I am a retiree and I currently reside in Wisconsin near the Minneosta border. I am considering purchasing a condominium in Minnesota in addition to keeping my house in Wisconsin. Is it more beneficial for me to switch my main residence (i.e. become a MN resident) to Minnesota so I can utilize the homestead credit for property taxes? Thanks.
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Minnesota has a homestead credit for your primary residence. The way I understand it, Wisconsin does not. But I have heard that the Wisconsin property tax rebate is better than Minnesota's. In other words, if you are a lower income taxpayer, you would do better getting the property tax rebate, since both Minnesota and Wisconsin base their rebates on the amount of taxes paid verses the income of the taxpayer.
The homestead credit in Minnesota applies regardless of your income. So a higher income taxpayer that earns too much for a property tax refund would do better with the homestead credit.
Of course, you have other factors to consider, such as the fact that we here in Minnesota can't seem to ever get a football team to win the Super Bowl. -
Wisconsin
Wisconsin does have Homestead Credit (Sch H). It's a credit of _UP_ _TO_ $1160. You're eligible for this credit if your total income (including taxable and NONtaxable) is $24,500 or less and you pay rent or property tax. It's a sliding scale based on both your income and rent or property tax paid.
On the Wisconsin income tax return there is also a general credit of up to $300 -- you would max this out with $2500 or more of property tax paid.
You can qualify for both credits.
Also consider how you would come out in general on a Minnesota vs. Wisconsin income tax return. The Homestead credit for each state is just one factor. Also, how much does it cost to license a car in MN vs. WI, and other expenses...
BillComment
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