The Minnesota property tax refund puts money back in the hands of homeowners and renters whose housing costs take too big a bite out of their income. Homeowners with household income under $142,490 can claim the regular homestead credit refund, worth up to $3,310 depending on income and tax bill. A separate “targeting” refund helps any homeowner whose property tax jumped sharply year over year, with no income limit. Renters have their own credit, but as of tax year 2024 it’s filed with your state income tax return rather than on the old standalone form.
Homestead Credit Refund for Homeowners
This is the main refund for homeowners. It measures your property tax bill against your household income and returns the portion the state considers excessive. The lower your income relative to your taxes, the bigger the refund.
You qualify if all of these are true:
- You were a Minnesota resident for all or part of the year.
- You owned and lived in the home as your primary residence, and it was classified as a homestead on January 2 of the year taxes are payable.
- No one claims you as a dependent on their federal return.
- Your total household income was less than $142,490.1Minnesota Department of Revenue. 2025 Property Tax Refund Return (M1PR) Instructions
The refund is calculated on a sliding scale. At the lowest income levels, you’re expected to contribute about 1% of income toward property taxes and the state covers 88% of the excess, up to a $3,310 maximum. As income rises, your expected share of the tax bill grows and the refund cap shrinks, dropping to $650 at the top of the qualifying range.2Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.04 – Property Tax Refund
You claim the refund by filing Form M1PR with the Minnesota Department of Revenue. It’s a separate form from your state income tax return, with its own deadline.
Special Refund for a Sharp Tax Increase
The “targeting” refund is a second track for homeowners whose property tax bill spiked. There is no income limit, and the maximum is $1,000.1Minnesota Department of Revenue. 2025 Property Tax Refund Return (M1PR) Instructions
You qualify if:
- You owned and lived in the home on January 2 of both the current and prior year.
- Your property tax rose by more than 12% over the prior year.
- The dollar increase was at least $100.3Minnesota Department of Revenue. Minnesota Property Tax Refund Newsletter
One catch: if part of the increase came from improvements you made, like a new deck, a finished basement, or a garage, that portion is excluded. The special refund is designed for market-driven increases outside your control, not for the tax effects of voluntary upgrades.
You claim it on the same Form M1PR as the regular homestead credit. If you qualify for both, you get both.
The Renter’s Credit
If you rent, you can claim a credit based on the share of your rent that goes toward your landlord’s property taxes. The state treats 17% of your annual rent as your embedded property tax payment and uses that figure in a calculation similar to the homeowner formula: the credit grows as the gap between your income and your share of property taxes widens.
The important change: starting with tax year 2024, the renter’s credit is no longer filed on Form M1PR. You claim it on Schedule M1RENT as part of your regular Minnesota income tax return.1Minnesota Department of Revenue. 2025 Property Tax Refund Return (M1PR) Instructions That shifts your deadline to your income tax due date (typically April 15) instead of the August M1PR deadline.
To file, you still need a Certificate of Rent Paid (CRP) from your landlord. Landlords must provide it by January 31.4Minnesota Department of Revenue. Create a Certificate of Rent Paid (CRP) If yours doesn’t arrive, contact the Department of Revenue. You can still file using your own rent records while the department follows up.
What Counts as Household Income
Minnesota’s definition of household income is broader than federal adjusted gross income, and this is where filers most often trip. The refund is based on essentially all money coming into the household, including sources that aren’t federally taxable.
Household income is your federal adjusted gross income plus, to the extent not already included:
- Social Security and railroad retirement benefits (the full amount, not just the taxable portion)
- Cash public assistance and relief payments
- Workers’ compensation
- Veterans’ benefits
- Nontaxable pensions and annuities
- Tax-exempt interest from government bonds
- Disability and sick pay
- Nontaxable strike benefits
- Retirement contributions (IRA, 401(k), 457) above a base amount
- Distributions from retirement accounts not already in federal AGI
- Nontaxable scholarships and fellowships5Minnesota Office of the Revisor of Statutes. Minnesota Statutes 290A.03 – Definitions
Income of everyone in the household gets combined, with one exception: dependents’ income isn’t counted. So if your adult child lives with you and isn’t your dependent, their income counts. Undercounting here can shrink your refund or lead to a clawback later.
Documents to Gather
Homeowners need the Statement of Property Taxes Payable from the county. The figure that matters is the “line 1” net property tax for the year. For the 2025 M1PR, you use the property taxes payable in 2026.6Minnesota Department of Revenue. 2025 Form M1PR – Homestead Credit Refund If you’re claiming the special refund too, you’ll need the prior year’s statement to show the increase.
Renters need the CRP from the landlord. It reports total rent paid during the year and is what the department uses to verify your claim. Check that your name, address, and Social Security number match your records; mismatches slow processing.
Everyone should have their federal return on hand along with records of nontaxable income. The ones most often forgotten are Social Security statements (SSA-1099), pension statements, and workers’ compensation records.
How and When to File
Homeowners: Form M1PR
File electronically through the Department of Revenue’s e-Services portal or mail a paper form. Electronic filing gives an instant confirmation and faster processing. Paper returns go to: Minnesota Property Tax Refund, Mail Station 0020, 600 Robert St. N., St. Paul, MN 55146-0020.6Minnesota Department of Revenue. 2025 Form M1PR – Homestead Credit Refund
For the 2025 tax year, Form M1PR must be filed, postmarked, or dropped off by August 17, 2026. Late claims are accepted through August 16, 2027, but the refund will be delayed. After that second deadline, the refund is forfeited.1Minnesota Department of Revenue. 2025 Property Tax Refund Return (M1PR) Instructions
Renters: Schedule M1RENT
Because the renter’s credit rides with your state income tax return, the deadline is April 15 (or the date your Minnesota return is due, including extensions). Complete Schedule M1RENT using your CRP and attach it to Form M1. If you don’t otherwise need to file a Minnesota income tax return, you still need to file one to get the credit.
When to Expect Your Refund
Homeowners who file M1PR by the August deadline typically see refunds by the end of September. Electronic filing with direct deposit shaves weeks off the wait compared with paper.
Renters get the credit as part of the state income tax refund, so timing tracks your Minnesota return. File electronically in February or March and you’ll likely see it within a few weeks.
The Department of Revenue’s “Where’s My Refund?” tool lets you check status with your Social Security number and expected amount. If the return is flagged, or if your CRP doesn’t match what the landlord reported, the tool will show the hold.
Free Filing Help
Free preparation is available through the Volunteer Income Tax Assistance (VITA) program and AARP Tax-Aide. VITA generally serves filers who are 60 or older, have a disability, speak limited English, or earn less than $69,000 a year. AARP Tax-Aide has no income or age restrictions, though availability varies by site.7Minnesota Department of Revenue. Free Tax Preparation Sites
Bring photo ID, your Social Security card, your property tax statement or CRP, and records of all income including nontaxable sources. Sites fill fast in peak season, so call ahead or check the department’s site for hours.
Claiming a Refund When the Filer Has Died
If someone died before claiming the refund, or filed but died before it arrived, a surviving spouse or dependent can claim it using Form M23, Claim for a Refund for a Deceased Taxpayer. A copy of the death certificate is required. Only a surviving spouse or dependent can claim it in this situation; the personal representative of the estate cannot.8Minnesota Department of Revenue. Claim for a Refund for a Deceased Taxpayer (Form M23)
If the deceased person received a refund check but never cashed it, the refund becomes part of the estate. Mail the completed Form M23, the death certificate, and the uncashed check to: Minnesota Decedent Refund, Mail Station 4110, 600 N. Robert St., St. Paul, MN 55146-4110.8Minnesota Department of Revenue. Claim for a Refund for a Deceased Taxpayer (Form M23) If more than one person is eligible, all must sign the waiver section on Form M23 agreeing who receives the refund.