New Renter’s Credit coming to Minnesota in 2025

(ABC 6 News) — The Minnesota Department of Revenue is announcing a new Renter’s Credit for renters that will be available in 2025.

Starting this upcoming tax filing season, renters eligible for a property tax refund will now claim the new Renter’s Credit on their Minnesota Individual Income Tax return.

To claim the Renter’s Credit, renters must file a state income tax return (Form M1).

For most renters claiming a property tax refund, this means they will no longer file a separate Property Tax Refund return and will not receive a separate refund later in the year. The Renter’s Credit will 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.

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.

The change will not have an effect on homeowners.

More information about the new Renter’s Credit can be found here.