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Many Minnesota property owners are in line for bigger-than-expected refunds tied to their property taxes because of a beefed-up pot of money.

A bill passed by the Minnesota Legislature provides a one-time boost to the Homestead Credit Refund, a response to 

 imposed by various levels of government. The refund will be 14.88 percent more for qualifying homeowners.

“It's a good way to get immediate relief out to a program that really helps address those homeowners who have high property taxes in comparison to their incomes,” said Paul Marquart, the commissioner of the Minnesota Department of Revenue. “That's the effectiveness of it.”

Marquart said in total the added credit amounts to $125 million more in refunds. About 588,000 people participate in the Homestead Credit Refund program, and Marquart said the average increase to the refund will be $213. That will bring the average refund to around $1,641.

For those who have already filed their return for the 2025 Homestead Credit Refund, the increase will automatically be included.

For people who have not yet filed for the credit, applications are accepted until the return deadline in August 2027. The Minnesota Department of Revenue has an 

 for those seeking out the refund program.

The refunds are expected to be sent out in late September and early October.

To qualify for the Homestead Credit Refund you must own and occupy a home, pay or arrange to pay your property taxes and have your home classified as a homestead with your county. 

If a home is not yet classified as a homestead for 2025 taxes, it must have been owned and occupied on Jan. 2, 2026. Homeowners must have a 

household income in 2025 of less than $142,490

. In general, that includes federal adjusted gross income and certain nontaxable income.

“I have always told folks when it comes to this program is that if your property taxes are about two percent or more of your income, you probably qualify,” Marquart said.

The increased refund will only affect people in the regular Homestead Credit Refund program, not the other special homestead refund programs.

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Lawmakers added to an existing tax relief program after many homeowners saw steep increases to their annual property taxes.

How an increased Minnesota homestead credit will be doled out to offset higher property taxes

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