Tax Relief Opportunities
Potential Ways to Offset Your Tax Impact
You may be eligible for ways to offset increases to your property taxes, including:
Homestead credit refund – the state’s largest property tax refund program.
Special one-year refund – for excessive increases (12% increase and at least $100).
Senior tax deferral – helping those 65+ manage property tax bills.
Renters’ property tax credit – tax relief for renters.
The referendum may make you eligible for these refunds/credits or may increase the amount from any refunds/credits you already receive. In addition, an increase in property taxes may be deductible on your federal tax return if you itemize deductions.
What is the Homestead Credit Refund?
The Homestead Credit Refund program began in 1967 and today is received by over 500,000 Minnesota homeowners.
Homestead Credit Refunds are provided on a sliding scale and based on your household income and property tax bill. The refund increases as your property taxes increase, up to as much as $3,310 each year.
Excess property taxes: Refunds will range from 53% to 88% of the excess property tax you pay, as determined by a state formula based on income.
How do I know if I qualify for the Homestead Credit Refund?
Through the Minnesota Department of Revenue, the Homestead Credit Refund Program offers a refund to homeowners who meet certain qualifications. The amount of the refund is based on household income and total property taxes paid. To receive the refund, you must file Form M1PR with the Minnesota Department of Revenue. The proposed referendum may make you eligible for this refund or increase the amount you receive. Here is a table illustrating some examples of the impact relative to the proposed bond referendum. Learn more here.
Requirements:
Your total household income must be less than $142,490.
You must be a Minnesota resident or part-year resident to qualify for a property tax refund.
You must have owned and occupied your home on January 2, 2026.
Your property must be classified as your homestead, or you must have applied for homestead classification and had it approved.
Your homestead must have no delinquent property taxes. Generally, property taxes are not delinquent if you have either paid them or signed a confession of judgment.
