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1. What is homestead credit?

A homestead credit is a reduction according to Minnesota Statute 273.124 to the general property tax for certain properties occupied as a person’s primary place of residence.

2. How does a property I own qualify for a homestead credit?

For information, view the Homestead Credit Page.

3. Why must I provide my Social Security number?

Even though Social Security numbers are private information, under Minnesota Statute 273.124, subdivision 13, they must be provided before a homestead credit will be granted. Social Security numbers will be used to determine if owners or relatives of owners have applied for more than one homestead in Minnesota.

4. Are homestead credits on all properties the same?

No. The homestead credit is based on a number of factors. First, the homestead credit decreases as the property’s market value increases over a certain level established by law. Second, not all properties are eligible for full (100%) homestead credit. Third, there are other credits attached to homestead properties, such as credits for the blind, disabled, or paraplegic that may also affect the amount of the homestead credit received.

5. I own and live in a manufactured home located in a mobile home park. Are the homestead rules the same?

The basic rules allowing homestead status are the same for manufactured homes located on rented sites (these manufactured homes are taxed as personal property) as they are for all other real estate. The application deadline, however, is May 29 of the assessment year, which is also the year in which the taxes are due for personal property.

6. Do I have to file for homestead every year?

No. Property that is granted the homestead classification remains classified as homestead until the property is sold, transferred to another person, or is no longer used as a homestead. If you or your qualifying relative move from the property or you sell or transfer the property, by law you must notify the assessor’s office within 30 days.

7. What if I fail to comply with homestead laws or file a false homestead application?

A property owner who obtains or attempts to obtain homestead classification for a property other than his or her primary place of residence or the primary place of residence of his or her relative is, under Minnesota Statute 609.41, subject to a fine of up to $3,000 and/or up to 1 year of imprisonment. In addition, a penalty equal to 100% of the total homestead benefit will be added to the corrected tax amount under Minnesota Statute 273.124, subdivision 13.

8. What if the owner of a property moves to a nursing home or assisted living facility?

As long as the home is maintained as the owner’s homestead, the property will remain homestead. If the property is rented, offered for sale, or otherwise occupied by someone other than the owner, the property will become non-homestead for the following assessment year.

9. My neighbor goes “south” every winter. How long can an owner be absent without losing their homestead?

An owner of property may be away from home for a reasonable length of time without depriving the property of the homestead classification provided it is maintained as a home awaiting the owner’s return. An owner cannot maintain the property as a homestead if it is rented in the owner’s absence. The owner must retain his Minnesota residency in order to continue to claim homestead.

10. We own two properties in Minnesota and spend about 6 months at each home. Can we homestead both properties?

No. An owner may not have the benefits of the homestead classification in more than one place.

11. What if the owner is in the military and is absent due to active service?

The owner of a property that is on active duty in the military, or away from home due to service in the Peace Corps or VISTA, is entitled to homestead if they intend to return to the home after they are discharged or their service is completed and they continue to claim the property as their homestead.

12. Can I claim homestead on one home and my spouse claim homestead on our second home?

There are only 5 potential reasons to extend a separate homestead to married couples. If only 1 of the spouses occupies the property and the other spouse is absent due to:

- Pending marriage dissolution proceedings
- Legal separation
- Employment or self-employment in another location. In this case, both spouses must be employed or self-employed and the places of employment or self-employment must be a least 50 miles apart. Additionally, the homesteads must be 50 miles apart
- Other personal circumstances, not including intent to obtain 2 homestead classifications

13. We own and live on a farm. What qualifies for the homestead benefit?

The house that you live in, any outbuildings on the property, plus all agricultural property that you own within 4 townships distance of your home, qualifies for the homestead.

14. We own and live on a farm but we rent the land out to be farmed by someone else. Can we still get an agricultural homestead on the entire property?

Yes.

15. Are there any special circumstances that would allow homestead on a farm if the owner does not live there?

Yes. There are several special circumstances that would allow the owner to claim homestead on an agricultural property even if the owner does not live on the farm, such as:
- The owner’s son or daughter farms the property.
- The owner does not live on the farm, but is active in the day-to-day operation of the farm.
- The owner’s son, daughter, grandchild or parent lives on the farm.
- If a qualifying relative other than a son/daughter or parent lives on the farm, and the owner is not active in the day-to-day operation of the farm, homestead can be granted on the house, garage and 1 acre.

If you feel that any of these special circumstances apply to your situation and you are not currently receiving the homestead benefit, please contact the assessor’s office to inquire about your eligibility by calling 218-843-3615.