Minnesota Revenue announces guidance for one-time increase to homeowner refunds

The Minnesota Department of Revenue is announcing guidance for homeowners for the one-time increase to 2025 Homestead Credit Refunds of nearly 15%. The one-time increase to 2025 refunds was part of the tax bill passed by the Minnesota Legislature and signed into law by Governor Tim Walz in late May.

Already filed for your 2025 Homestead Credit Refund?

Homeowners who have already filed their 2025 Homestead Credit Refund returns do not need to take any action to receive the one-time increase. They should not amend their return to receive the increase. The department will adjust their returns and add the increase to their refund.

Their refund will be about 15% larger than the amount they originally filed. The department will not send letters to impacted taxpayers for this change.

Still need to file for your 2025 Homestead Credit Refund?

The department is working to update the free online filing system for homeowners to reflect the one-time increase. During this time, homeowners can still file their 2025 returns.

Qualifying homeowners who have not yet filed their 2025 Homestead Credit Refund return can file for the 2025 refund until August 16, 2027. Homeowners can file for free using the department’s online filing system.

• Homeowners filing between now and mid-July will have their returns adjusted and the one-time increase automatically added to their refund by the department.
• Homeowners filing after mid-July will see the one-time increase already included in their refund when filing. No adjustments will need to be made to these refunds.

Plan to file for your 2025 Homestead Credit Refund on paper or with a software provider?

The department has updated paper forms to include the one-time increase. Tax software providers that include Homestead Credit Refund filing in their offerings will be updating their systems to reflect the increase by mid-July. Questions about a software provider’s product should be directed to their customer support.

Not sure if you qualify for the Homestead Credit Refund?

You may qualify if you are a Minnesota (full- or part‑year) resident with household income under $142,490, you owned and lived in your Minnesota homestead on January 2, 2026, the property is classified as your homestead (or your application was approved), and you have no delinquent property taxes.

Learn more about the Homestead Credit Refund and how to apply on the department’s website.

Need more information on recent tax law changes?

The one-time increase to 2025 refunds is one part of a larger tax bill passed by the Minnesota Legislature and signed into law by Gov. Walz. The department is working to implement the provisions that impact Minnesota’s tax code and the tax filing system. Learn more about that work and the other tax law changes in the bill by visiting the tax law changes webpage.