What Does a Homestead Exemption Mean in Minnesota?
We discuss how farmers in Minnesota can shield more asset value from Minnesota estate taxes
In Minnesota, the term “homestead exemption” is one of the most frequently misunderstood phrases in estate planning. This is because “homestead” refers to three entirely different things depending on whether you are talking about property taxes, creditor protection, or estate taxes.
If you are looking at your estate tax liability in 2026, the stakes are high. While the federal government has raised its exemption to $15 million per person, Minnesota remains one of the few states with a relatively low bar: a $3 million exemption.
Below is a detailed guide on how the “homestead” and other property-specific deductions work to shield your legacy from Minnesota’s 13%–16% estate tax.
1. The $3 Million Starting Line
