MN Property Tax Refund and Relief Information

Property Tax Refunds

Minnesota has two property tax refund programs available to owners who have also Homesteaded their property - the regular property tax refund (sometimes called the "circuit breaker") and the special property tax refund. As a Homesteader you may be eligible for one or both of these refunds. 

These programs are administered through the State of Minnesota.  Please visit the Department of Revenue website for more information.  For more information on what a Homestead is and how to apply for Homestead, please visit the Homesteads page.

• PLEASE NOTE: If you owe delinquent property taxes on your home, they must be paid before you can apply for your refund. If you pay the taxes (or make arrangements to pay them) by August 15, 2013, you will still be able to apply. You will need to get a receipt or a signed confession of judgment statement from your county auditor's or treasurer's office and include it with your Form M1PR.
  

Refund Qualifications for Life Estates

Elderly homeowners may transfer their property to a relative or friend but continue to occupy the property under a life estate. The occupants continue to retain an ownership interest in the home and will qualify for the property tax refund, provided they meet the regular qualifications, regardless who pays the property taxes.

For more information, go to the State of MN Homeowners Refund Information.

Special Relief Programs

The State of Minnesota also administers the Senior Citizen Property Tax Deferral program. This program allows people 65 or older to defer a portion of their homestead property taxes. The deferral begins with real estate taxes payable the year after you make the initial application. To be eligible, you must: 

• be at least 65 years old,
• own and occupy the property as a homestead, 
• have a household income of $60,000 or less, and
• have lived in your home for at least 15 years.

If you qualify your taxes cannot exceed 3% of your net income. The State of Minnesota will pay any remaining tax as a low interest loan. This is not a tax forgiveness program - the unpaid tax along with accumulated interest will become a lien on the property. This lien must be satisfied upon sale of the property.

Participants who apply for property tax refunds or rebates will not receive the refunds or rebates as cash payments. Instead, the refunds or rebates will be applied to the deferred property tax total. Form CR-SCD and instructions are available from the State of Minnesota. For more information on the Senior Citizen Property Tax Deferral program, please read this fact sheet.

Important facts to know about the program:

• This is a loan from the state to you
• Interest will be charged on the loan
• A lien will attach to the property
• The tax and loan information becomes public data
• The amount of property tax you pay is based on your income the year before you enter the program