Minnesota Renter’s Property Tax Refund

Quick Facts

• Benefit type: Refundable state tax refund that reimburses renters for the share of property taxes built into their rent payments.
• Who it helps: Minnesota renters of apartments, manufactured homes, cooperative units, and certain assisted-living facilities who have modest household income.
• How much you can get: Refunds vary based on income and rent; many households receive between $500 and $1,500, while large families in higher-rent areas can exceed $2,500.
• How to claim: File Form M1PR (Property Tax Refund) with the Minnesota Department of Revenue, either electronically via the department’s free e-File system or by mailing a paper form with landlord-signed CRP certificates.
• When paid: Refunds are typically issued by mid-August for on-time filers, with direct deposit available for faster payment.

Program Overview

Minnesota’s Renter’s Property Tax Refund is part of the broader Homestead Credit Refund system, which also includes relief for homeowners. The state recognizes that renters indirectly pay property taxes through their monthly rent, so it calculates a “property tax equivalent” and returns a portion based on income. Because the refund is refundable, you don’t need to owe any Minnesota income tax to receive it. The program is funded through the state’s general revenue and is indexed annually, ensuring that income thresholds and maximum refunds keep pace with inflation.

The refund uses a unique formula: it takes the rent paid, multiplies it by a statutory percentage (currently 17%), and compares that amount to the household income. As income rises, the percentage of rent eligible for refund decreases. Minnesota updates the income brackets and refund multipliers each year, so checking the current-year M1PR instructions is essential. Renters who live in tax-exempt housing, such as college dorms or subsidized housing with payments based on income, generally do not qualify because no property tax is levied.

Unlike a tax credit that reduces taxes owed, the Renter’s Property Tax Refund is processed separately from the income tax return. You can file the M1PR even if you are not required to file Form M1 (state income tax). Many households miss out because they assume they must file an income tax return; in reality, the state encourages all eligible renters to submit the property tax refund annually.

Eligibility Requirements

To qualify you must:

1. Have rented in Minnesota: You must have rented a qualified Minnesota residence for at least one day during the year. Eligible housing includes apartments, mobile homes, co-ops, and assisted living facilities that pay property taxes or make payments in lieu of taxes. Rentals outside Minnesota do not qualify.
2. Hold a valid Certificate of Rent Paid (CRP): Your landlord must issue a CRP by January 31 listing the total rent you paid and the property tax they paid. Manufactured home park owners provide a similar M1PR certificate.
3. Meet income limits: Your total household income (THI) must fall below the annual threshold—$79,060 for refunds based on rent paid in 2024 (filed in 2025). THI includes taxable and nontaxable income for all members of the household, including Social Security, unemployment, public assistance, and contributions from roommates if they are part of the household.
4. Not be claimed as a dependent: If someone else claims you as a dependent on their federal return, you cannot receive the refund.
5. Be a Minnesota resident or part-year resident: Nonresidents generally do not qualify unless they paid Minnesota income tax on 100% of their income and meet all other rules.

Special Cases

• Roommates: If multiple renters share an apartment, each person receives their own CRP showing their share of rent. Each individual files separately using the rent they personally paid.
• Assisted living or nursing home residents: Facilities often provide special CRPs that indicate the property tax portion of fees. Verify that the facility is licensed and subject to property tax.
• Students: College students renting off-campus housing qualify if they pay rent and are not claimed as dependents. Rent paid for dorm rooms does not count because universities do not pay property tax.
• Housing Choice Voucher participants: If you pay a portion of rent and the landlord pays property tax, you may qualify based on your out-of-pocket rent. The CRP will reflect only your share.

Benefit Calculation Details

• Property tax equivalent: Multiply total rent paid by 17% (subject to annual adjustment). For example, $12,000 in rent yields $2,040 in property tax equivalent.
• Income-based refund: The state applies a sliding-scale multiplier to the property tax equivalent. Lower-income households receive a higher percentage back. For 2024 claims, the maximum refund for renters with THI under $10,300 is $2,570.
• Minimum refund: If the calculated refund is under $1, the Department will not issue payment. Many households above $75,000 income have small refunds; evaluate whether filing is worth your time.
• Special refund for 2023 renters: If your rent increased by more than 12% and at least $100 from 2022 to 2023 (and not due to improvements or extra services), you may qualify for a one-time special refund even if your income is higher. Use Schedule 2 of Form M1PR.

Application Process

1. Collect CRPs: Landlords must provide CRPs by January 31. If you moved, contact former landlords early. For roommates, ensure each tenant receives a separate CRP with their share of rent.
2. Determine household income: Gather W-2s, 1099s, Social Security statements, unemployment 1099-Gs, and documentation of any other income. Minnesota’s definition of THI includes nontaxable income, so review the M1PR instructions carefully.
3. Download forms or use e-File: Access Form M1PR and instructions. The Department’s e-File system is free and guides you through the calculations. Third-party tax software also supports M1PR, but some charge a fee.
4. Enter rent and income: On the M1PR, list total rent from each CRP, specifying months and addresses. Enter all household income sources. The form will calculate the refund automatically once you fill in the tables.
5. Sign and submit: Electronic filers sign digitally. Paper filers must sign and date the return and attach CRPs. Mail to the address on the form. Keep copies of everything for your records.
6. Select direct deposit: Provide routing and account numbers for faster payment. Otherwise, the state will mail a check.
7. Track status: Use the Where’s My Refund? tool on the Department website. You’ll need your Social Security number and the refund amount claimed. Status updates appear after 10 days for e-filed returns and after 6 weeks for paper filings.

Required Documentation Checklist

• Certificate(s) of Rent Paid (CRP) or manufactured home park certificates.
• Income documentation for every household member: W-2s, 1099s, SSA-1099, unemployment statements, and proof of nontaxable income such as child support.
• If claiming the special refund, documentation showing rent increases (prior leases, notices).
• If filing paper returns, attach copies of CRPs and any explanatory statements (e.g., roommate allocations).
• Bank account information for direct deposit.

Deadlines and Timing

• Regular deadline: August 15 following the end of the rent year (e.g., August 15, 2025 for rent paid in 2024).
• Late filing: You may still file up to one year later (August 15, 2026 for rent paid in 2024). After that, refunds are forfeited.
• Processing time: The Department begins issuing renter refunds in mid-August. Early e-filers often receive direct deposit in 30 days; paper filers may wait 8–10 weeks.
• Amended returns: If you discover an error, file an amended M1PR using the same form, checking the “Amended” box and explaining the changes. You generally have 3.5 years from the original due date.

Interaction with Other Programs

• Supplemental Nutrition Assistance Program (SNAP): Renter refunds are excluded from income for SNAP and most public assistance programs, so receiving a refund should not reduce benefits.
• Energy assistance: Many households use refunds to catch up on heating bills. Coordinate with Energy Assistance Program providers; they may consider the refund when establishing payment plans but cannot reduce benefits.
• Minnesota child care assistance: The refund is not counted as income but can be used toward co-pays. Document that the funds came from the state refund if asked.
• Tax filing strategy: Consider filing your M1PR simultaneously with your income tax return so you have all documents in one place, even though the forms are processed separately.

Maximizing Your Refund

1. Verify CRP accuracy: Landlords occasionally misreport rent or property tax amounts. Compare the CRP to your lease and payment records. If incorrect, request a corrected CRP; landlords face penalties if they refuse.
2. Include all household income: Underreporting income can delay or deny your refund. If you had roommates who are not part of your household (e.g., they paid their own CRP), do not include their income.
3. Keep copies: Maintain CRPs and proof of rent payments (bank statements, receipts) for at least three years in case of audit.
4. Use e-File: Electronic filing reduces math errors and speeds payment. The system also saves your data, making next year’s filing easier.
5. Plan for rent increases: If your rent spikes, evaluate whether you qualify for the special refund. Keep documentation of reasons for the increase.

Common Mistakes to Avoid

• Missing the deadline: Waiting beyond the August 15 deadline without filing for an extension means you must rely on the one-year grace period. Mark calendars and file once you receive your CRP.
• Using gross rent that includes utilities: If rent includes utilities, report the total rent; however, if utilities are paid separately to third parties, do not include them.
• Forgetting roommates: If you shared rent but one roommate did not pay their share, you cannot claim that portion unless you actually paid it. Document any extra payments you made.
• Not counting nontaxable income: Household income includes Social Security, MFIP, SSI, child support, and more. Failing to report these can trigger letters from the Department seeking clarification.
• Incorrect addresses: If you moved multiple times, list each address separately with the rent paid for that location.

Example Scenarios

• Single renter in Minneapolis: Jordan paid $1,200 per month in 2024 and had $32,000 in income. The property tax equivalent is $2,448. Using the 2024 tables, Jordan’s refund is approximately $950. Filing via e-File in May results in a direct deposit in August.
• Family in Rochester: The Lopez family paid $1,800 per month in rent and had combined household income of $48,000. Their refund calculation yields about $1,350, which they use to cover back-to-school costs.
• Senior in assisted living: Margaret, age 78, pays $4,000 per month at a taxable assisted living facility. Her CRP shows property tax equivalents of $8,160. With $25,000 household income, she qualifies for the maximum refund near $2,500, which helps offset increased medical expenses.
• Manufactured home owner: Sam owns a manufactured home in a park and pays lot rent of $550 monthly. The park owner provides a certificate showing property tax portion. With $22,000 income, Sam receives a refund of around $600 and uses it to pay insurance premiums.

Frequently Asked Questions

• Can I get the refund if I live in subsidized housing? If your rent is based on income and the landlord does not pay property tax, you may not qualify. Check whether you received a CRP; no CRP generally means ineligibility.
• Do I need to attach the CRP when filing electronically? No. Keep it for your records. The Department may request it later, so store digital copies securely.
• What if my landlord refuses to issue a CRP? Landlords must provide CRPs by law. Report noncompliance to the Department of Revenue; they can impose penalties and help you obtain the document.
• Is the refund taxable income? No. The refund is not taxable on federal or state returns and does not affect eligibility for most assistance programs.
• Can I split the refund with roommates? Each eligible renter files separately using their own CRP. The state issues payment directly to the claimant.

Additional Resources

• Minnesota Department of Revenue Renter’s Refund page
• Form M1PR and instructions
• Where’s My Refund tool
• Landlord CRP information
• Volunteer Income Tax Assistance (VITA) locator for help completing your M1PR