Key Takeaways
- Review your home’s assessed value annually and appeal if needed.
- Apply for the Homestead Market Value Exclusion if eligible.
- Explore refunds and deferrals offered by the Minnesota Department of Revenue.
- Seniors, disabled veterans, and farmers may qualify for special reductions.
- Work with mortgage professionals who understand how taxes affect your full financial picture.
FAQs: How to Lower Property Taxes in MN
Lowering your property taxes in Minnesota isn’t just a wish—it’s possible with the right information and smart action. Homeowners across the state, especially in growing areas like Maple Grove, are looking for legal ways to cut down their annual tax bills.
The good news? Minnesota offers several programs and exemptions that may apply to you.
Below, First Class Mortgage breaks down the most frequently asked questions about how to lower property taxes in MN and how homeowners can take advantage of available resources.
What Factors Determine My Property Tax in Minnesota?
Your property taxes are based on:
- The market value of your home as assessed by your local assessor
- Your property classification (homestead, rental, commercial, etc.)
- Local tax rates set by cities, counties, school districts, and other authorities
In simple terms: the higher your home’s assessed value and the more taxing jurisdictions you’re under, the higher your tax bill.
Tip: Request a copy of your property’s assessment annually. If the value seems too high, you may be able to appeal.
Need mortgage guidance? Contact First Class Mortgage today for a custom evaluation of how your property taxes impact your homeownership plan.
Can I Appeal My Property Tax Assessment?
Yes. If you believe your home’s assessed value is too high, you can appeal.
Here’s how to appeal in Minnesota:
- Start with your local assessor. Ask for a review and explanation.
- If unresolved, file a formal appeal through your city or county board of appeal and equalization.
- Document your case. Use recent comparable sales, property condition, or appraisal data.
The appeals process usually opens in the spring and must follow specific deadlines.
Homeowners tip: Success depends on prep. Even a 5% reduction in value could lead to real annual savings.
What Is the Homestead Exclusion and How Can It Help?
The Homestead Market Value Exclusion lowers your taxable home value if the property is your primary residence.
Eligibility requirements:
- You must own and occupy the home on or before December 1 of the assessment year.
- You must apply through your county assessor (once per property, unless ownership changes).
For qualifying homes, a portion of your home’s value is excluded from taxation—leading to lower property taxes year after year.
Not sure if you’re already enrolled? Contact your county or First Class Mortgage—we can help guide you through it.
Are There Property Tax Refunds for Homeowners in MN?
Yes, the Minnesota Property Tax Refund (PTR) is available for:
- Regular homeowners (based on income and taxes paid)
- Senior and disabled homeowners (via the Special Refund)
To qualify, you must file Form M1PR with the Minnesota Department of Revenue—usually due in August. The refund can range from a few hundred to several thousand dollars.
Pro tip: Even if you’ve paid your taxes in full, you may be eligible for a refund based on your household income.
Are There Senior or Veteran Property Tax Benefits?
Absolutely. Minnesota offers targeted relief for:
- Seniors (65+) with limited income through the Senior Citizen Property Tax Deferral
- Disabled Veterans with a VA-certified disability of 70% or more via the Veterans Exclusion Program
These programs reduce or defer taxes on qualifying properties.
Important: Application deadlines apply. The earlier you inquire, the sooner you’ll see potential savings.
Does Remodeling Affect My Property Taxes?
It can.
Adding livable space, finishing a basement, or building a new garage may increase your home’s assessed value—leading to higher property taxes.
However, certain improvements that increase energy efficiency or accessibility (such as ramps or widened doors) may not be taxed, depending on local ordinances.
Before you renovate: Reach out to your county assessor or a trusted mortgage advisor to understand the possible impact.
Can I Get a Tax Break for Agricultural or Rural Land?
Yes. Minnesota provides tax classifications and credits for:
- Agricultural Homesteads
- Green Acres (Deferred Taxes on Agricultural Use)
- Open Space Preservation
If your property includes land used for farming or conservation, you may qualify for reduced tax rates or deferred increases in assessed value.
How Often Are Property Taxes Reassessed in MN?
Properties are reassessed annually in Minnesota, though not all result in value changes.
Counties use mass appraisal techniques, market data, and neighborhood trends to determine value. Homeowners receive a valuation notice each spring.
Keep this in mind when reviewing your tax bill—staying informed is the first step to protecting your wallet.
Should I Work With a Mortgage Professional to Plan for Property Taxes?
Yes. A mortgage expert can:
- Help you understand how property taxes affect your monthly payment
- Show you how escrow works for tax collection
- Assist in planning for expected increases
- Connect you with available homeowner savings programs
At First Class Mortgage, we don’t just help you get into the right home—we help you stay there comfortably, with smart strategies to manage taxes and expenses.
Take control of your homeownership costs with First Class Mortgage.
Have questions about how your property taxes fit into your mortgage plan?
Call (763) 416-6789 or schedule a call with our Maple Grove team for personalized guidance today.
First Class Mortgage
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