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1. What is the homestead market value exclusion?

The homestead market value exclusion is a property tax program that the Minnesota Legislature passed in 2011 to replace the homestead credit. Homestead market value exclusion effectively reduces a property’s taxable market value for a property that is occupied as a person’s primary place of residence.

2. What is the benefit of the homestead market exclusion?

The benefit of the homestead market exclusion is that it provides for lower property taxes on a property that qualifies versus one that doesn’t. View an example of the tax amount calculation.

3. How do I qualify for the homestead market value exclusion?

To qualify for the homestead market value exclusion, you must meet all of the criteria listed on the Homestead Market Value Exclusion Requirement page.

4. Is the amount of the homestead market value exclusion the same amount on all properties?

No. The homestead market value exclusion is based on a number of factors, including property market value. Generally, the market value exclusion’s affect on taxes payable declines as a property value increases. For properties valued at approximately $400,000 and higher, the homestead value exclusion does not apply. There are also different credits for disabled persons, blind persons and manufactured homes, view the application.

5. Is there anything else I should know about homestead?

Every homestead is unique. Some homesteads involve property held under a trust agreement. Other property is purchased with lender requirements that may affect the homestead classification. You are encouraged to contact the Assessing Division at 763-767-6446 with any questions you may have.

Additional information about homesteads is available by referring to Minnesota Statute Chapter 273.124. For more information, view the City Code.