New Law: Who Qualifies For Minnesota’s New Property Tax Refund Boost?

ST. PAUL, MN — Gov. Tim Walz signed a new tax bill that includes a one-time increase to Minnesota's homeowner property tax refund program.

Eligible homeowners will see a 14.88 percent increase to their homestead credit refund based on property taxes payable in 2026.

The increase is part of HF 2438, the tax bill Walz signed Wednesday as part of the final batch of bills from the legislative session.

The one-time increase will cost the state's general fund $125 million, according to the House Session Daily.

The homestead credit refund is Minnesota's property tax refund program for homeowners.

To qualify, homeowners generally must own and occupy their home, have it classified as a homestead with their county, and pay or arrange to pay their property taxes, according to the Minnesota Department of Revenue.

KSTP reported that lawmakers said homeowners making less than $143,000 a year qualify for the one-time credit, which is expected to be about $173.

Homeowners must apply through the Minnesota Department of Revenue to receive the refund.

The tax bill was one of 14 bills Walz signed Wednesday. The final batch of legislation also included funding for Hennepin County Medical Center, a new criminal offense of grooming, changes to grant oversight, higher education fraud prevention measures and a $1.2 billion bonding bill for capital projects.

HF 2438 also includes changes related to federal tax conformity, a sustainable aviation fuel tax credit, a 100 percent tax on fraud, and other tax and credit changes, according to the governor's office.