Qualifying as a HomesteadHomesteads may apply to both 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 apply 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.
Tax ReductionReceiving 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 submit your application, your homestead will remain until a change of deedholder or ownership of the property is recorded 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 (507) 437-9440 or send an email.
Agricultural HomesteadsThere are different requirements to receive homestead for agricultural land. Please contact our office at (507) 437-9440 or by email 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 contact our office for more information.
Applying as a HomesteadIt is the owner’s responsibility to ensure a property that is eligible for homestead is receiving it. When a property transfer occurs, our office may send a reminder to apply for homestead. We may also send a homestead application if we are verifying that a property continues to qualify. Failing to return these applications may result in a loss of homestead.
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 (507) 437-9440 or by email. Homestead applications are due by December 31 of the year of the assessment, but occupancy and ownership must be in place by December 1 of the assessment year.
Relatives Residing in the PropertyThere are instances where certain relatives can live in a property and qualify for homestead. For residential and agricultural property, these relatives include the following (by blood or by marriage):