Market Value Exclusion for Veterans with a Disability
Where to apply in Minnesota
Your county assessor decides homestead classification, the market value exclusions and the blind/disabled classification; you apply to the county assessor where the home is. The Minnesota Department of Revenue runs the Homestead Credit Refund and the Senior Citizens Property Tax Deferral.
The office that handles property in each Minnesota county, with its phone number. In some places another office takes exemption applications; the “Where to apply” box above says which.
Homestead Classification and Homestead Market Value Exclusion
Homestead status gives a lower class rate and the Homestead Market Value Exclusion: 40% of market value for homes worth $95,000 or less (maximum $38,000 off taxable value). Above $95,000 the exclusion drops by 9% of the value over $95,000 and ends at $517,200. Example: a $280,000 home gets $21,350 off its taxable value.
Who qualifies
You own the home and occupy it as your sole or primary residence. Only one homestead per married couple in Minnesota. Some relatives of the owner (parents, children, siblings and others) can qualify for a relative homestead.
How to apply
Apply to your county assessor. Give the Social Security Number or ITIN of each owner and each owner's spouse who lives there (and the spouse of each owner, even if not living there).
Deadline
Apply by December 31 to qualify for taxes payable the next year.
Renewal
One-time. Tell the assessor within 30 days if you move, sell, your marital status changes, or your spouse's occupancy changes, or you may face a penalty. The exclusion is automatic for homesteads.
Market Value Exclusion for Veterans with a Disability
$150,000 off your home's taxable market value for a 70% or higher service-connected disability rating; $300,000 off for a 100% permanent and total rating.
Who qualifies
Honorably discharged veterans with a service-connected disability rating of 70% or more who own and occupy a homesteaded home on December 31. Also: surviving spouses of a 100% P&T veteran or of a service member who died in service, or who receive Dependency and Indemnity Compensation ($300,000, until they remarry or sell); and VA-approved primary family caregivers of a 70%+ veteran ($150,000 or $300,000).
How to apply
Apply to your county assessor's office. The home must already be classified as a homestead. Bring your DD-214 (or other discharge papers) and VA documentation of your disability rating; your county veterans service officer can help.
Deadline
Apply by December 31 to qualify for taxes payable the next year.
Renewal
Veterans: continues while you qualify. Surviving spouses must apply to continue receiving it.
Special Homestead Classification for Blind or Disabled Owners (Class 1b)
A lower class rate on part of the homestead of an owner who is blind or permanently and totally disabled: the first $50,000 of market value is taxed at a 0.45% class rate instead of the regular 1% homestead rate; value above that is taxed at the regular rate.
Who qualifies
Homestead owners who are legally blind or permanently and totally disabled (receiving disability payments from a qualifying agency such as Social Security, the VA, a pension plan, SSI or workers' compensation), with the blindness or disability occurring by June 30 of the year you apply. Not available if the home already gets the disabled veterans exclusion.
How to apply
Apply to your county assessor with proof: a letter or eye report from your eye doctor (blind), or a disability award letter and proof of payments from the agency (disabled).
Deadline
Apply by October 1 for taxes payable the next year.
Renewal
One-time while you live in the home; it moves with you if you notify the assessor within 30 days. It ends when the blind or disabled owner dies.
A state refund of part of your property tax, based on your income and tax. A second refund (the 'special refund') is available if your net property tax on the same home rose more than 12% and at least $100 from 2025 to 2026, for reasons other than your improvements. A 2025 law change raised 2025 homeowner refunds by nearly 15%.
Who qualifies
Homeowners who owned and lived in their homesteaded home on January 2, 2026 (for the 2026 refund). Seniors 65+, people with a permanent and total disability, and those with retirement contributions can claim subtractions from income.
Income limit
For the 2026 refund (based on 2025 income): household income less than $142,490. The special refund has no income limit.
How to apply
File Form M1PR, Homestead Credit Refund, online, through tax software or on paper. Use the property tax statement you get from the county in March or April.
You pay property tax equal to 3% of your prior-year household income; the State pays the rest as a loan (a lien on the home). You repay it with interest (variable, not over 5%) when you sell or cancel.
Who qualifies
You are 65 or older in the year you apply (if married, one spouse 65+ and the other at least 62), have owned, lived in and homesteaded the home for the last 5 years, have no reverse mortgage, life estate, state or federal tax liens or judgment liens, and other liens are under 75% of market value.
Income limit
Total household income of $96,000 or less.
How to apply
Apply online or on Form CR-SCD to the Minnesota Department of Revenue. Include this year's property tax statement and a lien/title report dated within 30 days (a certificate of title from the county recorder for Torrens property, or an owners and encumbrances report from a licensed abstracter).
Generally no. The blind/disabled 1b classification moves with you if you notify the assessor within 30 days. A surviving spouse can carry the disabled veterans exclusion to one new home if the new home's market value is equal to or lower than the old one's and they apply by December 31.
Good to know in Minnesota
Apply for homestead by December 31; missing it costs you the market value exclusion and the Homestead Credit Refund for the next year (Minnesota Department of Revenue).
A home whose net tax jumps more than 12% (and at least $100) can get a special refund with no income limit (Minnesota Department of Revenue).
VA-approved primary family caregivers of a disabled veteran can get the veterans market value exclusion on their own homestead (Minnesota Department of Revenue).
Savings estimate for Minnesota
Roughly what an exemption could save you a year: the value it takes off, times your tax rate.
Eligibility finder for Minnesota
Answer a few questions to see which property tax breaks may fit you.
Document checklist for Minnesota
Pick the breaks you plan to apply for. You get a checklist of forms, documents, steps and deadlines to print or keep on your phone.
Questions about property tax exemptions in Minnesota
Is there a homestead exemption in Minnesota?
Yes: the Homestead Classification and Homestead Market Value Exclusion. Homestead status gives a lower class rate and the Homestead Market Value Exclusion: 40% of market value for homes worth $95,000 or less (maximum $38,000 off taxable value). Above $95,000 the exclusion drops by 9% of the value over $95,000 and ends at $517,200. Example: a $280,000 home gets $21,350 off its taxable value. Who qualifies: You own the home and occupy it as your sole or primary residence. Only one homestead per married couple in Minnesota. Some relatives of the owner (parents, children, siblings and others) can qualify for a relative homestead.
When is the deadline to apply for the homestead exemption in Minnesota?
By December 31 to qualify for taxes payable the next year.
Do I have to reapply for the homestead exemption every year in Minnesota?
One-time. Tell the assessor within 30 days if you move, sell, your marital status changes, or your spouse's occupancy changes, or you may face a penalty. The exclusion is automatic for homesteads.
Are there property tax breaks for seniors in Minnesota?
Homestead Credit Refund (homeowners' property tax refund): A state refund of part of your property tax, based on your income and tax. A second refund (the 'special refund') is available if your net property tax on the same home rose more than 12% and at least $100 from 2025 to 2026, for reasons other than your improvements. A 2025 law change raised 2025 homeowner refunds by nearly 15%. Property Tax Deferral for Senior Citizens: You pay property tax equal to 3% of your prior-year household income; the State pays the rest as a loan (a lien on the home). You repay it with interest (variable, not over 5%) when you sell or cancel.
Do disabled veterans get a property tax exemption in Minnesota?
Market Value Exclusion for Veterans with a Disability: $150,000 off your home's taxable market value for a 70% or higher service-connected disability rating; $300,000 off for a 100% permanent and total rating.
Can I move my exemption to a new home in Minnesota?
Generally no. The blind/disabled 1b classification moves with you if you notify the assessor within 30 days. A surviving spouse can carry the disabled veterans exclusion to one new home if the new home's market value is equal to or lower than the old one's and they apply by December 31.
Where do I apply for property tax exemptions in Minnesota?
Your county assessor decides homestead classification, the market value exclusions and the blind/disabled classification; you apply to the county assessor where the home is. The Minnesota Department of Revenue runs the Homestead Credit Refund and the Senior Citizens Property Tax Deferral.
Think your home’s assessed value is too high? An exemption and an appeal are separate: you can do both.
Median effective tax rate: U.S. Census Bureau, American Community Survey, 2020–2024 5-year estimates, tables B25103 (median real estate taxes paid, owner-occupied homes) and B25077 (median value, owner-occupied homes). The rate is the median tax paid divided by the median home value.