualify for both without realizing it. You’ll need both this year’s and last year’s property tax statements to show the increase.7Minnesota Department of Revenue. 2025 Homestead Credit Refund Forms and Instructions
Renter Eligibility and Credit Amount
You can claim the renter’s credit if your household income is below $77,570 and the building you rent is subject to property taxes (or makes payments in lieu of taxes).2Minnesota Department of Revenue. Renter’s Credit The maximum credit is $2,720.
Household income for the renter’s credit works differently from the homeowner version: start with your adjusted gross income, then subtract amounts for being over 65, having a disability, or claiming dependents. If you’re married filing separately, your household income includes your spouse’s income for the period you were married and living together.2Minnesota Department of Revenue. Renter’s Credit
Because the credit now travels with your income tax return, your refund arrives when your income tax refund does, not in the fall.
How Household Income Is Calculated for Homeowners
Household income on the M1PR is broader than federal AGI. You start with your federal AGI and then add back income that federal rules usually exclude.8Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.03 – Definitions The common add-backs:
- Social Security and SSI benefits (the full amount, not just the taxable portion)
- Workers’ compensation
- Nontaxable interest, including government bond interest
- Cash public assistance
- Nontaxable pensions and disability payments
- Contributions to an IRA, 401(k), or 457 plan above a base amount
Household income also includes what everyone in the household received during the year, except income earned by dependents.8Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.03 – Definitions This catches people off guard. A homeowner whose federal AGI sits well below $142,490 can get pushed over once Social Security, a spouse’s nontaxable pension, or tax-exempt bond interest gets added in. Run the full calculation before assuming you qualify.
Who Cannot Claim a Refund
You’re not eligible if someone else can claim you as a dependent on their federal return. Minnesota uses the federal definition, so if you meet the IRS tests for a qualifying child or qualifying relative, you can’t file your own refund claim.9Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.03 – Definitions – Subdivision 8 You also must have been a Minnesota resident during the year you’re claiming.
Documents You Need
Homeowners
You need your Statement of Property Taxes Payable, which the county mails each year. Minnesota law requires counties to postmark these by March 31.7Minnesota Department of Revenue. 2025 Homestead Credit Refund Forms and Instructions Use the net property tax figure. Don’t include special assessments or delinquent amounts. For the special refund, you’ll also need last year’s statement.
Renters
Your landlord or property manager must give you a Certificate of Rent Paid (CRP) by January 31. The CRP lists your rent and the portion that counts as property tax. If the landlord doesn’t deliver or correct your CRP by February 1, you can request a Rent Paid Affidavit (RPA) from the Department of Revenue, which starts issuing them that same day. If you go that route, send the RPA plus proof of rent paid with your return, even if the landlord later provides a CRP.2Minnesota Department of Revenue. Renter’s Credit
How and When to File
Homeowners
File Form M1PR electronically through tax software, or download the form and mail it. The deadline is August 15, and the state accepts returns up to one year late.3Minnesota Department of Revenue. Filing for a Property Tax Refund Electronic filing is faster and lets you use direct deposit. Paper returns go to the Department of Revenue in St. Paul; make sure the postmark is on or before the deadline.
File by August 15 and expect your refund in late September or early October. File after the deadline and the state generally processes it within about 60 days of receipt.
Renters
Renters file Schedule M1RENT with Form M1, either electronically or on paper, on the standard income tax deadline (typically April 15) rather than August 15. Your refund arrives with your income tax refund, which for e-filers using direct deposit usually takes a few weeks.2Minnesota Department of Revenue. Renter’s Credit Include copies of every CRP; missing them can delay or deny the credit.
Tracking Your Refund
Check the Department of Revenue’s “Where’s My Refund?” tool for your status.10Minnesota Department of Revenue. Where’s My Refund If the department adjusts your return or needs more documents, it will send a letter explaining what to do.
Is the Refund Taxable on Your Federal Return?
It depends on whether you itemized. If you took the standard deduction in the year you paid the property taxes, the refund isn’t taxable federal income. If you itemized and deducted property taxes, the refund may count as an itemized deduction recovery under IRS rules; see IRS Publication 525 under “Recoveries.” The simplest handling in that case is to reduce your current-year property tax deduction by the refund amount rather than report it as income.
Free Help Filing
Minnesota has free preparation help if you need it. Volunteer Income Tax Assistance (VITA) sites prepare both income tax returns and property tax refund returns at no cost. You generally qualify for VITA if you are 60 or older, have a disability, speak limited English, or earn less than $69,000 a year.11Minnesota Department of Revenue. Free Tax Preparation Sites AARP Foundation Tax-Aide sites don’t have income or age restrictions, though services vary by location. Both can handle Form M1PR or Schedule M1RENT.