What are real estate tax exemptions and abatements?

Real estate tax exemptions and abatements are deductions from the amount of property taxes homeowners must pay to the city or town where they live. Exemptions and abatements may cover all or part of the total real estate taxes due.

Massachusetts law allows cities and towns to give real estate tax exemptions to seniors, the blind, surviving spouses and minor children, homeowners facing hardships, and certain disabled veterans who meet financial, residency, and other eligibility requirements.

Cities and towns with property tax work-off programs can give abatements to senior volunteers who meet eligibility requirements.

Am I eligible?

To qualify for real estate tax exemptions, you must be a homeowner in one of these categories:

• an elderly person with financial need, age 70 or older (65 in some communities)
• a person who is legally blind (with proof of blindness)
• a widow/widower, or a minor child with one parent deceased
• a veteran with a wartime disability (or surviving spouse)
• a homeowner of any age who is facing a severe financial hardship

In addition:

• you must own your home, as a sole owner, joint owner, or as a tenant in common
• you must live in your home as your main residence as of July 1 of the tax year
• people applying for elderly exemptions based on need must meet income requirements
• people applying for elderly and surviving spouse/minor child exemptions must meet asset requirements
• veterans and certain elderly applicants have to meet residency requirements. These requirements may vary by community.

For tax abatement eligibility requirements for senior volunteers, see Senior Property Tax Work-Off Program.

What are the income limits?

• Seniors applying for exemptions based on financial need must meet specific income limits. These income limits vary by community. The gross income limit for elderly residents can range from $6000 to $13,000 if single, and from $7000 to $15,000 if married.

• Hardship exemptions are reviewed on a case-by-case basis.

• Seniors applying for property tax work-off program abatements may have to meet income limits, depending on where they live. Some cities and towns have income limits for the program and some do not.

• People in other categories do not have to meet income limits to qualify for an exemption.

What are the asset limits?

• People applying for elderly and surviving spouse/minor child exemptions must meet asset limits. These limits can vary by community. The asset limit for elderly residents can range from $17,000 to $28,000 if single, and from $20,000 to $30,000 if married. The value of the home, motor vehicles, cemetery plots, clothing, furniture and other household items are usually not counted.

• Seniors taking part in property tax work-off programs do not have asset limits.

• Hardship exemptions are reviewed on a case-by-case basis.

• People in other categories do not have to meet asset limits to qualify for an exemption or abatement.

What benefits will I get?

Tax exemption amounts depend on your category (blind, elderly, etc.) and the community where you live. Cities and towns decide on the exemption amounts they will offer, within limits set by the state. Your exemption may cover all or part of your real estate tax bill.

In general:

• the elderly exemption based on need is $500 
• the surviving spouse/minor child exemption is $175
• the exemption for the blind ranges from $437.50 to $500
• the veteran's exemption ranges from $250 to $950 to total exemption
• hardship exemptions are at the discretion of the city/town assessor

  Some cities have voted to increase the exemption amounts.

Tax abatements for the Senior Tax Work-Off Program range from $500 to $1000 depending on the city or town where you live. See Senior Property Tax Work-Off Program for more information.

How do I apply?

You must file an application for an exemption with the local assessor in the city or town where your home is located. You must file on or before December 15th, or three months after the actual tax bills are mailed, whichever is later. If you do not file on time, you will not get the exemption.

The assessor's office is usually located in the city/town hall or other municipal building. You can find local contact information in the City/Town Directory on the DOR web site. You may also get local contact information from the Massachusetts Property Tax Bureau at 617-626-2300.

The assessors have three months from the date you file your application to notify you if the exemption has been granted. You will be notified in writing. If you are denied an exemption, you can appeal the decision.

For information about applying for the Senior Tax Work-Off Program, see below.

What is the Senior Property Tax Work-Off Program?

The Senior Property Tax Work-Off Program is a program that allows seniors to do volunteer work for their local governments in exchange for a reduction in their property taxes. Many Massachusetts cities and towns offer a tax work-off program, but some do not. Local programs set their own rules for the program using state guidelines.

To be eligible, you must:

• be age 60 or older
• own a home in the city or town where you apply, and pay property taxes on that home
• meet local program requirements, such as income limits or years of residency
• offer a skill that your city or town can use

If you take part in a property tax work-off program, you will:

• work as a volunteer for your city or town at an assigned public service job. The program will try to find you a job that matches your skills and interests.
• be paid no less than the state minimum wage in the form of a voucher or credit
• receive a property tax abatement for your work. The maximum abatement ranges from $500 to $1000 depending on where you live.

Note: You do not have to pay state income tax on your abatement, but may have to pay federal tax.

To apply, contact your local Senior Center or Council on Aging, or call 1-800-AGE-INFO for contact information. For local Council on Aging (COA) telephone numbers and addresses, see Directory of COA Sites in Massachusetts on the Office of Elder Affairs web site.

Most cities and towns limit the number of seniors who can take part in the Tax Work-Off Program each year.

Useful links

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1. Massachusetts Bureau of Municipal Finance Law
   General information about property taxes in Massachusetts, including brochures about property tax exemptions:

   • For Blind Persons
   • For Qualifying Elderly Persons
   • For Qualifying Surviving Spouses, Minor Children and Elderly Persons
   • For Qualifying Veterans
     (These brochures require Adobe Reader)

2. Citizen Information Service - Property Tax Exemptions
   Description of the property tax exemptions set forth in the Massachusetts General Laws.

3. M.G.L. Chapter 54 Section 5K: Property tax liability reduced in exchange for volunteer services; persons over age 60
   Massachusetts law authorizing the Senior Citizen Property Tax Work-Off Abatement Program.

4. Senior Citizen Property Tax Work-Off Abatement
   State guidelines for the Senior Property Tax Work-Off Program, including maximum abatement, eligibility, tax liability, local options, and certification of service.

5. Commonwealth Conversations: Seniors who volunteer can work off some of their property tax bills
   Information about the Senior Citizen Property Tax Work-Off Program, including eligibility, benefits, administration, and other rules.

Real Estate Tax Exemptions section last updated on 5/03/10