Minnesota's Property Tax Refund System

Minnesota offers property tax refunds through two main programs: the Homestead Property Tax Refund and the Renters' Property Tax Refund. Both are based on your household income and what you paid in property taxes or rent during the previous year. The state sends refunds once a year, typically in the fall, to people who meet income thresholds and file the correct form with their tax return.

You do not have to own your home outright or have a mortgage to receive a refund. You also do not need to have paid property taxes directly—renters can receive a refund based on the property taxes their landlord paid, which are built into the rent. The key is that your household income must fall below a certain level, and you must have lived in Minnesota for the full tax year.

Key Takeaways

  • Homeowners and renters can both receive Minnesota property tax refunds if their household income is below the state's threshold, which changes each year.
  • You must file Form M1PR (homestead refund) or Form M1PR-R (renters' refund) with your Minnesota tax return to receive a refund.
  • The state processes refunds in the fall and deposits them directly to your bank account or mails a check, depending on how you filed your return.
  • If you did not file a Minnesota tax return because your income was too low, you can still file just to claim the property tax refund.
  • Refund amounts vary based on your income, property taxes paid or rent paid, and whether you own or rent your home.

Income Limits for Homeowners

Homeowners can receive a property tax refund if their household income falls below a certain level. For the 2023 tax year (refunds issued in 2024), the income limit was $89,340 for a single person and higher for households with dependents. The exact limit changes each year, so you should check the current year's threshold on the Minnesota Department of Revenue website before filing.

Your household income includes wages, self-employment income, Social Security, pensions, interest, dividends, and other sources. It does not include certain items like workers' compensation or some disability payments. If you are married and file jointly, both spouses' income counts toward the household total.

The refund amount decreases as your income rises. If you are just below the income limit, you may receive a smaller refund than someone with a lower income. The state uses a formula that takes your income, your property taxes paid, and your household size into account.

Income Limits for Renters

Renters can receive a property tax refund if their household income is below the same threshold as homeowners. The refund is based on the assumption that a portion of rent paid goes toward property taxes—typically 20 percent of rent is counted as property tax for refund purposes.

To receive a renter's refund, you must have paid rent for at least five months during the tax year and lived in Minnesota for the full year. You do not need to provide proof of rent paid; the state uses the amount you report on Form M1PR-R. However, if the state audits your return, you may need to show a lease or rent receipts.

Like the homeowner refund, the renter refund decreases as income increases. A renter with income near the threshold will receive less than a renter with significantly lower income, even if both paid the same amount in rent.

Who Does Not may have access to

You cannot receive a Minnesota property tax refund if your household income exceeds the state's threshold for that year. You also cannot receive a refund if you did not live in Minnesota for the entire tax year, even if you lived there for most of it.

Homeowners who did not own their home for the full tax year cannot receive a refund for that year. If you bought your home partway through the year, you can file for a refund the following year. Renters must have paid rent for at least five months; if you moved in late in the year, you may not meet this requirement.

If you are claimed as a dependent on someone else's tax return, you cannot receive your own property tax refund. Additionally, if you are a non-resident alien, you are not may be able to access, though some visa holders may be treated as residents for tax purposes.

How to File for a Refund

To receive a property tax refund, you must file a Minnesota tax return and include the correct form. Homeowners file Form M1PR (Homestead Property Tax Refund); renters file Form M1PR-R (Renters' Property Tax Refund). Both forms are filed with your state income tax return, not separately.

If your income is too low to require filing a federal tax return, you can still file a Minnesota return just to claim the property tax refund. You will need to report your household income and either the property taxes you paid (homeowners) or the rent you paid (renters). Keep receipts or documentation in case the state asks for proof.

You can file your return on paper or electronically through tax software or a tax preparer. If you file electronically and the state approves your refund, the money is deposited directly to your bank account. If you file on paper, the state mails a check. Direct deposit is faster—typically a few weeks after the state processes your return.

When Refunds Are Issued

Minnesota processes property tax refunds once a year, in the fall. The exact timing depends on when you file your return. If you file early in the year, your refund may be issued in September or October. If you file closer to the deadline in April, your refund may not arrive until November or December.

The state does not issue refunds throughout the year. If you file your return in March and the state approves your refund, you will wait until the fall to receive it. This is different from federal income tax refunds, which are issued year-round as returns are processed.

You can track the status of your refund on the Minnesota Department of Revenue website using your Social Security number and the amount of your refund. The site shows whether your return has been received, is being processed, or has been approved and is awaiting payment.

What to Do If You Do Not Receive Your Refund

If you filed your return and the state approved your refund but you have not received it by December, contact the Minnesota Department of Revenue. Have your Social Security number, the tax year in question, and the refund amount ready. The state can tell you whether the refund was mailed or deposited and can investigate if it appears to be lost.

If the state says your refund was deposited to your bank account but you did not receive it, contact your bank. The deposit may have been rejected if your account information was incorrect or if your account was closed. Your bank can search their records and may be able to recover the funds.

If you filed your return but the state denied your refund, you will receive a notice explaining why. Common reasons include income exceeding the threshold, not living in Minnesota for the full year, or not owning or renting a home for the required period. You can appeal the decision by contacting the Department of Revenue within 30 days of receiving the notice.

Frequently Asked Questions

Can I get a refund if I own a second home or rental property?

No. The homestead refund is only for your primary residence—the home where you live most of the time. Rental properties and second homes do not may have access to. If you rent out a property, you cannot use the rent you collect to claim a refund.

What if I moved to Minnesota partway through the year?

You cannot receive a refund for a year in which you did not live in Minnesota for the full 12 months. If you moved to Minnesota in June, you would not be may be able to access for that tax year's refund. You could file for a refund the following year if you meet all other requirements.

Do I have to file a federal tax return to get the Minnesota refund?

No. If your income is too low to require a federal return, you can file only a Minnesota state return to claim the property tax refund. The state allows this specifically so people with low incomes can receive the refund they are due.

Can I claim a refund for multiple years at once?

You can file amended returns for prior years if you did not file originally or if you made a mistake. However, there are time limits—generally you can amend a return up to three years after the original due date. Contact the Minnesota Department of Revenue about filing for past years.

What happens if my income changes after I file?

The refund is based on your income for the tax year in question, not your current income. If your income was below the threshold when you filed, you receive the refund even if your income is higher now. The state does not adjust refunds based on income changes after the return is filed.