What Are Minnesota’s Requirement for Qualification for Homestead Taxes?
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.