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Most renters will no longer file a separate Property Tax Refund Return

Starting this upcoming tax filing season, renters eligible for a property tax refund will now claim the new Renter’s Credit on their Minnesota Individual Income Tax return. To claim the Renter’s Credit, renters must file a state income tax return (Form M1). For most renters claiming a property tax refund, this means they will no longer file a separate Property Tax Refund return and will not receive a separate refund later in the year. The Renter’s Credit will be part of their income tax refund amount, be applied to the amount owed on their income tax return or be applied to other debts referred to the Minnesota Department of Revenue.

This change does not affect homeowners. Homeowners will continue to use Form M1PR to file a Property Tax Refund return to receive the Homestead Credit Refund. Homeowners may be able to file for free using our Property Tax Refund Online Filing System.

“Having the Renter’s Credit on the state income tax form will simplify filing for the around 300,000 renters who claim a property tax refund each year,” said Revenue Commissioner Paul Marquart. “Renters will no longer have to file a separate return and wait until August or September to get their refund.”

What do renters need to do?

When filing their tax year 2024 taxes in 2025, renters will use the new Schedule M1RENT, Renter’s Credit, along with Schedule M1REF, Refundable Credits, when they file with their individual income tax return to receive the Renter’s Credit. Renters should include their Certificate of Rent Paid document they receive from their property owner or managing agent when filing.

How to file?

When you file your taxes in 2025, choose electronic filing. Using electronic software is easy, convenient, and secure. Electronic filing also ensures that you have the most up-to-date forms and instructions when you file. A list of certified electronic software providers, including free options, will be available on the Revenue website before the opening of filing season. These tax software providers will have the updated Renter’s Credit schedules included.

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