Minnesota offers several property tax relief programs for qualifying residents, including seniors and individuals who are blind or permanently and totally disabled.
Senior Citizens Property Tax Deferral Program
The Senior Citizens Property Tax Deferral Program allows eligible homeowners to defer a portion of their property taxes.
Important: This program is not claimed on your tax return. You must apply directly through the Minnesota Department of Revenue.
Eligibility Requirements
To qualify, all of the following must be true:
- You are 65 or older in the year you apply. If married, one spouse is at least 65, and the other is at least 62.
- Your household income is $96,000 or less.
- You have owned and lived in your home for at least 5 years, and it has been homesteaded for 5 years.
- You do not have a reverse mortgage, life estate, or state/federal tax liens.
- Other liens do not exceed 75% of the estimated market value.
How the Program Works
Once accepted into the program:
- The maximum amount of property tax you pay is 3% of your total household income.
- The state pays the remaining tax as a loan, which becomes a lien and must be repaid (with interest not exceeding 5%) when the home is sold, or the deferral ends.
For full details and application materials, visit the Minnesota Department of Revenue site at:
https://www.revenue.state.mn.us/property-tax-deferral-senior-citizens
Special Homestead Classification for Blind or Disabled Individuals (Class 1b)
Minnesota’s Special Homestead Classification (Class 1b) provides a reduced property tax classification rate on the first $50,000 of the market value of a qualifying homestead.
Who Qualifies?
You must:
- Own the property as your homestead, and
- Be legally blind (as defined in Minn. Stat. § 256D.35) or
- Be permanently and totally disabled, receiving payments from a qualifying agency such as the SSA, VA, or workers’ compensation programs.
Your blindness or disability must have occurred on or before June 30 of the year you apply.
Benefit Amount
- The first $50,000 of your homestead’s market value is taxed at 0.45% instead of the standard rate.
- Remaining value is taxed at the normal class rates for residential homestead property.
How to Apply
Submit documentation supporting blindness or disability to your county assessor.
Once approved, the classification continues as long as you live in the home.
More information:
https://www.revenue.state.mn.us/special-homestead-classification