Minnesota property tax refunds come from two main sources: the state Property Tax Refund and the Homestead Property Tax Credit, both handled by the Minnesota Department of Revenue.
The Property Tax Refund is a direct payment to homeowners whose property taxes exceed a certain percentage of their household income. The Homestead Property Tax Credit reduces your tax bill if you own and live in your home and meet income limits. Both are claimed on your Minnesota state income tax return — you do not apply separately to the Department of Revenue.
If you own your home and paid property taxes in Minnesota during the tax year, you may be due money back. The refund amount depends on your household income, the value of your home, and the property taxes you actually paid. You claim it when you file your state return, either on paper or through tax software.
Key Takeaways
- Minnesota homeowners claim property tax refunds on their state income tax return using Form M1-PR (Property Tax Refund) or by checking the homestead credit box on their return.
- You must own and live in the property as your primary residence, and your household income must fall below the state limit for the year you are claiming.
- The refund is calculated based on your income, property taxes paid, and home value — higher income means a smaller refund or none at all.
- If you file your return by the April deadline, the Department of Revenue processes refunds and sends payments by late summer, though timing varies by filing method.
- If you did not claim the refund in prior years, you can file an amended return within three years to recover the money owed.
Who qualifies for a Minnesota property tax refund
You must own and live in the property as your primary residence on December 31 of the tax year. Renters, owners of vacation homes, and owners of investment properties do not may have access to. Your household income must also fall below the state limit — for 2023 returns, the limit was $94,000 for most filers, though it varies slightly by filing status.
The refund phases out as income rises. If your household income is near or above the limit, you may receive a reduced refund or nothing at all. The Department of Revenue uses your federal adjusted gross income (AGI) from your federal tax return to calculate this, so the income threshold is the same whether you file single, married filing jointly, or head of household.
You do not need to have paid a specific amount in property taxes to claim the refund — even modest property tax payments can result in a refund if your income is low enough. However, you must have actually paid property taxes during the year; if your property taxes were paid by someone else or if you received a property tax exemption, you cannot claim the refund for that portion.
How to claim the refund on your Minnesota tax return
If you file on paper, use Form M1-PR (Property Tax Refund), available on the Minnesota Department of Revenue website. Fill in your household income, the property taxes you paid during the year, and the estimated market value of your home. Attach the form to your Minnesota Form M1 (state income tax return) when you mail it in.
If you file electronically through tax software or a tax preparer, the software will ask whether you own a home and lived in it as your primary residence. Answer yes, and the software will calculate your refund automatically. You do not need to print or mail a separate form — the refund claim is included in your electronic return.
You need your property tax statement to complete the form or software entry. This shows the total property taxes you paid during the calendar year. If you paid property taxes in installments or if your taxes were escrowed through a mortgage lender, your statement will show the total for the year. If you cannot locate your statement, contact your county assessor's office — they can provide a copy.
Timeline for receiving your Minnesota property tax refund
If you file your return by the April 15 deadline, the Department of Revenue typically processes property tax refunds between June and August. The exact timing depends on when your return is received and processed. Paper returns take longer than electronic returns — electronic filers usually see refunds by mid-July, while paper filers may wait until August or early September.
The Department of Revenue sends refunds by check or direct deposit, depending on how you filed. If you chose direct deposit on your return, the refund goes to the bank account you listed within two to three weeks of processing. If you are receiving a check, allow an additional week or two for mail delivery after the Department sends it.
If you file after April 15, your refund will be delayed. Late returns are processed after the April rush, so you may not receive your refund until fall. If you owe state income tax, the Department of Revenue will subtract your property tax refund from what you owe before sending you anything.
What to do if you did not claim the refund in past years
You can file an amended return to claim a property tax refund for up to three prior tax years. Use Form M1-X (Amended Minnesota Income Tax Return) and attach a completed Form M1-PR for each year you are claiming. Mail both forms to the Department of Revenue address listed on the form.
The Department of Revenue will recalculate your refund based on your income and property taxes for each year you claim. Processing an amended return takes longer than a regular return — expect four to six months for a response. If the Department approves your claim, you will receive a refund check or direct deposit for the total amount owed across all years claimed.
Keep copies of your property tax statements for the years you are claiming. If the Department requests documentation, you will need to show proof of the property taxes you paid. County assessor records are public, so you can also request copies from your county if you no longer have your original statements.
Homestead Property Tax Credit as an alternative or addition
The Homestead Property Tax Credit is a separate benefit that reduces your property tax bill directly rather than providing a refund. You claim it on the same state return as the Property Tax Refund — in fact, you may be due both. The credit is calculated differently and has different income limits, so some homeowners receive a credit when they would not receive a refund, or vice versa.
The credit is worth more for lower-income homeowners and phases out at higher incomes. Unlike the refund, the credit is applied to your property tax bill before you pay it, which means your county assessor's office receives notice and reduces the amount you owe. You do not receive a separate check for the credit; instead, your property tax bill is lower.
If you claim both the refund and the credit, the Department of Revenue ensures you do not receive double benefits for the same property taxes. The software or form will calculate both and give you whichever is larger, or a combination if that results in a higher total benefit.
Tracking your Minnesota property tax refund status
The Minnesota Department of Revenue does not offer a real-time tracking tool for individual refunds. However, you can call the Department's Property Tax Refund line at 651-296-3781 to ask about the status of your return. Have your Social Security number and the year you are asking about ready when you call.
If you filed electronically, you can also check the status of your overall state return through the Department's website. The status tool shows whether your return has been received and processed, though it does not break down the refund separately. If your return shows as processed and you have not received your refund within the expected timeframe, call the Department to ask whether there is a delay or a problem with your claim.
If you filed a paper return and have not received your refund within three months of filing, contact the Department. Provide your name, Social Security number, and the tax year. The Department can tell you whether your return was received and processed, and if your refund was mailed or if there is an issue holding up payment.
What to do if your refund does not arrive
If your refund was supposed to arrive by direct deposit and did not, first check your bank account to confirm the deposit was not made. If it was not, contact your bank to ask whether there was a problem receiving the deposit. Provide the bank with the date you expected the deposit and ask them to check their records.
If your bank confirms no deposit was received, contact the Minnesota Department of Revenue. The Department can verify whether the refund was sent and to which account. If there was an error in the account number you provided on your return, the Department can issue a replacement check instead.
If you were supposed to receive a check and it did not arrive within four weeks of the Department sending it, contact the Department to report the missing check. The Department can issue a replacement check or direct deposit to your bank account if you prefer. Provide your name, Social Security number, and the tax year so the Department can locate your refund record.
Frequently Asked Questions
Can I claim a property tax refund if I own a condo or townhouse?
Yes, as long as you own the property and live in it as your primary residence. Condos and townhouses may have access to the same way single-family homes do. You will still need your property tax statement showing the taxes you paid on the unit.
What if my property taxes were paid by my mortgage lender through escrow?
The refund is based on the total property taxes paid during the year, regardless of who paid them. Your mortgage lender's escrow account paid the taxes on your behalf, so you can still claim the refund. Your property tax statement or mortgage statement will show the amount escrowed and paid.
Do I lose the refund if my income is slightly over the limit?
The refund does not disappear at the income limit — it phases out gradually. If your income is above the limit, you may receive a reduced refund rather than nothing. The Department of Revenue calculates the exact amount based on how far over the limit you are.
Can I claim a refund for a year I already filed if I forgot to include it?
Yes, you can file an amended return within three years of the original return deadline. For example, if you did not claim the refund on your 2022 return, you can file an amended return anytime before April 15, 2026. Use Form M1-X and attach Form M1-PR for the year you are claiming.
What if I sold my home during the year — can I still claim a refund?
You can claim a refund for the property taxes you paid while you owned the home during that year. If you owned and lived in the home for part of the year, you claim the refund based on the taxes paid during the months you owned it. Your property tax statement will show the amount for the full year; contact your county assessor if you need the amount for only the months you owned it.