The Minnesota Department of Revenue is notifying homeowners about a one-time increase of nearly 15% to 2025 Homestead Credit Refunds, following tax legislation approved by the Minnesota Legislature and signed by Gov. Tim Walz in May.
Homeowners who have already filed for a 2025 Homestead Credit Refund do not need to take any action. The department will automatically adjust eligible returns and add the increase to refunds. Taxpayers should not amend their returns, and no notification letters will be sent.
The Department of Revenue is updating its online filing system to reflect the increase. Homeowners who file before mid-July will have their refunds adjusted automatically, while those filing after mid-July will see the increase included when they file.
Eligible homeowners can apply for a 2025 Homestead Credit Refund through Aug. 16, 2027. To qualify, homeowners must be a Minnesota resident with household income below $142,490, have owned and lived in their Minnesota homestead on Jan. 2, 2026, have the property classified as a homestead, and have no delinquent property taxes.
The one-time refund increase is part of a broader tax bill that included several changes to Minnesota tax law. The Department of Revenue said it is continuing work to implement those changes.
