Minnesota Property Tax Refund Increase: What Perfectly Balanced Clients Need to Know

Minnesota homeowners may soon see larger property tax refunds than originally expected.

The recent Minnesota property tax refund increase could result in higher refunds for qualifying homeowners across the state. While tax software providers are still implementing the state's updated guidance, many homeowners may ultimately receive more than earlier estimates suggested.

At Perfectly Balanced Tax and Accounting, we want to help clients understand what this change means and what to expect moving forward.

What Does the Minnesota Property Tax Refund Increase Mean?

The Minnesota property tax refund increase may result in larger refunds for qualifying homeowners, even if earlier estimates were lower.

Recently, the Minnesota Department of Revenue announced guidance related to a one-time increase to homeowner property tax refunds. Because software providers are still updating their systems, refund calculations may continue to change as those updates are completed.

For many homeowners, this means the final refund issued by the state could be higher than originally projected.

How Does Perfectly Balanced Handle Property Tax Refund Reviews?

Every year, Perfectly Balanced reviews property tax statements for all Minnesota resident clients to determine whether they qualify for a homeowner property tax refund.

Clients do not need to request this review.

Our team gathers available property tax information, completes the necessary calculations, and identifies who may qualify. If a refund is available, clients receive an invoice with instructions for moving forward with filing the refund claim.

This review process happens automatically each year as part of our commitment to helping clients identify available tax benefits.

Why Might My Refund Be Different Than an Earlier Estimate?

The recent Minnesota property tax refund increase is still being incorporated into many tax software systems.

As a result, refund amounts shown on invoices or estimates sent earlier this year may not match the final refund issued by the state. In many cases, homeowners may receive a larger refund than originally estimated.

At this time, Perfectly Balanced is not performing manual recalculations of refund amounts. Waiting for software updates helps ensure calculations remain accurate and consistent with state guidance.

We know some clients may be curious about what their updated refund amount could be. Right now, we simply do not have those numbers available, and we are not manually calculating revised estimates. As software systems are updated and the filing process moves forward, any additional refund amounts will be reflected in the final refund issued by the state.

What If I Did Not Receive an Invoice?

Not every homeowner qualifies for a property tax refund.

In some situations, the projected refund may have been too small to justify the filing fee. For example, if the expected refund was only slightly higher than the preparation cost, filing may not have provided a meaningful financial benefit.

However, because of the Minnesota property tax refund increase, some of those previously reviewed situations may change.

Later this summer, our team plans to revisit many of those files. If updated calculations create a meaningful benefit for the client, additional invoices and filing opportunities may be sent.

How Has This Helped Perfectly Balanced Clients?

This year alone, approximately one-third of our Minnesota clients qualified for homeowner property tax refunds.

Those qualifying clients are expected to receive nearly $80,000 in combined refunds, with an average refund of approximately $688.

Many homeowners are surprised to learn they qualify because they were unaware the program existed. That is why we review every Minnesota resident client each year and look for opportunities that might otherwise be overlooked.

What Should I Do Next?

For most clients, the answer is simple: nothing.

If you qualify for a refund, you will hear from us. If additional opportunities become available because of the Minnesota property tax refund increase, we will review those situations and reach out where appropriate.

There is no need to request revised estimates while software providers continue implementing updates. We are monitoring the situation closely and will continue following state guidance as it becomes available.

As always, our goal is to make the process simple while helping Minnesota homeowners maximize the benefits they qualify to receive through the Minnesota property tax refund increase and other available tax programs.