Massachusetts Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability

Massachusetts (MA) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Massachusetts property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.

All Massachusetts property tax exemptions at a glance

Exemption	Who qualifies	Benefit	Typical savings
Homestead (general)	Owner-occupied primary residence	~$3,080 value reduction	$34/yr est.
Senior / Age 65+	Owner-occupied; age 65+; often income-capped	Additional reduction or freeze	$200 – $2,000/yr
Disabled veteran	Service-connected disability rating	Up to 100% exemption in many states	$1,000 – full bill
Disability (non-veteran)	Permanent total disability	Reduction + sometimes freeze	$200 – $1,500/yr
Surviving spouse	Of veteran, first responder, or senior	Continuation of decedent's exemption	Same as deceased's benefit
Agricultural / farm	Active agricultural use	Use-value assessment instead of market	30% – 80% lower bill

Estimated savings use Massachusetts's effective property tax rate of 1.11% on the median home value of $525,800. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.

Residential Exemption (Local Option)

About 17 Massachusetts cities and towns have adopted a residential exemption, which shifts tax from owner-occupied residential property to other classes (commercial, industrial, non-owner residential).

How it works

A fixed dollar amount (e.g., 20-30% of the average residential parcel's assessed value) is subtracted from the assessed value of every owner-occupied residence. Non-owner-occupied residential property (rentals) pays the full assessed value. Commercial/industrial is separately classified and taxed at a different (higher) rate.

Who has it

Boston, Cambridge, Brookline, Somerville, Waltham, Nantucket, and a handful of others. Specific amounts for FY 2026 vary:

• Boston: approximately $3,656 tax credit for qualifying owner-occupants
• Cambridge: approximately $3,080
• Somerville: approximately $3,655
• Nantucket: residential exemption adopted but exact figure varies annually

Eligibility

• Own and occupy the property as principal residence on January 1 preceding the fiscal year
• File an annual residential exemption application (typically by April 1) with the local assessor
• Must be your principal residence for Federal and State income tax reporting

Senior Exemptions — Clause 41C and Variations

Clause 41C Senior Exemption

The primary senior local exemption, adopted by most Massachusetts cities and towns under MGL Chapter 59 §5 Clause 41C:

• Age 70+ on July 1 preceding the tax year (some localities adopt age 65 under Clause 41C½)
• Income and asset limits set locally (varies widely)
• Exemption amount typically $500 to $1,000 credit
• Must be resident of Massachusetts 5+ years, own and occupy for current year

Clause 41A Tax Deferral

An alternative to the exemption — lets seniors defer payment of some or all property tax until the property is sold or transferred:

• Age 65 or older
• Gross income not exceeding approximately $40,000 (locally adopted threshold)
• Deferred tax accrues interest (typically 2% per year, locally set)
• Lien attaches to property; repaid from sale proceeds or estate

Clause 41 (the older, smaller exemption)

Available in towns that have not adopted Clauses 41C or 41A. Small credit for age 65+ with very low income.

Clause 37A Disabled Veterans

Varying amounts based on VA disability rating. 100% disabled veterans qualify for the highest exemption (often around $2,000 credit or full exemption). Surviving spouses qualify; may also overlap with Gold Star Family exemption.

Senior Circuit Breaker (State Income Tax Credit)

Separate from local property tax exemptions, Massachusetts offers a refundable state income tax credit for seniors who pay high property tax relative to income. This is the Senior Circuit Breaker credit (MGL Chapter 62 §6(k)).

Eligibility for tax year 2025 (filed 2026)

• Age 65+ on January 1, 2026
• Principal residence in Massachusetts
• Home's assessed value not exceeding $1,244,000 (2025 threshold, indexed annually)
• Property tax paid exceeding 10% of total income; OR 25% of rent exceeds 10% of income (for renters)
• Income not exceeding:
  • Single filer: approximately $69,000
  • Head of household: approximately $87,000
  • Joint filer: approximately $104,000

Maximum credit

For 2025, the maximum credit is $2,730. The credit equals the amount of property tax paid (or 25% of rent) that exceeds 10% of total income, up to the maximum.

How to claim

File Schedule CB with your Massachusetts Form 1 income tax return. The credit is refundable — you receive it even if you have no state tax liability. A means-tested 2023 expansion made more seniors eligible.

Frequently Asked Questions

What is the Massachusetts Senior Circuit Breaker credit?

A refundable state income tax credit for seniors age 65+ whose property tax (or 25% of rent) exceeds 10% of income. For 2025, maximum credit is $2,730. Income limits approximately $69,000 single / $87,000 head of household / $104,000 joint. Home assessed value must not exceed $1,244,000. Claimed on Schedule CB of Form 1.

What is the Massachusetts residential exemption?

A local option adopted by about 17 cities and towns that shifts property tax burden from owner-occupied residential to other classes. Boston's FY 2026 residential exemption is approximately $3,656 per qualifying owner-occupant; Cambridge $3,080; Somerville $3,655. Apply annually with the local assessor, typically by April 1.