NEW ULM — New Ulm and Brown County homeowners who own and occupy their primary residence may qualify for Minnesota’s Homestead Credit Refund for their 2025 property taxes.

The Minnesota Department of Revenue administers the program, which offers two types of refunds: the regular income-based Homestead Credit Refund and the special Homestead Credit Refund for properties with large tax increases. Many local residents are receiving their tax statements this spring amid recent levy increases.

Brown County approved a 9.99% proposed tax levy increase for 2026. The City of New Ulm set its 2026 budget with a property tax component. 

“Any money that can make its way back into the taxpayers’ hand is helpful to ease the burden taxes can have on a household,” said Sarah Lanier of the Brown County Assessor’s Office.

The regular Homestead Credit Refund is available to homeowners whose property taxes represent a significant portion of their household income. 

To qualify for the 2025 taxes refund, the homeowner must have owned and occupied the home as their primary residence on Jan. 2. 

The property must be classified as a homestead with Brown County. The homeowner must have paid or arranged to pay the property taxes. Household income for 2025 must have been below $142,490.

In this context, “homestead” refers to a property that is the owner’s primary residence and has received the proper classification from the county.

A recent law change increased refunds for 2025 by nearly 15%. The Department of Revenue is updating its systems to automatically adjust previously filed claims.

The refund amount is based on net property taxes, after other credits, compared to a percentage of income.

Seniors and disabled residents may subtract additional amounts from household income.

The special Homestead Credit Refund addresses properties with large tax increases. To qualify, the homeowner must have owned and lived in the same home on Jan. 2, 2025, and Jan. 2, 2026. 

Net property taxes must have increased more than 12% and at least $100. The increase must not have been due to improvements made to the property. This refund has no income limit.

Homeowners may qualify for the regular refund, the special refund or both.

Lanier emphasized that the refund process begins with proper classification of the property. 

“The Property Tax Refund starts with obtaining that classification,” she said. “If you notice your statement says non-Homestead, please do not hesitate to reach out to the Brown County Assessor Office for a Homestead application.”

Lanier clarified that mortgage status does not matter.

“It doesn’t matter if you have a mortgage or anything like that. It’s specifically to qualify for homestead. It is specific to owner occupied homesteads not relative homesteads.”

She added, “You can’t qualify for the property tax refund if you don’t have that qualification, that classification. Some people just don’t know about the homestead classification that they can get these benefits.”

The most common reason for missing the classification is a recent property purchase. 

“Most of the time, it’s because they acquired a new property and didn’t fill out the application,” Lanier said. The assessor’s office sends applications to new owners and processes them at no charge. “That is part of our job. We are here to help the taxpayers; getting those homestead applications out, trying to make sure the people that qualify for those benefits are receiving their benefits.”

Residents file the refund using Minnesota Form M1PR. They can submit it electronically through tax software, online via the Department of Revenue or by paper. 

Use the actual property tax statement from Brown County received in March or April, not preliminary notices.

“We advise taxpayers to go to the website to locate the application and view the resources available for guidance on filling out the M1PR form,” Lanier said.

Forms and instructions are available on the Department of Revenue’s site, which provides clear guidelines for the process.

The deadline for 2025 taxes is Aug. 15, 2026. Homeowners may file up to one year late and still receive a refund. Direct deposit is available. The M1PR is filed independently from regular income tax returns.

This program has been in place for years.

“This has been a program for quite a while,” Lanier said. “It’s always good for more people to know about it so they can receive any benefits they’re entitled to.”

The county does not track local refund data.

“The county does not receive any data for how many property owners apply and qualify to receive the property tax refund,” Lanier said

Property taxes support local services such as schools, roads and public safety in New Ulm and Brown County. Eligibility and refund amounts vary by individual circumstances. Homeowners should review their tax statements and the Form M1PR instructions for details.

The United Way of the Brown County Area offers free tax preparation assistance for low- to moderate-income residents through its Volunteer Income Tax Assistance program. Appointments are available at the New Ulm Community Center, 600 N. German St. Call 507-276-3186.

For questions about homestead classification, contact the Brown County Assessor’s Office main line at 507-233-6606.

Check refund status at revenue.state.mn.us or call 651-296-3781 or 800-652-9094.