Property Tax Spike? You Might Be Eligible for a Refund

If your property tax bill gave you sticker shock this year, you’re not imagining things. Many Twin Cities homeowners—especially in Minneapolis—are seeing increases of 15% or more. Rising city costs and declining commercial property values are shifting the tax burden onto residential properties.

But here’s some good news you may not have heard: Minnesota’s Special Property Tax Refund could help take the edge off your bill.

What is it?
This state program refunds part of the increase if your 2025 property taxes went up more than 12% and by at least $100 compared to last year. If eligible, you’ll receive 60% of the amount above that 12% threshold, and there’s no income limit.

Who Qualifies?

There are two types of Homestead Credit Refund:

• ​A regular refund based on your income and property taxes
  • ​You owned and lived in your home on January 2, 2025
  • Your household income for 2024 was less than $139,320
• A special refund based on how much your property tax increased
  • You owned and lived in the same home on January 2, 2024, and on January 2, 2025
  • Your home’s net property tax increased by more than 12% from 2024 to 2025
  • The net property tax increase was at least $100
  • The increase was not because of improvements you made to the property

You may qualify for one or both of these refunds.

How to apply:

• Have your 2024 Minnesota income tax return handy
• Download your 2025 property tax statement from your county’s website
• Apply online through the Minnesota Department of Revenue

Why it matters:
Most people don’t realize this refund exists, though it’s been around since 1980. But with tax hikes hitting harder this year, it’s finally getting the attention it deserves.

One Minneapolis homeowner reported that the entire application took just 15 minutes, and the refund was worth every second.

At Hearts & Hammers, we’re all about helping people stay in the homes they love. This refund won’t solve everything, but it’s a small way to push back against rising costs. Check if you qualify, and help spread the word to your neighbors!

Tip of the hat to Axios Twin Cities for helping highlight this overlooked program.