Politics
Minnesota Expands Property Tax Refunds for 85,000 Minneapolis Households
The updated state program is projected to deliver larger annual refunds to an estimated 85,000 Minneapolis property owners and renters when payments begin in October.
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How we reported this
The Minnesota Legislature approved an expansion of the Property Tax Refund program during its 2025 session, raising income eligibility thresholds and increasing maximum refund amounts for both homeowners and renters. The changes apply statewide but affect Minneapolis residents through the city's high share of multifamily housing and property tax assessments. Local households qualify based on 2025 income filings submitted to the Minnesota Department of Revenue.
Property taxes and rent represent the largest monthly costs for most Minneapolis residents, with city data showing median homeowner tax bills near $4,200 in 2025. The refund expansion responds to sustained increases in assessed values across Hennepin County that have outpaced wage growth in several neighborhoods. State budget documents released in June allocate an additional $62 million for the program in fiscal year 2027.
Direct effects on Minneapolis residents
A single Minneapolis renter earning $48,000 could receive a refund of $780 instead of the prior maximum of $520, according to the legislation's formulas. Homeowners in the 55407 and 55408 zip codes, where assessments rose 9 percent last year, stand to see net tax reductions after the credit is applied. Local advocates note that many recipients use the one-time payment for utility arrears or grocery costs during winter months.
The Minnesota Department of Revenue projects that 42 percent of Minneapolis filers will qualify under the new brackets, compared with 31 percent under previous rules. Refunds are issued as checks or direct deposits and do not require separate applications beyond the standard state tax return. City officials have scheduled outreach sessions at neighborhood libraries in August to assist residents with filing.
Next steps for implementation
Payments under the expanded program are scheduled to begin October 15, 2026, following final certification of 2025 tax returns. The Department of Revenue will mail notices to eligible filers by September 1. Analysts at the state agency continue to process returns filed through the July 15 deadline, with updates posted weekly on the department website.