In Minnesota, when your home is classified as “homestead” the taxable market value of your home is reduced (as long as its fair market value is less than $413,800) which generally results in lower real estate taxes for you.
To qualify for the homestead classification, you must satisfy two conditions:
- First, the home must be occupied by an owner or relative of the owner; and
- Second, the home must be used as a primary place of residence.
The State of Minnesota maintains the homestead program for residents who own and occupy their home or have a qualifying relative who occupies the home. The technical term for the program is “The Homestead Market Value Exclusion”. The program provides two key benefits for qualifying homeowners:
- It reduces the taxable market value of the property (for properties valued under $413,800 only), which in turn may lower taxes; and
- Having the homestead classification is one of the qualifying factors for homeowners to receive the State of Minnesota Property Tax Refund.
Additional qualifications for homestead classification:
- You must own the property, or be a relative or in-law of the owner. If you are a son, a daughter, a parent, a grandchild, a grandparent, a brother, a sister, an aunt, an uncle, a niece or a nephew you will qualify.
- You or your relative must occupy the property as the primary place of residence.
- The occupant must be a resident of the State of Minnesota. Note: If the occupant is a relative of the owner, the owner does not have to be a Minnesota resident.
- You must file a Certificate of Real Estate Value for homestead status to be granted.
- Note: You can receive homestead status for more than one property, if a relative uses a second home owned by you as their primary residence.