Minnesota Increased the Homestead Credit Refund: What Bemidji Homeowners Should Know

Property taxes are one of those expenses homeowners know are coming every year.

What sometimes gets overlooked is that Minnesota has a program that can return some of that money to qualifying homeowners — and for 2025 property taxes, the refund got considerably better.

Minnesota approved a one-time increase of nearly 15% to the 2025 Homestead Credit Refund. If you already filed for the refund, the Minnesota Department of Revenue says you generally do not need to do anything to receive the increase. If you have not filed yet, you may still be able to claim it.

If you own and live in a home around Bemidji or elsewhere in Minnesota, this is worth understanding.

What Is Minnesota's Homestead Credit Refund?

The Minnesota Homestead Credit Refund is designed to provide property-tax relief to qualifying homeowners.

It is sometimes casually referred to as the Minnesota property-tax refund. Depending on your household income and property taxes, the state may refund a portion of what you paid.

There are two main ways a homeowner may qualify:

• A regular refund based primarily on household income and property taxes.
• A special refund based on how much your property taxes increased from one year to the next.

You may qualify for one or both.

Minnesota Homestead Credit Refund Information

What's Different for the 2025 Refund?

The big change is a one-time increase of nearly 15% to the Homestead Credit Refund for 2025 property taxes.

If you filed before July 15, 2026, the Minnesota Department of Revenue says it will automatically adjust your refund to include the increase.

That means homeowners who already filed should not need to submit an amended return simply to receive the additional amount.

If you have not filed yet, the increased refund is still available to qualifying homeowners.

Who May Qualify for the Regular Refund?

For the 2025 Homestead Credit Refund, the Minnesota Department of Revenue says the basic requirements for the regular refund include:

• You owned and lived in your home on January 2, 2026.
• The home was classified as your homestead.
• Your 2025 household income was less than $142,490.
• You paid or made arrangements to pay the property taxes on the home.

There are also certain income subtractions that may help some homeowners qualify or increase the size of the refund.

Those can include circumstances involving dependents, retirement-account contributions, age and disability.

So even if you assume your income is too high, it may still be worth checking the actual rules rather than guessing.

There Is Also a Special Refund for Large Property-Tax Increases

This is another part of Minnesota's property-tax refund program that homeowners sometimes overlook.

You may qualify for the special Homestead Credit Refund if your property taxes increased significantly, even if your income would otherwise prevent you from qualifying for the regular refund.

For the current refund, the Minnesota Department of Revenue says the basic requirements include:

• You owned and lived in the same home on January 2, 2025, and January 2, 2026.
• Your net property tax increased by more than 12% from 2025 to 2026.
• The increase was at least $100.
• The increase was not caused by improvements you made to the property.

If you opened your property-tax statement and were surprised by how much the bill increased, this is definitely worth investigating.

What If You Haven't Filed Yet?

The regular filing date for Minnesota's Homestead Credit Refund is August 15.

However, missing that date does not necessarily mean you've lost the refund.

Minnesota allows the Property Tax Refund to be filed up to one year after the regular due date. The Department of Revenue says the 2025 Homestead Credit Refund remains available until August 2027.

So if you did not file this summer, you may still have time.

Minnesota also offers an electronic filing system for qualifying homeowners.

File a Minnesota Property Tax Refund

How Much Are Minnesota Homeowners Receiving?

This is not a small or rarely used program.

The Minnesota Department of Revenue reported in August 2026 that nearly 600,000 homeowners claim the Homestead Credit Refund each year, with an average credit of more than $1,330.

Individual refunds can vary significantly based on household income, property taxes and other circumstances.

Still, with that many homeowners qualifying, it is worth taking a few minutes to see whether you may be eligible.

New Homeowners Should Understand Homestead Classification

There is another important piece of this that new homeowners should know about.

Homestead classification can affect both your property taxes and your eligibility for programs such as the Homestead Credit Refund.

If you recently purchased a home and use it as your primary residence, make sure you understand the homestead application process in the county where the property is located.

This is particularly relevant around Bemidji because our real-estate market crosses several county lines.

Depending on where you buy, your property may be located in Beltrami County, Cass County, Hubbard County, Clearwater County or another nearby county.

The local county assessor or auditor can help with questions about homestead classification for a specific property.

Keep Your Property-Tax Statement

When filing for the Homestead Credit Refund, the Minnesota Department of Revenue instructs homeowners to use the property-tax statement they receive from their county.

Do not use the Notice of Proposed Taxes when preparing the refund.

That distinction can be confusing because Minnesota homeowners receive several property-tax-related documents during the year.

Keeping the final property-tax statement with your tax records makes things much easier when it is time to file.

One More Reason to Pay Attention to Your Property Taxes

Property taxes are not the most exciting part of owning a home, but they are too significant to simply pay and forget about.

For the 2025 refund in particular, Minnesota homeowners have an unusually good reason to take another look because of the nearly 15% one-time increase in the Homestead Credit Refund.

If you've already filed, you generally should not need to do anything to receive the increase.

If you have not filed, don't assume you missed your opportunity.

And if your property taxes increased sharply from one year to the next, check the special refund requirements as well.

A few minutes spent reviewing your eligibility could potentially put meaningful money back in your pocket.

For official eligibility rules and filing information, always rely on the Minnesota Department of Revenue or consult your tax professional.

Minnesota Department of Revenue Property Tax Refund Information

Questions About Owning or Buying a Home Around Bemidji?

The Hoover Group works with buyers, sellers and homeowners throughout Bemidji and the surrounding Northern Minnesota communities.

If you're thinking about buying or selling, we're always happy to help you understand the local side of homeownership along with the real estate itself.

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