While property taxes are often a heavy burden for low-income homeowners and renters, several U.S. states offer targeted relief through property tax refund or credit programs. These benefits are typically administered through state income tax returns and are especially valuable in states like Minnesota, Vermont, and Missouri. Here’s what you need to know about these programs for the 2025 tax year.
🏡 What Are Property Tax Refund or Credit Programs?
These are state-run programs designed to refund a portion of property taxes to eligible residents—often low- to moderate-income households. The programs may be based on:
- Percentage of property tax relative to income
- Rent paid (if rent includes assumed property tax)
- Age or disability status of the taxpayer
- Household size and income
📍 Key States Offering Refund or Credit Programs
Minnesota – Property Tax Refund (PTR) & Renter’s Credit
- Homeowners earning up to $135,000 may qualify for a property tax refund based on income and the amount of tax paid.
- Renters can claim the Renter’s Credit (Form M1PR) if a portion of rent was used to pay property taxes.
- Due date: August 15, 2026, for 2025 returns
- Refunds can exceed $1,000 depending on income and property tax amounts.
Vermont – Property Tax Credit
- Available to homeowners and renters with household income under $128,000.
- Credit is based on the difference between property taxes and a percentage of household income.
- Claimed on Vermont Form HS-122 and Schedule HI-144.
- Maximum benefit depends on income and property value but often ranges up to $8,000 for eligible households.
Missouri – Property Tax Credit (Circuit Breaker)
- Available to homeowners and renters who are 65+, disabled, or receiving certain Social Security benefits.
- Max credit is $1,100 for homeowners and $750 for renters.
- Must file Form MO-PTC with the state return.
- Eligibility based on income (generally under $30,000–$34,000 for singles, slightly higher for married filers).
Other States Offering Similar Benefits
- Wisconsin: Offers a homestead credit for renters and homeowners based on income (file Schedule H or H-EZ).
- Michigan: Property tax credit based on household resources (file MI-1040CR).
- Pennsylvania: Offers a Property Tax/Rent Rebate for seniors and people with disabilities (Form PA-1000).
- New Mexico: Low-income homeowners/renters may qualify for a property tax rebate on Form PIT-RC.
- Idaho: Offers a property tax reduction (circuit breaker) for elderly and disabled homeowners (up to $1,500).
📄 Documentation Required
- Copy of property tax statements or rent certificates
- Proof of income (W-2, SSA-1099, 1099-R, etc.)
- Proof of age or disability status if applying under age-based categories
- State-specific forms such as M1PR (MN), HS-122 (VT), or MO-PTC (MO)
📊 Example: Minnesota Homeowner Refund
Sarah owns a home in Hennepin County and paid $4,200 in property taxes in 2025. Her household income is $42,000. Based on Minnesota’s refund table, she qualifies for a $950 refund under the M1PR program—significantly reducing her state tax liability.
💡 Tips for Claiming State Property Tax Benefits
- Don’t skip these credits just because your federal taxes are simple—state benefits are claimed separately.
- Use free state-specific filing portals when available—many allow direct filing of property tax refund forms.
- Keep rental receipts or landlord certifications for renter-based credits.
- Watch for state-specific due dates (some later than April 15).
✅ Summary
Property tax refund and credit programs offer vital relief for residents in states like MN, VT, MO, and others. Even if you don’t owe federal tax—or claim the standard deduction—you may be eligible for hundreds or even thousands in refunds from your state government. Always check your state’s department of revenue website or consult a preparer to see what you qualify for.
Need help determining your eligibility? Share your state, household income, and property tax or rent paid, and I’ll walk you through the available benefits.
