Agricultural Homesteads First-Tier Valuation Limit
Minnesota Department of Revenue annually adjusts the first-tier valuation limit for agricultural homestead property, as required by law. Agricultural homestead property includes the "house, garage and first acre" (HGA) and the balance of homestead property, which is divided into two tiers for determining net tax capacity.
The first tier of value has a lower class rate (0.50 percent) than the remaining value above that limit. An increase in the first-tier valuation limit means more homesteaded farm value may be included in the 0.50 percent class rate for tax purposes.
| Class | Description | Net Tax Capacity (NTC) Class Rate |
|---|---|---|
| 2a | Agricultural Homestead House, Garage, One Acre: first $500,000 over $500,000 Remainder of Farm: first $3,500,000 over $3,500,000 | 1.00% 1.25% 0.50% 1.00% |
We calculate and certify the first-tier valuation limit rounded to the nearest $10,000. Assessment data is used to calculate the new limit, which is the product of:
- the first-tier limit for the preceding assessment year, and
- the ratio of the statewide average taxable market value of agricultural property per acre in the preceding assessment year to that of the second preceding assessment year.
You can find more information about agricultural homesteads in the Minnesota Property Tax Administrator’s Manual, Module 4.
The table below shows the certified agricultural homestead first-tier valuation limit amounts from assessment year 2006 to now.
| Assessment Year | Valuation Limit |
|---|---|
| 2006 | $690,000 |
| 2007 | $790,000 |
| 2008 | $890,000 |
| 2009 | $1,010,000 |
| 2010 | $1,140,000 |
| 2011 | $1,210,000 |
| 2012 | $1,290,000 |
| 2013 | $1,500,000 |
| 2014 | $1,900,000 |
| 2015 | $2,140,000 |
| 2016 | $2,050,000 |
| 2017 | $1,940,000 |
| 2018 | $1,900,000 |
| 2019 | $1,880,000 |
| 2020 | $1,900,000 |
| 2021 | $1,890,000 |
| 2022 | $1,890,000 |
| 2023 | $2,150,000 |
| 2024 | $3,500,000 |
Questions?
If you have questions, email Proptax.division@state.mn.us
