Minnesota Homestead Exemption: Exclusion, Deadline and How to Apply

Minnesota does not take a flat dollar amount off every homestead. Instead, a home that the county assessor classifies as a homestead (an owner-occupied primary residence) gets the Homestead Market Value Exclusion under Minn. Stat. 273.13, subdivision 35. The exclusion is 40% of market value for homes valued at $95,000 or less, shrinks as value rises, and disappears for homes valued at $517,200 or more. Homestead status also opens the door to a lower class rate, the state's income-based Homestead Credit Refund, the special property tax refund for homeowners whose tax rose sharply, and larger exclusions for veterans with a disability. You apply to your county assessor by December 31 to qualify for taxes payable the next year. For other states, see our guide to homestead exemptions by state.

Information last verified on October 7, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Minnesota's homestead classification and Homestead Market Value Exclusion (Minn. Stat. 273.124 and 273.13), the market value exclusion for veterans with a disability, the class 1b classification for blind and disabled owners, the Homestead Credit Refund and the special property tax refund (Minn. Stat. chapter 290A), the senior property tax deferral (chapter 290B), the creditor homestead exemption (chapter 510) and the probate homestead (Minn. Stat. 524.2-402). It does not cover how each local levy is calculated, assessment appeals, agricultural or business classifications beyond those named, or other states' laws.

How the Minnesota homestead exemption works

Minnesota does not give homeowners a fixed exemption that comes off the bill. What people call the "homestead exemption" is a property classification. The county assessor classifies an owner-occupied primary residence as a homestead, and that status lowers the home's taxable value and its class rate.

The Minnesota Department of Revenue explains what the classification can lead to: "Having a homestead classification may qualify your property for a Homestead Market Value Exclusion or one of the following: Property Tax Refund Market Value Exclusion for Veterans with a Disability Special Homestead Classification for Property Owners who are Blind or Disabled Property Tax Deferral for Senior Citizens" (Minnesota Department of Revenue, Homestead Classification).

"Homesteads are administered by counties," so your county assessor decides the classification and the exclusions. The Department of Revenue handles the Homestead Credit Refund and the senior deferral (Department of Revenue).

How much is the Homestead Market Value Exclusion?

The exclusion lowers the home's taxable market value before the tax is computed. Minn. Stat. 273.13, subdivision 35 sets a sliding scale (Minn. Stat. 273.13):

"For a homestead valued at $95,000 or less, the exclusion is 40 percent of market value. For a homestead valued between $95,000 and $517,200, the exclusion is $38,000 minus nine percent of the valuation over $95,000. For a homestead valued at $517,200 or more, there is no valuation exclusion."

The largest exclusion, $38,000, goes to a home valued at $95,000. Above that, the exclusion shrinks as the value rises, and a home valued at $517,200 or more gets none. The dollar effect on your bill depends on your local tax rates, so this page does not estimate a saving.

The exclusion applies to more than ordinary houses. Under subdivision 35, "property classified as 4d(2) under subdivision 25, paragraph (e), clause (2), class 1a, or 1b under subdivision 22, and the portion of property classified as class 2a under subdivision 23 consisting of the house, garage, and surrounding one acre of land, shall be eligible for a market value exclusion." In practice that covers residential homesteads and the house, garage and one acre of a farm homestead.

Homestead property also gets a lower class rate. For class 1a residential homesteads, the first $500,000 of market value has a 1% rate and value over $500,000 has a 1.25% rate (Minn. Stat. 273.13, subd. 22).

Whether every local levy, such as a voter-approved referendum levy, uses the reduced value is not covered here. Ask your county assessor how the exclusion appears on your statement.

Who is eligible for homestead classification

Minn. Stat. 273.124 defines the basic test: "Residential real estate that is occupied and used for the purposes of a homestead by its owner, who must be a Minnesota resident, is a residential homestead" (Minn. Stat. 273.124).

A few rules shape who can claim it:

• One per couple. "You may only have one homestead per married couple in the state of Minnesota" (Department of Revenue).
• Trusts. "Property held by a trustee under a trust is eligible for homestead classification if the requirements under this chapter are satisfied" (Minn. Stat. 273.124).
• Relatives. Certain relatives of the owner or the owner's spouse, such as parents, children and siblings, can also qualify the property as a "relative homestead." However, "Relative homesteads do not qualify for a property tax refund" (Department of Revenue).

How and when to apply for homestead in Minnesota

Where and by when: "Apply to your county assessor by December 31 to qualify for taxes payable the next year" (Department of Revenue).

What you need: "You must provide the Social Security Number or Individual Taxpayer Identification Number for: All owners who occupy the property The spouse of each owner, even if they do not live at the location."

The form: The Commissioner of Revenue sets the application. Under Minn. Stat. 273.124, "The commissioner shall prescribe the content, format, and manner of the homestead application required to be filed under this chapter pursuant to section 270C.30." Your county assessor provides the current application; this page does not name a form number.

If you miss December 31: "If a homestead application has not been filed with the county by December 31, the assessor shall classify the property as nonhomestead for the current assessment year for taxes payable in the following year, provided that the owner may be entitled to receive the homestead classification by proper application under section 375.192" (Minn. Stat. 273.124). Section 375.192 is a separate request for relief; ask your county about it.

Renewal: "Once granted homestead classification, you do not need to reapply. The county assessor may at any time ask you to submit an additional application or provide other documentation to verify that you continue to meet the requirements for homestead classification" (Department of Revenue).

Changes: "You must notify the assessor within 30 days if you move, sell your property, your marital status changes, or occupancy of your spouse changes."

Market value exclusion for veterans with a disability

Minn. Stat. 273.13, subdivision 34 gives a larger exclusion to the homestead of a veteran with a service-connected disability (Minn. Stat. 273.13):

"(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, except as provided in clause (2); and (2) for a total (100 percent) and permanent disability, $300,000 of market value is excluded."

The veteran must have been honorably discharged, have a disability rating of 70% or more certified by the U.S. Department of Veterans Affairs, and own and homestead the property. A property that receives the veteran exclusion does not also receive the regular Homestead Market Value Exclusion or class 1b treatment. On a farm homestead, "only the portion of the property consisting of the house and garage and immediately surrounding one acre of land qualifies for the valuation exclusion under this subdivision."

Deadline: "To qualify for a valuation exclusion under this subdivision a property owner must apply to the assessor by December 31 of the first assessment year for which the exclusion is sought." Each year, "By July 1, the county veterans service officer must certify the disability rating and permanent address of each veteran receiving the benefit under paragraph (b) to the assessor."

Surviving spouses: If a veteran with a total and permanent disability dies, and "the spouse holds the legal or beneficial title to the homestead and permanently resides there, the exclusion shall carry over to the benefit of the veteran's spouse until such time as the spouse remarries, or sells, transfers, or otherwise disposes of the property," subject to the statute's other conditions. A spouse who moves may keep the benefit on a new home: under paragraph (n), a spouse who "no longer holds the legal or beneficial title to the property may continue to receive the exclusion for a property other than the property for which the exclusion was initially granted until the spouse remarries or sells, transfers, or otherwise disposes of the property." This applies only if the spouse applies to the assessor by December 31 of the first assessment year, holds title to and permanently resides in the new home, the new home's estimated market value is no higher than the original home's, and the spouse has not used this rule for another property before. Subdivision 34 also covers a first-time application by the spouse of a service member who died of a service-connected cause, within two years of the death, and the homestead of a VA-approved primary family caregiver when the veteran has no Minnesota homestead. A surviving spouse who holds title to and permanently resides in the homestead can also file a first-time application for the $300,000 exclusion if the veteran did not apply for or receive it before dying, when the veteran was honorably discharged and the VA certifies the veteran's total and permanent disability or the spouse has been awarded Dependency and Indemnity Compensation (subd. 34(k)).

Changes: "the owner of a property that has been accepted for a valuation exclusion must notify the assessor if there is a change in ownership of the property or in the use of the property as a homestead."

Class 1b: homestead of a blind or disabled owner

Class 1b property includes "homestead real estate or homestead manufactured homes used for the purposes of a homestead by: (1) any person who is blind as defined in section 256D.35, or the person who is blind and the spouse of the person who is blind; (2) any person who is permanently and totally disabled or by the person with a disability and the spouse of the person with a disability" (Minn. Stat. 273.13, subd. 22). The statute lists a third group as well: certain surviving spouses of permanently and totally disabled veterans.

"The first $50,000 market value of class 1b property has a net classification rate of 0.45 percent of its market value." The property qualifies "only if the commissioner of revenue or the county assessor certifies that the homestead occupant satisfies the requirements." This page does not state a class 1b application deadline or form; ask your county assessor.

Homestead Credit Refund (property tax refund)

The Homestead Credit Refund is a payment from the State, not a reduction on the county bill. "If you're a Minnesota homeowner, you may qualify for a Property Tax Refund. The refund provides property tax relief depending on your income and property taxes" (Department of Revenue, Property Tax Refund). You file it with the Department of Revenue, not the assessor.

Minn. Stat. 290A.04 computes the refund from the property tax payable and household income. In the statute's base table, the refund is the tax above a percentage of household income, the maximum is $3,310, and "No payment is allowed if the claimant's household income is $135,410 or more" (Minn. Stat. 290A.04). Those are 2023 base-year figures. Subdivision 4 provides: "The commissioner shall annually adjust the dollar amounts of the income thresholds and the maximum refunds under subdivision 2 as provided in section 270C.22. The statutory year is 2023." For the 2025 refund, the Department of Revenue's table caps the refund at $3,480 before the one-time 2026 increase, and "Your total household income must be less than $142,490" (2025 Form M1PR instructions). The 2025 refund (based on property taxes payable in 2026) was due August 17, 2026, and the final deadline to claim it is August 16, 2027.

Special property tax refund. A homeowner who owned and occupied the same home on January 2 of both years can claim an additional refund, with no income limit, if the homestead's property tax rose more than 12% and by at least $100. It equals 60% of the increase above the greater of 12% of the prior year's tax or $100, up to $1,000, and it does not apply to an increase caused by improvements made after the prior year's assessment date (Minn. Stat. 290A.04, subd. 2h). It is claimed on Form M1PR with Schedule M1PR-SR (2025 Form M1PR instructions).

Most claimants are paid in the fall. Under Minn. Stat. 290A.07, "A claimant not included in subdivision 2a shall receive full payment after September 15 and before September 30" (Minn. Stat. 290A.07).

2026 one-time increase. The 2026 omnibus tax act, Laws 2026, chapter 128, section 11, provides: "For claims filed based on taxes payable in 2026, the commissioner shall increase by 14.88 percent the refund otherwise payable under Minnesota Statutes, section 290A.04, subdivision 2" (Laws 2026, ch. 128). The Department of Revenue describes the change this way: "A recent law change increased the 2025 Minnesota property tax refund for homeowners by nearly 15%. If you filed for a 2025 Homestead Credit Refund before July 15, 2026, we will automatically adjust your refund to include the increase" (Department of Revenue). The increase applies to the 2025 Form M1PR, which is the claim based on property taxes payable in 2026. The instructions add a line for it: "Multiply line 17 by 14.88% (0.1488). This is your increased 2025 property tax refund for property taxes payable in 2026" (2025 Form M1PR instructions).

Renters no longer use the homeowner process. "Starting in 2024, you claim and get the Renter's Credit as part of your income tax return. You no longer file a Renter's Property Tax Refund return (Form M1PR)."

Senior citizens' property tax deferral

Minn. Stat. chapter 290B lets qualifying seniors defer part of their homestead property tax. The deferred amount becomes a lien that is repaid when the home is sold or transferred. Among the qualifications in Minn. Stat. 290B.03 (Minn. Stat. 290B.03):

• The homestead is owned and occupied by someone 65 or older (for a married couple, one spouse at least 65 and the other at least 62).
• "the total household income of the qualifying homeowners ... for the calendar year preceding the year of the initial application may not exceed $96,000."
• "the homestead must have been owned and occupied as the homestead of at least one of the qualifying homeowners for at least five years prior to the year the initial application is filed."
• There are no state or federal tax liens or judgment liens on the property, and total secured debt does not exceed 75% of the assessor's estimated market value.
• No mortgage or other lien on the property secures future advances, such as an open line of credit, unless its credit limit keeps total secured debt within the 75% test.

Apply to the Department of Revenue by November 1 for the following year's taxes (Minn. Stat. 290B.04). A participant pays no more than 3% of household income toward the homestead's property tax each year and the State lends the rest (2025 Form M1PR instructions); the interest rate is capped at 5% (Minn. Stat. 290B.07). A participant whose household income for the preceding year exceeded $96,000 must notify the Department in writing by July 1, and a required certification not filed on time brings a penalty of 20% of the taxes improperly deferred (Minn. Stat. 290B.04, subds. 3 and 5).

Losing homestead status and penalties for improper claims

Homestead status continues until the home is sold or transferred or stops being your homestead. You must notify the assessor within 30 days of a move, sale, change in marital status or change in a spouse's occupancy; failing to do so can bring a penalty and loss of homestead status.

Improper claims are expensive. When a homestead is found to have been improperly claimed, Minn. Stat. 273.124 directs that "The county auditor shall send a notice to the person who owned the affected property at the time the homestead application related to the improper homestead was filed, demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead benefits" (Minn. Stat. 273.124). The benefits to be repaid include the classification tax reduction and the market value exclusion, with interest, and the owner can appeal to the Minnesota Tax Court within 60 days.

Minnesota's creditor homestead exemption (a different law)

Minnesota's creditor homestead is a separate law in chapter 510, and its dollar figures have nothing to do with the property tax exclusion. Minn. Stat. 510.01 makes the owner-occupied home exempt from most creditors (Minn. Stat. 510.01):

"The house owned and occupied by a debtor as the debtor's dwelling place, together with the land upon which it is situated to the amount of area and value hereinafter limited and defined, shall constitute the homestead of such debtor and the debtor's family, and be exempt from seizure or sale under legal process on account of any debt not lawfully charged thereon in writing ..."

Section 510.01 goes on to except debts for work on or materials for the homestead and debts for services of laborers or servants.

How much is protected. The cap in Minn. Stat. 510.02 is indexed and adjusted on July 1 of even-numbered years. The Department of Commerce's official notice sets the figures used from July 1, 2026 at $540,000 for a homestead and $1,350,000 for a homestead used primarily for agricultural purposes: "The adjusted amounts contained in this Official Notice shall be used from July 1, 2026, onward" (Minnesota Department of Commerce). The Revisor's statute text still prints the earlier figures of $510,000 and $1,275,000, so a reader comparing sources will see both. The notice says "The next published adjustment is scheduled on or before April 30, 2028, for July 1, 2028."

How much land. "The homestead may include any quantity of land not exceeding 160 acres" (Minn. Stat. 510.02).

What it does not protect against. Under Minn. Stat. 510.05, "The amount of the homestead exemption shall not be reduced by and shall not extend to any mortgage lawfully obtained thereon, to any valid lien for taxes or assessments, to a claim filed pursuant to section 246.53 or 256B.15, to any charge arising under the laws relating to laborers or material suppliers' liens or to any charge obtained under section 481.13 pursuant to a valid waiver of the homestead exemption" (Minn. Stat. 510.05). Sections 246.53 and 256B.15 cover state claims for care and medical assistance. The exemption therefore does not make a home safe from every debt.

Bankruptcy. Minnesota is not an opt-out state. Under Minn. Stat. 550.371, "Except as provided in this section, the exemptions set forth in subsection (d) of section 522 of the Bankruptcy Act, United States Code, title 11, section 522(d), shall be available to residents of this state" (Minn. Stat. 550.371). Choosing between the federal and Minnesota exemptions has rules of its own; see our guide to Minnesota bankruptcy.

The homestead when an owner dies

Minnesota gives a surviving spouse a right to the homestead itself. Under Minn. Stat. 524.2-402, the homestead "descends free from any testamentary or other disposition of it to which the spouse has not consented in writing or as provided by law," going to the spouse outright if there are no surviving descendants, or to the spouse for life with the remainder to the decedent's descendants if there are (Minn. Stat. 524.2-402). For how this fits into an estate, see our Minnesota probate guide.

Related

• Homestead exemptions by state
• Minnesota bankruptcy exemptions and process
• Minnesota probate
• Minnesota property records and assessor searches

This article is general legal information about Minnesota law, including Minn. Stat. 273.124, 273.13, chapter 290A, chapter 290B and chapter 510, as verified on October 7, 2026. It is not tax or legal advice. For your specific situation, contact your county assessor, the Minnesota Department of Revenue, or a lawyer licensed in Minnesota.

Last updated: October 7, 2026.

Frequently Asked Questions

How much is the homestead exemption in Minnesota?

Minnesota uses a Homestead Market Value Exclusion instead of a flat exemption. It is 40% of market value for a homestead valued at $95,000 or less, $38,000 minus 9% of the value over $95,000 for homes valued between $95,000 and $517,200, and nothing at $517,200 or more (Minn. Stat. 273.13, subd. 35).

When is the deadline to file for homestead in Minnesota?

Apply to your county assessor by December 31 to qualify for taxes payable the next year. If no application is filed by December 31, the assessor classifies the property as nonhomestead for that assessment year (Minn. Stat. 273.124).

Do I have to reapply for homestead every year in Minnesota?

No. Once homestead is granted you do not reapply, though the assessor may ask for a new application or documents at any time. You must notify the assessor within 30 days if you move, sell, your marital status changes, or your spouse's occupancy changes.

Is the Minnesota homestead classification automatic when I buy a house?

No. You must apply to your county assessor by December 31 and provide the Social Security Number or ITIN of each occupying owner and each owner's spouse.

What is the Minnesota disabled veteran homestead exclusion?

Under Minn. Stat. 273.13, subd. 34, a veteran with a service-connected disability rated 70% or more can exclude $150,000 of the homestead's market value, and a veteran with a total (100%) and permanent disability can exclude $300,000. Apply to the assessor by December 31 of the first assessment year.

Who can get the Minnesota Homestead Credit Refund?

Homeowners whose household income is under the inflation-adjusted limit in Minn. Stat. 290A.04 can claim it from the Department of Revenue. For the 2025 refund (based on property taxes payable in 2026), household income must be less than $142,490, and the final deadline to claim it is August 16, 2027. A separate special refund of up to $1,000 has no income limit for homeowners whose property tax rose more than 12% and by at least $100. Relative homesteads do not qualify for either.

Can I have two homesteads in Minnesota?

No. The Department of Revenue states that you may only have one homestead per married couple in Minnesota. An improperly claimed homestead can require repayment of the benefits plus a penalty equal to 100% of them (Minn. Stat. 273.124).

Does the Minnesota homestead exemption protect my house from creditors?

A separate law, Minn. Stat. chapter 510, protects home equity up to $540,000 ($1,350,000 for an agricultural homestead) from July 1, 2026, per the Department of Commerce notice. It does not protect against mortgages, tax liens, certain state care claims or mechanics' liens, so it does not make a home safe from every debt.