Understanding Homestead vs Non-Homestead in Minnesota

In the state of Minnesota statues provide for a reduction to the general property tax for certain property that is owner-occupied and must be that person’s primary place of residence. These properties fall under the homestead classification.

What criteria determines a principal residence?

The criteria that determines a principal residence includes:

  • A residential property that is owned, occupied and used for the purpose of a homestead
  • Where you are registered to vote
  • The address on your driver’s license
  • The address from which you file your income tax returns
  • Where you children attend school
  • You must be a Minnesota resident

Other Provisions of the Minnesota Homestead

  • Must I own a Douglas County home in order to claim an exemption? Yes. A renter cannot claim an exemption, nor can an optionee under an Option to Purchase contract. Only the party actually residing at the property may claim the exemption. There may be multiple people on title with the residing owner.

A life estate owner will claim a homestead exemption on the property, as well as a land contract vendee that is living at the property.

  • If I own two adjoining parcels, may I claim both parcels as homestead? According to Minnesota statues, if one parcel contains the principal residence and other a vacant adjoining lot, both may be claimed as homestead. If there is a home on the adjacent parcel that is being rented or used as a guesthouse (therefore it is not vacant), a homestead may not be claimed on this adjacent parcel.

Questions About Minnesota Homestead Provisions?

If you have any questions regarding the Mnnesota Homestead versus non-homestead, contact me, Julie Rambow and I'll gladly help answer any questions you have about this important topic.

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