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Agricultural Homesteads First-Tier Valuation Limit

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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 $1,880,000
           over $1,880,000


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

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