North Dakota Homestead Property Tax Credit

This page is for North Dakota residents age 65 or older, and for people with a permanent and total disability, who want to reduce property taxes or recover part of high rent through a state tax credit program. North Dakota separates the benefit into two related tracks:

• Homestead Property Tax Credit: reduces the taxable value of your home property for tax purposes.
• Renter’s Refund: issues a refund for a portion of rent that effectively functions like property-tax relief.

Both tracks use the same age/disability criteria and the same $70,000 income ceiling, but their application flow and timing differ. If you are filing for one, you should understand both so you can decide quickly whether to submit one application, both in separate years, and how each affects your taxes. The program exists to prevent seniors and disabled North Dakotans from being pushed out of housing by tax pressure.

At-a-glance table

What this opportunity is, in plain language

This is not a cash payment program in the same way a one-time benefit is. For homeowners, North Dakota lowers the amount of property value used to calculate your bill. The reduction is often smaller than your full property taxes because your taxes are based on multiple layers of assessments and rates, but it still lowers what you owe.

For renters, the state calculates a “rent that looks like property tax” amount and refunds the portion that is excessive relative to your income. In practical terms, this can make monthly housing easier to absorb, especially when income is fixed.

The law allows:

• A homeowner or renter benefit for older adults and people with permanent and total disability.
• The same income ceiling of $70,000 for both.
• Medical expenses to reduce income, so documented out-of-pocket medical costs can increase eligibility.

Importantly, the official department material and current statute do not require an asset limit for these programs. If you hear an agent talk about converting assets into income for this credit, treat that as a warning sign and verify against the current official application and instructions before reporting it in your filing.

Who should realistically apply?

This is worth your time if all of these are true:

• You are age-eligible or officially permanently and totally disabled.
• Your household income is close to or below $70,000, and much of your budget is tied up in housing.
• You can collect the documents your county or the Tax Commissioner needs, and you are willing to answer questions about income and medical expenses.
• You have a North Dakota residence (homeowner or rental unit) and are trying to protect that housing stability.

It is probably not worth applying if:

• Your income is substantially above $70,000.
• You cannot show ownership or qualifying occupancy for a homestead application.
• You rent in a property exempt from state property tax where rent is not subject to this framework.
• You are not willing to provide required tax and income records.

This guidance helps you decide quickly and avoid filing for something that will be denied due to a missing requirement.

Program overview and how the two tracks fit together

North Dakota maintains both homeowner and renter relief through overlapping but not identical rules:

• The homeowner track reduces taxable value through your local assessor’s process.
• The renter track is handled directly by the Office of State Tax Commissioner and ends with a mailed check.
• Law and official program language repeatedly describe these as related tracks, and both are for the same target population.

You usually choose whichever role reflects your current housing status for that tax year:

• File homeowner form if you own and occupy a qualifying homestead in ND.
• File renter form if you rent a qualifying dwelling or mobile home lot.

If your circumstances are mixed (for example, you own one property and rent another), only the benefit that matches your actual qualifying housing situation for your residence is allowed for that tax year. In practice, this is not a dual-payment year strategy.

Eligibility: what is verified

Shared requirements for both tracks

1. Age/disability status
   • Age 65 or older, or permanent and total disability.
   • Disability must be verified by physician certificate or a valid disability determination from SSA or authorized state/federal agency.
2. Income threshold
   • Total household income for the relevant prior year must be $70,000 or less.
   • This includes your income plus spouse/dependent income for the same household context.
3. Household structure
   • If a married couple lives together, the law says only one exemption/refund is available between them.
4. Single benefit for one household unit
   • Usually one spouse applies; co-owners who are not spouses/dependents may apply for prorated benefit shares tied to ownership.
5. Tax-related residency conditions
   • Homeowners must have qualifying occupancy/ownership interest.
   • Renters must be in a taxable rental arrangement and submit net rent details correctly.

Homeowner-specific eligibility

For homestead:

• The property must be your homestead.
• The homestead must qualify as taxable real property that the law treats under the credit framework.
• If the property is a farm structure exempt from tax, this credit does not apply.
• A person temporarily confined to nursing home/hospital care can still qualify in certain circumstances as long as their home is not rented while they are absent.
• There is no asset limit stated in current official channels for this specific program.

Renter-specific eligibility

For renter refund:

• You must be a renter or occupy a mobile home lot covered by rent paid by you.
• Renter refunds are unavailable for some exempt living arrangements (for example, many nursing home arrangements where the unit is exempt and no in-lieu property tax payment is made).
• You must separate utilities, furniture, and included amenities from rent if they were bundled into your monthly amount.
• Heat, water, lights, phone, and furnished items are not treated as property-tax-related rent.

Important caution

The program is sensitive to income year definitions. The homeowner PDF form for one filing year clearly says it uses the prior calendar year’s income and medical expenses (for example, 2026 application uses 2025 income). Before filing, always confirm which income year the current form expects.

How the benefit is calculated

Homeowner reduction schedule

The reduction is based on household income:

1. If income is $40,000 or below, the homestead taxable value reduction can be up to the full eligible cap (up to $9,000 in that schedule).
2. If income is between $40,001 and $70,000, the reduction is lower, effectively a 50% tier up to half of the maximum (often described as $4,500).

What this means on a tax bill:

• It is a reduction in assessed taxable value, not always a direct one-for-one tax dollar reduction.
• Actual dollar savings depend on your local mill rates and assessment profile.

You can think of it as a reduction first applied locally, then tax math follows local tax structures.

Renter refund formula

The renter formula is:
if 20% of annual net rent exceeds 4% of income after allowed deductions, the excess may be refunded, up to the program max.

Key points:

• Subtract utility/furniture/other non-qualifying items from rent if they were included.
• Use household income used in your application.
• The law also applies a minimum if your calculation is positive but below $5: a small minimum can still be issued in some cases.
• Max refund currently documented as $600.

Example calculations to make it concrete

Example 1: Homeowner with lower income

Lena, age 71, reports $32,000 combined income for the relevant year and owns her homestead. This is below the $40,000 threshold, so she is in the top reduction bracket. Her local tax bill reflects the reduced taxable value after county processing.

Example 2: Homeowner near upper threshold

Tom and Joan, both retired, report combined income of $58,000. They are eligible, but the formula applies the reduced tier. Their annual paperwork is accepted, and they receive a partial reduction rather than the full $9,000 maximum.

Example 3: Renter with fixed income

Ana, age 68, has $35,000 adjusted income used in the renter application and a documented net annual rent of $9,600.
20% of rent is $1,920.
4% of income is $1,400.
Difference is $520.
If this is below the max cap, that difference is the refund base.

These examples align with how North Dakota presents the same formula on its official pages.

Timeline and deadlines to keep straight

You need to avoid missing filing windows. The deadline handling is year-specific:

• Homestead filing with local assessor/county director is listed as April 1 on the department’s official page.
• Renter filing is listed as postmarked by May 31 on the department site, which aligns with the statute language of filing before June 1.
• The application year can change each cycle, so always confirm the form year and filing year on the tax site before submitting.
• The homestead process can vary by county in terms of intake logistics, but the statutory and department date anchors remain.

Practical planning calendar

Application process: homeowner

Use the department’s homestead page for current links.

1. Download the current-year homestead form from the ND tax website.
2. Confirm your filing year and income year (for example, one form year uses prior year income).
3. Fill in income sections from all sources:
   • Social Security and pensions
   • Wages
   • Interest/dividends
   • Capital gains or business income
   • Dependents’ income if applicable
4. Enter medical expenses that are unreimbursed to calculate net income.
5. Confirm ownership and property details:
   • Address, parcel, assessed property details
   • Ownership percentage if co-owned
6. Attach required proof:
   • Disability proof if using disability path
   • Tax identity and signatures as required
7. Submit to local assessor or county director of tax equalization by the applicable filing date.
8. Keep a copy and receipt.

County processing adds the reduction after verification and certifies amounts through the state system for reimbursement.

Application process: renter

1. Download the Renter’s Refund tax application from the ND Tax site.
2. Use 2025 (or current-year) income and rent year as specified on the form.
3. Keep these details ready:
   • Annual rent paid
   • Utilities/furniture adjustments from rent
   • Social security, wage, pension, interest, and other income sources
   • Medical expenses to reduce net income
4. Complete the form completely and check arithmetic.
5. Attach the disability proof if applicable.
6. Mail to the Office of State Tax Commissioner before the postmark deadline.

Renter refunds are typically sent by check after approval.

Required materials checklist

• Completed correct-year application for your track.
• Proof of age/disability if relevant.
• SSN and identifying details.
• Complete household income summary from the relevant prior year.
• Medical expense records (unreimbursed, out-of-pocket, same definitions as ND tax instructions).
• Homestead evidence:
  • Property tax identifier/property description
  • Ownership details if homeowner
  • Lease terms and rent structure if renter
• Spouse/dependent income details if filing as a household.
• Contact info for preparers and landlord (for renters).

You do not need to provide every possible supporting document immediately if your filing form does not ask for it at that point, but having it ready avoids denial delays.

Common mistakes and how to fix them

1. Submitting too late
   • Filing after deadlines is the highest reason people miss out. Use an early calendar cutoff and send by postmark, not only by date written on form.
2. Including bundled utilities/furnishings as full rent
   • For renters, heat/water/lights/furniture may need subtraction before calculation.
3. Mixing tax and calendar year
   • The program frequently uses prior year income. A common mistake is using current year income before a full year ends.
4. Forgetting spouse/dependent inclusion
   • Spouse and dependent income is included in eligibility calculations.
5. Ignoring farm structure and property exclusions
   • A homestead that is a farm structure exempt from tax is excluded.
6. Treating this as a refundable income tax credit
   • The homeowner relief is a property tax reduction first; the renter relief is a property-related refund processed separately.
7. Applying as both tracks for same year where not allowed
   • Do not over-pilot by filing conflicting claims for one household position.

Is it worth your time? A decision framework

If you want a practical go/no-go test, use this in order:

• Affordability test: Is your housing cost a meaningful part of your budget? If yes, likely worth filing.
• Income test: Is your documented prior-year household income under $70,000? If no, likely skip for now.
• Complexity test: Can you complete forms without major guesswork? If uncertain, use the county contact before filing.
• Timing test: Can you hit deadlines comfortably? If not, wait until you can gather correct-year records.
• Risk test: If a small error might trigger denial, file with help from a local office first.

If you pass 3 out of 4 checks, filing is usually worth the effort.

How to prepare before you start (recommended)

Start early and save everything in one folder:

• One folder for each year.
• Signed disability proof if applicable.
• A running document of unreimbursed medical expenses.
• Income summary line-by-line with source pages.
• Lease statement and rent history.
• Home property information from tax bills.

This prevents frantic last-minute recalculations and is especially useful if you are filing from memory.

After submission: what to expect

• Homeowner: your assessor applies the reduction in the county process. Then your tax bill reflects the new taxable value.
• Renter: the Tax Commissioner mails refund by check when approved.
• Appeals: if denied, follow the department’s communication channels and request clear reason codes. Some denials can be corrected by resubmission with missing proof.
• Keep records at least a few years in case of review.

Frequently asked questions

Can a person who is temporarily in a care facility still qualify?

Yes, in certain circumstances. The statutory rule allows the homestead to remain qualifying if the person is absent due to nursing home/hospital care and the property is not rented to someone else while absent.

Is there an asset limit?

Current official ND program guidance for this credit does not describe an asset test for this opportunity in the eligibility text. It focuses on income and household status.

Can only one spouse apply?

For qualifying households with spouses or dependents, state language says one exemption/refund is typically treated within the household unit; in filing practice, usually one spouse applies.

Can I apply if I already got one of the benefits in the past?

Yes, you generally reapply annually. Prior approval can help, but it does not automatically guarantee approval each year.

Is this tied to property tax bill timing?

Homeowner relief is tied into county assessment processing. The filing year is key. Renter refunds are state-processed.

What if my income changes midyear?

Use the income year the application requests. If your income changes later, check with the local tax office before filing to avoid a mismatch.

What if I miss the deadline?

Homeowner deadlines are strict at county filing time. Renter rules mention a possible exception at the state commissioner’s discretion for good cause, but that is discretionary and not guaranteed. File early.

Official links and exact sources

• North Dakota Homestead Property Tax Credit: https://www.tax.nd.gov/homestead-property-tax-credit
• North Dakota Renter’s Refund: https://www.tax.nd.gov/renters-refund
• Renter’s Refund and Homestead Brochure: https://www.tax.nd.gov/sites/www/files/documents/property-tax/homestead-renters-refund-brochure.pdf
• North Dakota Homestead Credit Application (current-year examples shown at ND Tax site): https://www.tax.nd.gov/sites/www/files/documents/property-tax/2026-homestead-credit-application.pdf
• North Dakota Renter’s Refund Application page: https://www.tax.nd.gov/renters-refund
• Statute foundation: https://ndlegis.gov/cencode/t57c02.pdf

Final readiness checklist before you file

• Confirm you used the right form year.
• Confirm income year and included sources match state instructions.
• Confirm rent inputs exclude non-taxable utility/furniture components.
• Confirm spouse/dependent inclusion is correctly handled.
• Confirm mailing method and expected receipt.
• Confirm local assessor vs state office destination.
• Put a reminder to follow up after the filing window.

Next steps

If you qualify, the process is largely document-driven and straightforward. Your practical next move is to download the correct form year now, fill it in a rough draft, then compare each income and deduction line against your source documents before signing and sending.

This opportunity is most useful for households where fixed-income stress and housing costs are both high. Use this page as your filing plan, not just a concept sheet. If you need, apply for one benefit in a calm, document-first cycle rather than trying both tracks at once and mixing rules.