Senior Citizens’ Property Tax Deferral Program
Per the Minnesota Department of Revenue:
- You must be 65 or older in the year you apply (or, if married, one spouse 65 or older and the other at least 62).
- Total household income of $96,000 or less.
- You must have owned and lived in the home for the last 5 years, with homestead status.
- Apply by November 1 to defer taxes payable the following year.
- The deferred amount is a loan from the state with a lien on the home; it's repaid with interest, and payment is due within 90 days if the home is sold or the homeowner dies.
When you sell, the deferred taxes are paid off at closing like any other lien, so plan for it in your numbers.
Homestead Credit Refund (property tax refund)
Minnesota homeowners may get back part of their property taxes with Form M1PR. For the 2025 refund (filed in 2026), household income must be under $142,490 and you must have owned and lived in the home on January 2, 2026, per the Department of Revenue's M1PR instructions. A separate Special Refund, for homeowners whose net property tax rose sharply, has no income limit.
Before you sell
If you're on the deferral program, ask the Department of Revenue for the payoff so we can include it in your net sheet. Every situation is different: confirm the details with your CPA or tax preparer before you sell.