Minnesota Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability

Minnesota (MN) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Minnesota property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.

All Minnesota property tax exemptions at a glance

Exemption	Who qualifies	Benefit	Typical savings
Homestead (general)	Owner-occupied primary residence	~$57,000 value reduction	$594/yr est.
Senior / Age 65+	Owner-occupied; age 65+; often income-capped	Additional reduction or freeze	$200 – $2,000/yr
Disabled veteran	Service-connected disability rating	Up to 100% exemption in many states	$1,000 – full bill
Disability (non-veteran)	Permanent total disability	Reduction + sometimes freeze	$200 – $1,500/yr
Surviving spouse	Of veteran, first responder, or senior	Continuation of decedent's exemption	Same as deceased's benefit
Agricultural / farm	Active agricultural use	Use-value assessment instead of market	30% – 80% lower bill

Estimated savings use Minnesota's effective property tax rate of 1.04% on the median home value of $305,500. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.

Homestead Market Value Exclusion (MVHE)

Approved in 2011 to replace the older Homestead Market Value Credit, the MVHE reduces the taxable base of primary residences on a sliding scale.

How the formula works

• Homes with market value $95,000 or less: exclusion equals 40% of market value (maximum $38,000 exclusion)
• Homes with market value $95,000 to $517,200: exclusion phases out at a rate of 9% per $100 of value above $95,000
• Homes valued $517,200 or more: no exclusion

Worked examples

Market value	Exclusion	Taxable market value
$75,000	$30,000 (40%)	$45,000
$95,000	$38,000 (40%, max)	$57,000
$200,000	$28,550	$171,450
$350,000	$15,000	$335,000
$517,200	$0	$517,200

Who qualifies

• Primary residence owned and occupied on January 2 of the assessment year
• Owner must be a Minnesota resident
• Homestead classification active on the property

Application

Filed once with the county assessor (form CR-H or local variant). Homestead classification continues automatically as long as the property remains your primary residence.

Senior Citizens Property Tax Deferral

Minnesota's Senior Citizens Property Tax Deferral Program caps the annual property tax a qualifying senior pays at 3% of total household income (based on the prior year's income). The state pays the remainder of the tax directly to the county as a deferral loan.

Eligibility

• Age 65+ on January 1 of the application year (or, if married, one spouse 65+ and the other at least 62)
• Household income $96,000 or less for the prior year
• Owned and lived in the home for at least 5 years
• Home has been homesteaded for at least 5 years
• No reverse mortgage, life estate, state or federal tax lien, or judgment lien on the property

How repayment works

Deferred amounts become a lien on the property. Accrue annual interest at a state-certified rate (currently approximately 3% in 2026, statutorily capped at 5%). Loan is repaid from sale proceeds or by the estate. Homeowner continues to live in the home indefinitely.

Application

File form CR-SCD with the Minnesota Department of Revenue. Approved applicants receive annual statements and the state handles payments directly to the county.

Tradeoff

The deferral is valuable for cash-constrained seniors who want to remain in their home. But the loan plus interest reduces what heirs will inherit — the home sells, proceeds first repay the deferral loan, balance goes to the estate. Low-interest (5% cap) makes this relatively painless, but heirs should understand.

Truth-in-Taxation Notices and Appealing Assessment

Truth-in-Taxation notice

By late November, every Minnesota property owner receives a "Truth-in-Taxation" notice that shows:

• Estimated market value and taxable market value
• Proposed property tax for the coming year
• Dates of public hearings for each taxing district (county, city/town, school, etc.)

Attend the hearings to object to proposed tax levies. This is about rate, not individual value assessment.

Step 1: Open Book Meeting (for valuation concerns)

Contact the local or county assessor after receiving the Valuation Notice (typically March/April). Many disputes resolve informally.

Step 2: Local Board of Appeal and Equalization

The local board (city or town) meets in April or May. Attend to contest value or classification. Filing typically informal — appear in person or send written objection.

Step 3: County Board of Appeal and Equalization

Meets in June. You must have first appealed to the local board (unless your jurisdiction uses an Open Book Meeting in lieu of local board).

Step 4: Minnesota Tax Court

File petition by April 30 of the year following the assessment year (so April 30, 2027 for the 2025 assessment, payable 2026). Two tracks:

• Small Claims Division: for disputes under $300,000 assessed value; no attorney required; $150 filing fee
• Regular Division: for larger cases; more formal procedure

Step 5: Supreme Court

Minnesota Tax Court decisions may be appealed directly to the Minnesota Supreme Court on the record.

Frequently Asked Questions

What is Minnesota's Homestead Market Value Exclusion?

The MVHE reduces the taxable base of primary residences on a sliding scale. For homes valued $95,000 or less, it excludes 40% of market value (maximum $38,000). The exclusion phases out, reaching zero for homes valued $517,200 or more. Applied automatically to homesteaded properties.

How does Minnesota's Senior Property Tax Deferral work?

Caps annual property tax at 3% of total household income for seniors age 65+ with income up to $96,000, who have owned and lived in the home at least 5 years. The state pays the remainder as a deferral loan repaid from sale proceeds or the estate. Interest capped at 5% annual (currently ~3%).

What is a Truth-in-Taxation notice in Minnesota?

A notice mailed to every Minnesota property owner in late November showing estimated market value, taxable value, proposed tax for the coming year, and dates of public hearings for each taxing district. Attend the hearings to voice concerns about proposed levies (rates) — it does not address individual assessment disputes, which go through the separate assessment appeal process.