Part of your rent covers your landlord’s property tax, and several states give renters a tax credit for it. Before you file, check your state revenue department’s website for a renter’s credit. If your state’s credit is refundable, it pays even if you owe no income tax, so claim it in years you wouldn’t otherwise file.
If you’ve assumed property tax breaks are only for owners, you’ve had no reason to look. The names don’t always help. Michigan’s credit for renters is called the Homestead Property Tax Credit.
The programs also differ in ways that decide what one is worth to you. Michigan’s counts 23% of the rent you paid as property tax in most cases. Minnesota’s Renter’s Credit is refundable and claimed on the state income tax return with a Certificate of Rent Paid, which your landlord must give you by Jan. 31. For 2025 returns, it tops out at $2,720 for the lowest incomes and disappears once household income reaches $77,570.
California’s renter’s credit is a flat $60 or $120, depending on filing status. It has an income limit, and because it’s nonrefundable, it can only reduce tax you already owe.
To size up your own state, use its revenue department’s website to answer three questions:
- Whether a program exists. Search the site for “renter” and “property tax credit,” since some program names never mention renters.
- Whether it’s refundable. A refundable credit can make filing worthwhile on its own if you’re retired or earn too little to owe tax. Minnesota requires a federal and a state return to claim its credit, even from renters who wouldn’t otherwise have to file.
- What paperwork it needs. Minnesota uses the landlord’s certificate, and if yours hasn’t arrived by Feb. 1, ask the state for a Rent Paid Affidavit instead. Michigan may require proof of the rent you paid.
If you rented in past years without claiming, check those years too. Michigan accepts a missed claim up to four years after the original due date, and Minnesota allows three and a half years from the due date for renters who weren’t required to file.
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