Don’t miss out: Minnesota’s homestead credit refund program for high property tax relief

Eligible homeowners in Minnesota may be able to receive one-time payments of up to $2,930 through the state’s homestead credit refund program. The program is intended to provide relief for those with high property taxes relative to their income. The amount of the refund is determined by the homeowner’s income, with deductions allowed for dependents and claimants who are over 65 or disabled, according to a report by The US Sun on January 12, 2023.

The program states that as Income increases, the threshold percentage will also increase, the share of tax over the threshold that the taxpayer must pay (the “copay percentage”) will increase, and the maximum refund will decrease. In 2022, the maximum refund for claims filed was $2,930. However, homeowners with income exceeding $119,790 are not eligible for a refund.

According to the Minnesota Department of Revenue, homeowners looking to claim a refund through the homestead credit program must file a separate Minnesota Department of Revenue Form M1PR in addition to their individual income tax form. Claims for taxes payable in 2023 that are filed before August 15, 2023, will be paid out starting in late September of that year. Those who file electronically may receive their refund up to a month earlier. The deadline for filing claims for taxes payable in 2023 is August 15, 2024, and any claims filed after that date will not be eligible for a refund.