Big Change Coming to Minnesota Renters in 2025

If you're a renter here in the state of Minnesota, there's a new change coming next year that could affect you and your tax refund.

Minnesota may be known for our 10,000 lakes, but it turns out a lot of people here are making waves in the rental market instead of settling down with a mortgage. From urban lofts to cozy apartments, or stand-alone homes, the number of renters in the North Star State might surprise you.

According to this story from Eviction Lab, there are currently just under 616,000 renter households here in the Bold North, paying a typical rent of $1,113 per month. And starting next tax season, the Minnesota Department of Revenue (MDR) just announced a change that *should* make finances easier for a good portion of those renters.

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This new change involves renters who are currently eligible for a property tax refund. MDR said that instead of filing a separate Property Tax Refund return and then receiving a separate refund later in the year, starting in 2025, eligible renters will now claim the new Renter’s Credit directly on their Minnesota Individual Income Tax return.

The Minnesota Renters Credit is a refundable credit on an income tax return. MDR says you're eligible to claim that credit if:

• You have a valid Social Security Number or Individual Taxpayer Identification Number
• You must be a full-year or part-year Minnesota resident
• You lived in and paid rent on a Minnesota building where the owner was assessed property tax or made payments in lieu of property tax
• Your household income is below $75,390 
• You cannot be claimed as a dependent on someone else’s tax return

Starting with the 2025 tax filing season, MDR says for most renters claiming a property tax refund, the Renter’s Credit will now 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.

So what do you have to do to claim this new credit? MDR explains:

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.

MDR also noted that this new change only applies to eligible renters, and does not apply to Minnesota homeowners, however. You can get more information about the new credit from HERE.

And if you need a break from all this talk of renters credits and taxes, how about taking a walk through the most expensive home in the entire state of Minnesota? Keep scrolling to check out the pics!

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