Qualifying as a Homestead
Homesteads may apply to residential and agricultural property. To qualify for homestead, you must own and occupy property as your principal place of residence (unless you qualify for a relative homestead - see below). You must also make application according to the state’s deadlines. In most cases, the owner must also be a Minnesota resident, but there are some exceptions for agricultural land.
Receiving the homestead designation on your property may reduce the taxable value of your property up to $30,400 depending on the value of your property, therefore possibly reducing your taxes. For agricultural homesteads, you will receive a credit up to $490 on your tax bill reducing your overall taxes (the credit was less than $490 in years prior to payable 2015).
In most cases, once you make application, your homestead will remain until you sell the property or you notify our office. You are required to notify our office within 30 days if you are no longer using the property as a homestead. Please call us at (651) 565-3669.
There are different requirements to receive homestead for agricultural land. Please contact our office at (651) 565-3669 for more information. Additionally, there is a Special Agricultural Homestead Program when property owners do not live on their farm. There are numerous requirements for this program, please see this fact sheet or contact our office for more information.
Agricultural Relative Homesteads
Agricultural property that is occupied and used for the purposes of a homestead by a qualifying relative of the owner of the property may be given an agricultural relative homestead on the house, garage, farm buildings, other structures, agricultural land, and contiguous rural vacant land under the same ownership.
For agricultural property, the relatives that qualify for homestead designation include the following (by blood or by marriage):
Such property that is occupied and used for the purposes of a homestead by a qualifying relative of the owner is a homestead to the same extent as the homestead that would be provided if the related owner occupied the property, providing that all of the following criteria are met:
•the owner is a Minnesota resident;
• neither the owner nor his/her spouse receives another agricultural homestead in Minnesota;
• the owner of the agricultural property is limited to only one agricultural homestead per family.
If all of the requirements for an agricultural relative homestead are not met, the house, garage, and first acre of a residence that is located on agricultural land may be eligible for a residential relative homestead if those requirements are satisfied.
Neither the qualifying relative nor the owner of the property may claim a property tax refund for a homestead occupied by a relative unless the property is owned jointly and one of the joint owners occupies the property as his or her primary residence.
Neither the owner nor the qualifying relative may claim another agricultural homestead in Minnesota. This is limited to one agricultural homestead per family.
Applying for a Homestead
It is the owner’s responsibility to ensure a property that is eligible for homestead is receiving it. When a property transfer occurs, our office will send a reminder letter to apply for homestead. We may also send a homestead application if we are verifying that a property continues to qualify.
Our office notifies property owners of homestead status on the Notice of Valuation and Classification that is mailed each spring as well as on the Truth in Taxation form mailed in the fall.
If you would like to apply for homestead, please complete the appropriate form and mail it to us or bring it to our department. If you have any questions on which form to complete, contact us at (651)565-3669. Homestead applications are due by December 15 of the year of the assessment, but occupancy and ownership must be in place by December 1 of the assessment year.
These applications are for Special Agricultural Homesteads where the applicant farms the land and lives within four cities or townships.
Relatives Residing on a Residential Property
There are instances where certain relatives can live in a property and qualify for homestead. For residential property, these relatives include the following (by blood or by marriage):
There are other special programs associated with homestead property, including a homestead for owners and occupants who are blind or permanently disabled, and a homestead for qualifying disabled veterans.
Questions and Concerns
Questions for the assessor may be directed to (651) 565-3669.