Homestead Classifications

What are the benefits of homestead classification?
A homestead classification qualifies your property for a classification rate of 1.00% on up to $500,000 in taxable market value. Homesteads are also eligible for a market value exclusion, which may reduce the property’s taxable market value. Homestead properties also qualify for other programs such as the disabled veteran’s market value exclusion, senior citizen’s property tax deferral and property tax refunds.

Who qualifies for a homestead classification?

You must be the owner or a qualifying relative* of at least one of the owners.
You must occupy the property as your primary residence
You must be a Minnesota resident. In the case of a qualified relative* the owner need not be a Minnesota resident.

*To qualify for a relative homestead you must be the owner’s son, son-in-law, daughter, daughter-in-law, stepchild, parent, parent-in-law, stepparent, grandchild, grandparent, grandparent-in-law, brother, brother-in-law, sister, sister-in-law, aunt or uncle.

How do I apply for a homestead classification?

Present or attach copy of the deed and Certificate of Real Estate Value (CRV) provided at closing usually labeled
“Homestead Filing Instructions.”
Provide Social Security numbers of all owners, spouses not on deeds and / or qualified relatives who occupy the property.
Apply in person at the City of Edina Assessing office with all documents; if you cannot apply in person:
Download a copy of the application form, attach all required items and fax or mail to the City of Edina Assessing Office.

How often do I apply?

Owner occupant with the return of the Homestead Application card; one time.
Qualifying relative homesteads and fractional homesteads are an exception and require updating each year. The Assessing Office mails a card for signature that needs to be returned to continue the property’s classification.

How many Homesteads may I claim?
One

Other properties you own may have a homestead classification if occupied by a qualifying relative. For more information, contact the assessor’s office in the community or county where the property is located.

Why must I provide my Social Security number?
Even though Social Security numbers are private information, under Minnesota state law, they must be provided before a homestead will be granted. Social Security numbers will be used to determine if owners or relatives of owners have applied for more than one homestead in the state.

When should I apply for a homestead classification?
Ideally as soon as possible after purchasing and moving into your new home. You may apply for homestead at any time during the year, To qualify for the classification for taxes payable the following year, you must own and occupy the home by December 1 and apply by December 15.

What will happen if I fail to comply with the homestead laws or file a false homestead?
If the assessor is not notified within 30 days that the property has been sold or is no longer being used as a primary place of residence, the homestead will be removed and penalties maybe imposed.

Is there anything else I should know?
Every homestead is unique. Some homesteads involve property held under a trust agreement. Other property is purchased with lender requirements that may affect the homestead classification. You are encouraged to contact the Edina Assessor’s Office with any questions you may have or refer to Minnesota Statute Chapter 273.124.

How is the homestead exclusion calculated?
For a homestead valued at $76,000 or less, the exclusion is 40 percent of market value, yielding a maximum exclusion of $30,400 at $76,000 of market value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400 minus nine percent of the valuation over $76,000 for a homestead property valued at $413,800 or more, there is no valuation exclusion.


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Homestead Application	Homestead Application
Homestead Exclusion Explanation	Download the Minnesota Department of Revenue's "Understanding Recent Changes in Homestead Benefits."