By Sean Williams, sean.williams@house.mn.gov
Renter’s Credit
June 2024
What is the renter’s credit?
The renter’s credit is a refundable income tax credit that provides tax relief to renters whose rent and
“implicit property taxes” are high relative to their incomes. Prior to 2025, the credit was administered
separate from the income tax system, together with the homestead credit property tax refund.
Beginning with refunds paid in 2025 (tax year 2024), taxpayers will file and claim the credit as part of
their income tax returns.
How are renter’s property taxes calculated?
“Rent constituting property taxes” is assumed to equal 17 percent of rent paid. If rent constituting
property taxes exceeds a threshold percentage of income, the credit equals a percentage of the tax over
the threshold, up to a maximum amount. As income increases:
the threshold percentage increases,
the share of tax over the threshold that the taxpayer must pay increases, and
the maximum refund decreases.
Beginning with credits paid in 2025, the program will use adjusted gross income to determine eligibility,
with deductions allowed for dependents and for claimants who are over age 65 or disabled.
Property owners or managing agents are required to provide renters with a Certificate of Rent Paid
(CRP) by February 1 of each year. The CRP provides a record of the rent paid in the previous year.
What are the maximums?
For tax year 2024 credit claims paid in 2025 (based on rent paid in 2024), the maximum refund is $2,640.
Renters whose income exceeds $75,389 are not eligible for refunds.
How are claims filed?
Beginning with refunds payable in 2025 for tax year 2024, taxpayers will file and claim the credit as part
of their income tax returns. The Minnesota Department of Revenue (DOR) will pay taxpayers refunds at
the same time as any income tax refunds owed to a taxpayer.
How many renters receive refunds, and what is the total amount paid?
295,520 renters received refunds in 2022 (based on rent paid in 2021 and 2021 incomes). The average
refund was $731, and the total dollar amount of refunds paid statewide was $216.1 million.
When was the program last changed?
The 2023 tax policy and finance bill (Laws 2023, chapter 64) significantly restructured the program’s
administration. That law converted the credit from a stand-alone refund program to a refundable
income tax credit and also changed the income measure used to calculate the credit. Under prior law,
the income measure used to calculate the credit was “household income,” which included most
nontaxable income.
Renter’s Credit
How do refunds vary depending on income and property taxes?
The following table shows the credit amount for four example families (married couples without
dependents). Although the threshold percentage, copayment rates, and maximum credit amounts are
the same statewide, the estimated median rent (based on 2022 Census Bureau ACS 1-year estimates for
1 bedroom) is higher in the metro area than in Greater Minnesota. Taxpayers who are over age 65,
disabled, or have dependents are allowed a subtraction from income in determining the refund.
Married couple, both under age 65, no dependents
Example credit for claims filed in 2025,
based on rent paid in 2024 and 2024 household income
Metro Area
Greater Minnesota
Taxpayer #1 Taxpayer #2 Taxpayer #3 Taxpayer #4
1
Monthly rent, one bedroom
apartment
$1,050
$1,050
$625
$625
2
Annual rent (1 x 12 = 2)
$12,600
$12,600
$7,500
$7,500
3
Rent constituting property tax
(2 x 17% = 3)
$2,142
$2,142
$1,275
$1,275
4
Gross income
$20,000
$40,000
$20,000
$40,000
5
Deduction for dependents
0
0
0
0
6
Household income (4 - 5 = 6)
$20,000
$40,000
$20,000
$40,000
7
Statutory threshold
percentage
1.4%
2.0%
1.4%
2.0%
8
Threshold % x income
(7 x 6 = 8)
$280
$800
$280
$800
9
Property tax over threshold
(3 – 8 = 9)
$1,862
$1,342
$995
$475
10
Copay percentage
15%
30%
15%
30%
11
Taxpayer copay amount (9 x
10 = 11)
$279
$403
$149
$143
12
Remaining tax over threshold
(9 – 11 = 12)
$1,583
$939
$846
$333
13
Maximum refund allowed
$2,370
$2,180
$2,370
$2,180
14
Net property tax refund
$1,583
$939
$846
$333
Claimants can check the status of their refund online (https://www.revenue.state.mn.us/wheres-my-
refund) or by calling DOR at 651-296-4444.
Minnesota House Research Department provides nonpartisan legislative, legal, and
information services to the Minnesota House of Representatives. This document
can be made available in alternative formats.
www.house.mn.gov/hrd | 651-296-6753 | Third Floor, Centennial Office Building | St. Paul, MN 55155
