There are certain Minnesota Tax Credits and Deferrals that may affect certain property owners’ situations. They include:

Minnesota Homestead Credit Refund

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

Special Property Tax Refund

If your total property taxes increase by more than 12 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.

To determine eligibility and refund amounts, complete Minnesota tax form M1PR.

Senior Citizen Property Tax Deferral

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.