Minnesota Tax Credits and Deferrals
There are certain Minnesota Tax Credits and Deferrals that may affect certain property owners' situations. They include:
If your household income is less than approximately $128,280, you may qualify for the Homestead Credit Refund (also known as the Circuit Breaker refund). This program, which has existed since the 1970s, is intended to reduce tax burdens for homeowners with relatively low incomes and relatively high property tax burdens. Some important facts about this program are summarized below.
Available each year to owners of homestead property
Applies only to the taxes attributable to the house, garage, and one acre on agricultural homestead property
Available to all owners of residential homestead and agricultural homestead property with household incomes of less than $128,280
Refund is on a sliding scale, based on your income and your total property tax burden
The maximum refund is $3,140
Also available to renters
To determine eligibility and refund amounts, complete Minnesota tax form M1PR
If your total property taxes increase by more than 6 percent and more than $100 from one year to the next, you may qualify for a state refund equal to a portion of the increase. There is no income limit for this refund and the maximum refund is $2,500.
To determine eligibility and refund amounts, complete Minnesota tax form M1PR.
If you are 65 years or older and have a household income of $96,000 or less, you may be eligible to defer a portion of the property taxes on your home, through the Senior Citizen Property Tax Deferral Program. The program:
Limits the maximum amount of property tax you pay to 3 percent of your total household income
Provides predictability; the amount of tax you pay will not change for as long as you participate in this program
The 2023 Legislature modified the requirements of this program by increasing the household income limit to $96,000. This new income limit is in effect for taxes payable in 2024 and later years.