Minnesota Renters Credit: Get Up to $2,500 Back on Property Taxes Paid Through Rent

If you rent your home in Minnesota, you’re paying property taxes even though you don’t own the property—they’re built into your rent. Minnesota’s Renter’s Credit recognizes this and gives you money back. Depending on your rent and household income, you could get hundreds or even thousands of dollars returned to you each year.

This isn’t a small benefit. The average refund is around $700, but many renters receive $1,000 to $2,500 or more. For households on tight budgets, this can cover a month or two of rent, pay down debt, or provide needed emergency savings. And unlike some tax credits that phase out quickly, Minnesota’s Renter’s Credit reaches fairly high up the income scale—households earning close to $80,000 can still qualify depending on circumstances.

The program changed significantly starting in 2024. Previously, renters filed a separate form (M1PR) specifically for the property tax refund, with its own August deadline. Now, the credit is integrated directly into your Minnesota income tax return. You claim it when you file your state taxes, and it’s processed alongside your regular tax refund. This makes it simpler in some ways—one filing instead of two—but it also means you need to claim it on your tax return or you’ll miss out.

Many eligible renters don’t claim this credit. Some don’t know it exists. Others think it’s too complicated or assume they won’t qualify. But if you rented a home in Minnesota for even part of the year and your income falls within the limits, you should claim it. The process is straightforward once you understand what’s required.

Key Details at a Glance

What This Credit Actually Pays For

Your rent includes more than just payment for your housing—a portion covers the property taxes your landlord pays on the building. In Minnesota, landlords are required to certify how much of your rent went toward property taxes, and the state gives you credit for that amount.

The calculation assumes that approximately 17-23% of your rent (depending on your specific situation) goes toward property taxes. So if you paid $12,000 in rent during the year, the state considers roughly $2,000-$2,500 of that as property tax you effectively paid. The Renter’s Credit returns a portion of those taxes based on your income level.

The credit is refundable, which is crucial. This means even if you owe no income tax or already got everything back, you still receive the credit as a cash refund. It’s real money returned to you, not just a reduction in tax owed.

##Who Qualifies for the Renter’s Credit

The eligibility requirements are more generous than many people expect.

Residency: You must have rented property in Minnesota as your primary residence for at least part of the year. Even if you only rented for a few months before buying a home or moving out of state, you can claim the credit for the portion of the year you rented.

Income Limits: Your household income must be under the annual threshold, which is adjusted each year for inflation. For 2024, the limit is approximately $79,000 for households without dependents. Households with dependents may qualify with slightly higher incomes in some circumstances. The credit amount gradually phases down as income increases, so even those near the upper limit can receive some benefit.

Property Type: Almost any type of rental housing qualifies. This includes apartments, single-family rental homes, duplexes, mobile homes (where you rent the lot or the home itself), senior housing facilities, and even some types of subsidized housing. What matters is that you paid rent on a property that’s subject to Minnesota property taxes.

Certificate of Rent Paid (CRP): Your landlord must provide you with a CRP documenting the rent you paid during the year. Minnesota law requires landlords to provide this by January 31 each year for the previous year’s rent. The CRP shows total rent paid and how much of that amount is attributed to property taxes. Without a CRP, you can’t claim the credit.

Age and Disability Considerations: The credit has special provisions for certain groups. Renters who are age 65 or older, or who have certain disabilities, may qualify for higher credit amounts or face different income thresholds. These provisions recognize that seniors and people with disabilities on fixed incomes face particular housing cost challenges.

What Doesn’t Qualify: You can’t claim the credit for rent paid on property that isn’t subject to property taxes (rare but possible in some cases), for boarding houses where meals are included as the primary service, or for institutional housing like nursing homes (though some assisted living arrangements may qualify).

Insider Tips to Maximize Your Credit

Having helped many renters navigate this credit, here’s what makes the difference between maximizing your benefit and leaving money on the table.

Get Your CRP Early and Check It: Landlords must provide your CRP by January 31, but many send them out late or not at all. Contact your landlord in mid-January to request it if you haven’t received it. Check the numbers carefully—landlords sometimes make errors on the form. If your CRP shows less rent than you actually paid (check against your records and receipts), ask your landlord to correct it. Under-reported rent means a smaller credit.

Save Every Rent Receipt: Keep copies of all rent payments throughout the year—cancelled checks, bank transfers, money order receipts, or rent payment app screenshots. If your landlord provides an incorrect CRP or fails to provide one at all, you’ll need this documentation to claim the credit. Minnesota Revenue allows you to claim the credit based on your own records in some situations where a landlord fails to provide a CRP, but you need solid proof of payment.

Claim Partial-Year Situations: If you rented for only part of the year—maybe you bought a house in June or moved to Minnesota in September—you can still claim the credit for the months you rented. Don’t skip claiming just because you weren’t a renter for the full year. Pro-rate your CRP and claim what you paid.

Understand Household Income Carefully: Household income includes wages, self-employment income, Social Security benefits, unemployment, interest, dividends, rental income, and other sources for everyone who lived with you. But it doesn’t include things like food assistance (SNAP), energy assistance, or SSI payments. Calculate carefully to see if you qualify—you might be under the threshold even if your gross income seems high.

Consider Filing Even with Low Income: Some renters with very low income assume they don’t benefit from filing taxes because they owe nothing and get nothing back. But the Renter’s Credit is refundable—you get the money even if you have no tax liability. File your Minnesota return to claim it.

Use Free Filing Resources: If your income is under about $73,000, you qualify for free tax preparation through the IRS VITA (Volunteer Income Tax Assistance) program or AARP Tax-Aide. These programs can help you file your Minnesota return correctly and claim the Renter’s Credit. This is especially valuable if you’re intimidated by tax forms.

File Before the Deadline: Starting in 2024, the Renter’s Credit follows the income tax deadline, typically April 15. Unlike the old system which had an August deadline with extensions into the following year, you now need to file by the tax deadline to claim the current year’s credit. Late claims may be accepted in some circumstances, but don’t count on it—file on time.

How to Claim the Credit

The process is different than it was before 2024, so even if you claimed the old Property Tax Refund, pay attention to the new procedure.

Step 1: Gather Your CRP: Request and obtain your Certificate of Rent Paid from your landlord for the previous year. This should arrive by January 31, but contact your landlord early in January to make sure it’s coming. The CRP will show your total rent paid and the portion attributed to property taxes.

Step 2: Prepare Your Minnesota Tax Return: You’ll file Form M1 (Minnesota Individual Income Tax) even if your income is low enough that you’re not required to file. Many free filing options are available through the Minnesota Department of Revenue website, tax preparation software that includes state returns, or free volunteer tax preparation sites.

Step 3: Complete Schedule M1PR: This is the worksheet that calculates your Renter’s Credit. It’s included as part of your Minnesota tax return filing. You’ll enter information from your CRP, your household income, and other required details. The schedule calculates your credit amount based on the formula that considers your rent and income level.

Step 4: Attach Your CRP: You must include a copy of your CRP with your tax return. If filing electronically, most software will prompt you to upload an image of the CRP. If filing on paper, attach a copy of the CRP to your return. Don’t send the original—keep that for your records.

Step 5: File Your Return: Submit your Minnesota tax return by the deadline (typically April 15, with automatic extensions to October 15 available). If you’re getting a refund that includes the Renter’s Credit, choose direct deposit to receive your money faster—usually within 2-3 weeks for electronic filers versus 8-12 weeks for paper returns.

Step 6: Track Your Refund: Use Minnesota’s “Where’s My Refund?” tool on the Department of Revenue website to check your refund status. You’ll need your Social Security number and the exact refund amount you expect.

Special Situations and Common Questions

What if my landlord won’t provide a CRP? Minnesota law requires landlords to provide the CRP. If yours refuses or repeatedly fails to send it despite your requests, contact the Minnesota Department of Revenue at 651-296-3781 or 1-800-652-9094. They can help you obtain the form or advise you on claiming the credit using your own rent records.

Can I claim the credit if I live with roommates? Yes, but only for your share of the rent. If you and two roommates split rent equally and each pay $500/month, your CRP should reflect $6,000 for the year ($500 x 12 months), not the full apartment rent of $18,000. Make sure your landlord issues separate CRPs for each tenant reflecting each person’s actual payment.

What if I moved during the year and had multiple rental addresses? You can claim credit for rent paid at all Minnesota addresses where you lived during the year. Obtain a CRP from each landlord and include both on your Schedule M1PR. Add the rent amounts together for your total eligible rent.

Can I claim this credit and also claim the homestead credit if I bought a house mid-year? No, you must choose one or the other for any given property tax year. If you rented for 8 months and owned for 4 months, you’d typically claim the Renter’s Credit since that’s where you had more time, but run the numbers both ways to see which gives you a larger benefit.

What if my income was just over the limit? The credit phases out gradually, so even if your income is slightly above the threshold, you might still receive a small credit. File the return and complete the Schedule M1PR to see—you won’t know for sure without calculating it.

Does receiving rent assistance or living in subsidized housing affect the credit? In most cases, no. If you pay rent (even reduced rent through a subsidy program) on property subject to property taxes and your landlord provides a CRP, you can claim the credit. The credit is based on the actual rent you paid, which may be lower due to subsidies, but you’re still eligible.

Can nonresidents claim the credit? No, you must be a Minnesota resident for tax purposes. However, part-year residents who rented in Minnesota during the portion of the year they were residents can claim the credit for that period.

What if I made a mistake on a previous year’s return? For 2023 and earlier years when the old system was in place, you can still file an amended property tax refund return (Form M1PRX) to correct errors. For 2024 and later, you’d amend your Minnesota income tax return (Form M1X) to correct the Renter’s Credit.

Common Mistakes That Cost Renters Money

These errors result in smaller refunds or rejected claims:

Not Claiming the Credit: The most common mistake is simply not filing or not including the Renter’s Credit on your return. Many low-income renters don’t realize they should file a tax return even if they had no income or their income was very low. File to get the credit—it’s free money you’ve already paid.

Missing or Incorrect CRP: Filing without attaching your CRP will delay or prevent your credit. Make sure you include it. Also, verify the numbers on your CRP match your records. Landlord errors are surprisingly common, and an incorrect CRP means a wrong credit calculation.

Reporting Wrong Household Income: Household income includes everyone who lived with you, not just people on the lease or related to you. If your adult child lived with you and worked, their income counts. If your boyfriend or girlfriend lived with you, their income counts. Report complete household income or your credit calculation will be wrong (and if Minnesota discovers the error later, you may have to pay back excess credit).

Not Keeping Records: If there’s ever a question about your claim, you’ll need to prove the rent you paid. Keep copies of your CRP, rent receipts, and lease agreements for at least four years. Many renters throw these away and then can’t substantiate their claim if questioned.

Missing the Deadline: Under the old system, you had over a year to file. Under the new system starting in 2024, you must file by the tax deadline. Late filing could mean losing the credit entirely, so don’t procrastinate.

##Frequently Asked Questions

How long does it take to get the refund? If you file electronically with direct deposit, expect your refund (including the Renter’s Credit) within 2-3 weeks. Paper returns take much longer, typically 8-12 weeks or more. File early, file electronically, and use direct deposit for fastest processing.

Can I claim this if I paid rent to a family member? Yes, as long as it was a legitimate rental arrangement for a property subject to property taxes and your family-member landlord provides a proper CRP. Informal arrangements where you just “help out with expenses” don’t qualify—there needs to be a real landlord-tenant relationship.

What if I’m behind on my rent? You claim credit for rent actually paid during the calendar year, not rent owed. If your lease says $1,000/month but you only paid $8,000 total because you fell behind, your CRP should reflect $8,000, not $12,000. Only claim credit for amounts you actually paid.

Does claiming this credit affect other benefits? Generally no. The Renter’s Credit is a state tax refund, and tax refunds typically don’t count as income for purposes of determining eligibility for programs like SNAP, Medical Assistance, or housing subsidies. However, any refund money you save beyond a certain threshold might count as an asset for means-tested programs, so spend or plan carefully if you’re receiving other benefits.

Can I split the credit with my spouse if we file separately? If you’re married and lived together, you typically must file jointly to claim the Renter’s Credit. There are exceptions for certain situations involving separation or spousal abandonment—consult a tax professional if you need to file separately.

What if I lived in Minnesota for only part of the year? You can claim the credit for the months you were a Minnesota resident and paid rent in Minnesota. If you moved to Minnesota in June and rented for 7 months, claim credit for those 7 months of rent. Calculate accordingly on Schedule M1PR.

Will claiming this credit trigger an audit? Claiming legitimate credits you’re entitled to won’t trigger an audit. However, Minnesota Revenue does verify CRPs and may contact you if there are discrepancies between what you claimed and what your landlord reported. As long as your claim is accurate and you have documentation, you have nothing to worry about.

How to Get Started

Ready to claim your Renter’s Credit? Here’s your action plan:

First, gather your documentation. Locate your Certificate of Rent Paid from your landlord (or request it if you haven’t received it). Collect your W-2s, 1099s, and any other income documentation. Have your Social Security number and information for everyone in your household.

Second, visit the Minnesota Department of Revenue website at https://www.revenue.state.mn.us/renters-property-tax-refund for detailed information about the Renter’s Credit, income limits, and filing instructions.

Third, choose your filing method. If your income is under $73,000, consider using free tax preparation assistance through VITA or AARP Tax-Aide. You can also use commercial tax software that includes Minnesota state returns, or file directly through Minnesota’s free online filing options.

Fourth, complete your Minnesota income tax return (Form M1) and include Schedule M1PR to claim the Renter’s Credit. Attach your Certificate of Rent Paid.

Fifth, file your return by the deadline (typically April 15, with extensions available). Choose direct deposit for fastest refund processing.

For help with questions or problems, contact the Minnesota Department of Revenue:

• Main line: 651-296-3781 or 1-800-652-9094
• Refund status: 651-296-4444 or 1-800-657-3676

Don’t leave this money on the table. If you rented in Minnesota last year, claim your credit when you file your taxes. For many renters, it’s one of the largest refunds they’ll receive all year.