Homestead Classification

Applying for the Residential Homestead Classification
The residential homestead classification provides a property tax credit for property that is owned and occupied by the owner. The amount of the credit is shown on your property tax statement and is deducted from your property tax bill.

Homestead Market Value Exclusion
For a homestead valued at $95,000 or less, the exclusion is 40% of market value, yielding a maximum exclusion of $38,000 at $95,000 of market value. For a homestead valued between $95,000 and $517,200, the exclusion is $38,000 minus 9% of the valuation over $95,000. For a homestead valued at $517,200 or more, there is no valuation exclusion.

Qualifying for Homestead Classification
To qualify for the homestead classification, you must: (All 3 must apply.)

1. Be one of the owners of the property
2. Occupy the property as your primary residence
3. Be a Minnesota resident

Your county assessor will determine if you are a Minnesota resident for homestead purposes. Some of the conditions that may be used to determine your residency status include:

• Are you registered to vote in Minnesota?
• Do you have a valid Minnesota driver’s license?
• Do you file a Minnesota income tax return?
• Do you list property in Minnesota as your permanent mailing address?
• Do your children, if any, attend school in Minnesota?
• Are you a resident of any other state or country?

Certain relatives of the owner also may qualify for the residential relative homestead classification.

When Relatives of the Owner Qualify
Certain relatives can qualify for the residential relative homestead classification. The relative may be the owner’s parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece. This relationship may be either by blood or by marriage.

To apply for the residential relative homestead classification, the relative must complete and sign the residential relative homestead application. The owner of the property also must sign the residential relative homestead application. Applications are available at the County Assessor's Office or you may download the applications in the Homestead Forms section of this website.

To qualify for the residential relative homestead classification, the relative must: (All 3 must apply.)

1. Be a qualifying relative to one of the owners of the property
2. Occupy the property as your primary residence
3. Be a Minnesota resident

Please Note: Neither the owner of the property nor the related occupant may claim a property tax refund or the special property tax refund on a property receiving the relative homestead classification.