Minnesota Homestead Classification + Market Value Exclusion, Plus the Homestead Credit Refund

Updated August 2026

Minnesota gives every owner-occupant a lower tax class rate and a market value exclusion. A separate, larger, income-tested refund is available through your state tax filing.

Owner-occupied Minnesota homes qualify for the lower homestead class rate plus a market value exclusion that shields part of the home's value from taxation, no income test. On top of that, an income-based Homestead Credit Refund returns a portion of property tax that exceeds a percentage of your household income.

Minnesota's Property Tax Relief Programs

Homestead Classification / Market Value Exclusion

What it does: Lower homestead class rate versus non-homestead property, plus a market value exclusion (for taxes payable 2026: homes valued $95,000 or less get a 40% exclusion, max $38,000, shrinking as value rises and phasing out at $517,200).

Who qualifies: Any owner-occupant. No income test.

Deadline and form: December 31 of the year prior to the tax year (Form CR-H). Citation: Minn. Stat. § 273.13, subd. 35.

Homestead Credit Refund (HCR)

What it does: A sliding-scale refund based on the share of household income spent on property tax, capped between roughly $650 and $3,310 depending on income tier. About 600,000 Minnesota homeowners claim it annually, averaging just over $1,330.

Who qualifies: Income-tested; check the current-year Minnesota Department of Revenue income chart for the exact ceiling.

Deadline and form: August 15 (late filing allowed up to about one year after) (Form M1PR). Citation: Minn. Stat. Chapter 290A.

An exemption or credit lowers your bill only after the assessed value is set. If that value is too high to begin with, you are overpaying on everything above it regardless of which relief programs you claim. Nobody checks the underlying value unless you do.

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How to Apply

Contact your county assessor's (or, where noted above, your state revenue department's) office for the current application form
Gather proof of ownership, occupancy, and, for income-tested programs, your prior-year income documentation
File before the deadline listed above, most jurisdictions do not accept late applications for that tax year
Confirm the relief shows up on your next assessment notice or tax bill

The Bottom Line

The classification and exclusion apply automatically once you're on file as a homestead. The Homestead Credit Refund is the piece worth checking closely if your property tax is a large share of your income, it's a real refund, not just a smaller bill.

Note: Program names, dollar figures, and income limits above are current as of August 2026 and are set or adjusted by the state legislature or department of revenue, not by AppealDesk. Some figures adjust annually, confirm the current-year number with your county or state before applying. AppealDesk helps homeowners identify available relief programs and appeal overassessments.

Most homeowners stack these programs on top of whatever value the assessor assigned and never question the value itself. It came from a mass-appraisal model, not an individual review of your home. It is worth checking once.

Check the value under your exemption

Enter your address to pull your county record free. If it looks too high, your $49 packet gives you everything to challenge it.