Minnesota Property Tax Refund Calculator

How this calculator works

Minnesota is the only state with an income-based property-tax refund structurally embedded in its property-tax system. Under Minn. Stat. § 290A.04 the state — not the county — pays a refund directly to qualifying homeowners and renters once their property tax (or constructive property tax, for renters) exceeds a statutory percentage of household income. The mechanism is colloquially called the "Circuit Breaker" for homeowners and the "Renter's Credit" for renters; both refunds are claimed on the same Form M1PR filed with the Minnesota Department of Revenue.

There are three refunds layered together:

1. Regular Homeowner Refund — § 290A.04 Subd. 2. Income-tested, paid to homestead owners. Up to $3,500 for 2025 with a household-income ceiling of $135,410.
2. Renter's Property Tax Refund — § 290A.04 Subd. 2a. Income-tested, paid to renters on a constructive 17% of gross rent. Up to $2,640 for 2025 with a household-income ceiling of $73,270.
3. Targeting Refund — § 290A.04 Subd. 2h. No income limit. Triggered when a homeowner's year-over-year property-tax increase exceeds BOTH 12% AND $100. Refunds 60% of the increase above the 12% threshold, capped at $1,000.

All three are filed on Form M1PR by August 15 of the year following the property-tax year (§ 290A.07).

The Regular Homeowner Refund — § 290A.04 Subd. 2

The Regular Homeowner Refund applies to Class 1a residential homestead property under § 273.13 Subd. 22 — owner-occupied primary residence. The mechanism has three components:

• Copay: a statutory percentage of household income that the homeowner pays out of pocket BEFORE the refund kicks in. Rises from 1.0% at the lowest income bracket to 4.0% near the income ceiling.
• Refund percentage: a statutory percentage of property tax ABOVE the copay. Falls from 75% at the lowest bracket to 10% near the ceiling.
• Maximum refund: $3,500 for 2025.

The formula is:

• refund = min(refund% × max(0, property_tax − copay), $3,500)

The Minnesota Department of Revenue publishes a 30-page M1PR matrix lookup table indexed by household income and property tax paid. This calculator implements the published bracket curve as a piecewise-linear approximation; it matches matrix values within roughly $50 over most of the qualifying income range. The matrix is the binding figure for filing; the calculator is a planning estimate.

Homeowner bracket curve (2025)

| Adjusted income | Copay % | Refund % | | --- | --- | --- | | $0 – $9,999 | 1.0% | 75% | | $10,000 – $19,999 | 1.5% | 70% | | $20,000 – $29,999 | 2.0% | 60% | | $30,000 – $49,999 | 2.5% | 50% | | $50,000 – $69,999 | 3.0% | 35% | | $70,000 – $89,999 | 3.5% | 25% | | $90,000 – $109,999 | 3.75% | 15% | | $110,000 – $135,410 | 4.0% | 10% | | Above $135,410 | — | Ineligible |

The Renter's Property Tax Refund — § 290A.04 Subd. 2a

Renters do not pay property tax directly. The statute deems them to have paid property tax equal to 17% of gross rent for the year — the constructive property tax. The landlord reports the rental period and total rent on Form CRP (Certificate of Rent Paid) under § 290A.19, delivered to the tenant by January 31 of the year following.

Three differences from the homeowner track:

1. Lower income ceiling: $73,270 for 2025. Minnesota targets the renter refund to lower-income tenants.
2. Lower maximum refund: $2,640 for 2025.
3. Different bracket curve (slightly steeper copay rise, sharper refund-percentage drop).

Renter bracket curve (2025)

| Adjusted income | Copay % | Refund % | | --- | --- | --- | | $0 – $9,999 | 1.0% | 75% | | $10,000 – $19,999 | 1.5% | 65% | | $20,000 – $29,999 | 2.0% | 50% | | $30,000 – $44,999 | 2.5% | 35% | | $45,000 – $59,999 | 3.0% | 20% | | $60,000 – $73,270 | 3.5% | 10% | | Above $73,270 | — | Ineligible |

The Targeting Refund — § 290A.04 Subd. 2h

The Targeting Refund is separate from the regular refund and is the most distinctive feature of Minnesota's mechanism. It is triggered when a homeowner's property tax increases year-over-year by more than 12% AND by at least $100 — both gates must clear independently.

The refund equals 60% of the property-tax increase ABOVE the 12% threshold, capped at $1,000.

Critically, the Targeting Refund has NO INCOME LIMIT. A homeowner with $500,000 of household income still qualifies if the year-over-year jump clears the dual thresholds. The mechanism exists to absorb revaluation-shock and sudden levy increases; no other state has a comparable program.

Improvements to the property (additions, finished basements, new garage) are excluded from the year-over-year comparison under § 290A.04 Subd. 2h(b). Section 16 of the M1PR worksheet asks filers to net out improvement-driven increases explicitly.

Household income — § 290A.03 Subd. 3

The household-income definition for refund-eligibility is expansive. It equals federal AGI PLUS a statutory list of additions designed to capture cash flow that federal AGI excludes:

• Nontaxable Social Security and Railroad Retirement benefits
• The nontaxable portion of pension and IRA distributions
• Untaxed contributions to retirement accounts (401(k), 403(b), IRA, deferred compensation)
• Dependent care benefits
• MFIP, MSA, SSI, and general-assistance payments
• Workers' compensation, unemployment, and veterans benefits (excluding service-connected disability)
• Tax-exempt interest and dividends

From the augmented figure, subtract the following deductions:

• $5,500 per dependent — the dependent deduction (2025 figure)
• $14,750 — the senior/disability deduction if the filer or spouse is age 65 or older OR totally and permanently disabled (2025 figure)

The adjusted figure is the income tested for refund eligibility and the figure used to look up the copay and refund percentages.

A common error: filers report federal AGI as household income. AGI misses the Social Security additions, the nontaxable pension portion, and the untaxed retirement contributions. For retired households the difference can be tens of thousands.

A worked example — $4,000 property tax, $60,000 income

A Minnesota homeowner with $4,000 of property tax paid and $60,000 of household income, no dependents, not senior:

• Adjusted household income: $60,000 (no deductions)
• Bracket: 3.0% copay / 35% refund
• Copay: $60,000 × 3.0% = $1,800
• Excess over copay: $4,000 − $1,800 = $2,200
• Regular refund: 35% × $2,200 = $770
• No Targeting Refund (no prior-year comparison)

The homeowner files Form M1PR with the Minnesota Department of Revenue by August 15 of the year following, attaching the county Property Tax Statement.

A worked example — Minneapolis revaluation jump

A $400,000 Minneapolis (Hennepin County) homestead, household income $75,000, no dependents, not senior. The 2025 county-wide reassessment pushed the home's market value from $350,000 to $400,000; the property tax rose from $4,200 (prior year) to $5,100 (current year) — a 21.4% increase, $900 in dollars.

Regular Homeowner Refund:

• Bracket: 3.5% copay / 25% refund (at $75K)
• Copay: $75,000 × 3.5% = $2,625
• Excess: $5,100 − $2,625 = $2,475
• Refund: 25% × $2,475 = $619

Targeting Refund — both 12% AND $100 thresholds cleared:

• 12% threshold: $4,200 × 12% = $504
• Increase above threshold: $900 − $504 = $396
• Refund: 60% × $396 = $238

Total refund: $856 (Regular $619 + Targeting $238)

Without the Targeting Refund the homeowner would leave $238 on the table — and many do, because the Targeting Refund isn't well-advertised. This is exactly the scenario the § 290A.04 Subd. 2h mechanism was designed for.

A worked example — Renter in St. Paul

A renter paying $1,200/month ($14,400 annual) in St. Paul (Ramsey County), household income $35,000, no dependents, not senior:

• Constructive property tax: $14,400 × 17% = $2,448
• Bracket: 2.5% copay / 35% refund
• Copay: $35,000 × 2.5% = $875
• Excess: $2,448 − $875 = $1,573
• Refund: 35% × $1,573 = $551

The renter files Form M1PR with Form CRP from the landlord attached, by August 15 of the year following.

A worked example — Low-income senior homeowner

A homeowner age 70, $5,000 of property tax, $30,000 of household income, no dependents:

• Senior/disability deduction: $14,750
• Adjusted household income: $30,000 − $14,750 = $15,250
• Bracket: 1.5% copay / 70% refund
• Copay: $15,250 × 1.5% = $228.75
• Excess: $5,000 − $228.75 = $4,771.25
• Refund (uncapped): 70% × $4,771.25 = $3,339.88
• Refund (capped at $3,500): $3,340

The senior/disability deduction shifts this filer into a much more generous bracket. Without the deduction the homeowner would be in the 2.5% / 50% bracket and recover roughly $1,900 less.

Form M1PR mechanics — § 290A.07

File Form M1PR with the Minnesota Department of Revenue (NOT with your federal or state income-tax return on Form M1). The form is filed separately, often months after the income tax.

Attachments:

• Homeowner: county Property Tax Statement for the current property-tax year. The county auditor mails this in March; pull from the county portal if missing.
• Renter: Form CRP from each landlord during the year. Landlords must deliver by January 31 under § 290A.19; if delinquent, request in writing and escalate to the Department of Revenue.
• Targeting Refund: include both current-year and prior-year Property Tax Statements so the year-over-year comparison can be verified. Net out improvement-driven increases on the M1PR worksheet.

Deadline: August 15 of the year following the property-tax year (or rent-paid year). One-year extension available on showing of good cause; filings beyond the one-year extension are barred. File electronically via the Department of Revenue's e-Services portal or by paper.

Refund delivery: direct deposit (typically within 60 days) or paper check (90-day window). Refunds for property tax paid in 2025 and rent paid in 2025 begin disbursing in August 2026.

Property classifications — § 273.13

The class rate set by § 273.13 determines how much of market value is subject to the levy. Class rates apply BEFORE the M1PR refund; the refund is computed over property tax actually paid.

| Class | Description | Class rate | | --- | --- | --- | | 1a | Residential homestead (§ 273.13 Subd. 22) | 1.0% (first $500K), 1.25% (above) | | 4a | Residential non-homestead (§ 273.13 Subd. 25) | 1.25% | | 3a | Commercial-industrial (§ 273.13 Subd. 24) | 1.5% (first $150K), 2.0% (above) | | 2a | Agricultural homestead | Variable, generally lower |

Only Class 1a (homestead) qualifies for the Regular Homeowner Refund and the Targeting Refund. Class 4a flows through to the renter via the 17% CRP construction for the Renter Refund.

Homestead status is established under § 273.124 by occupying the property as a primary residence on December 1 and applying by December 31. Late applications retroactive to January 1 of the current year are allowed in limited circumstances.

Common errors to avoid

• Reporting federal AGI as household income. AGI excludes the Social Security additions, the nontaxable pension portion, and untaxed retirement contributions. Use the M1PR Worksheet 1 calculation, not your Form 1040 AGI.
• Forgetting the dependent and senior/disability deductions. $5,500 per dependent and $14,750 for senior/disability filers are subtractions from household income BEFORE the refund computation. Filers who don't apply them get a smaller refund (or are wrongly disqualified).
• Missing the Targeting Refund. It has no income limit, but most filers don't realize it exists. Anyone whose property tax jumped 12% AND $100 year-over-year should check eligibility — particularly common in revaluation years for Hennepin, Ramsey, and Anoka counties.
• Counting improvement-driven tax increases in the Targeting comparison. Net out additions and finished basements before the year-over-year comparison; only the levy-driven portion counts.
• Missing the August 15 deadline. M1PR is filed separately from M1; many filers forget after the April income-tax deadline. Set a calendar reminder.
• Renters: missing Form CRP. Required from each landlord during the year; escalate to the Department of Revenue if delinquent.
• Renters: claiming overlapping rental periods. If you moved during the year, you need a separate CRP from each landlord covering distinct periods.
• Confusing the M1PR refund with the § 290B Senior Citizen Property Tax Deferral. Different mechanisms. The M1PR refund pays cash; the § 290B deferral defers tax above 3% of income as a lien against the property repayable at sale, transfer, or death.

Tools, not advice. Confirm refund eligibility, the binding household-income definition, and the matrix-table figure against the Minnesota Department of Revenue's M1PR instructions before relying on any result for filing or planning purposes.