Massachusetts Property Tax Relief for Seniors

By Laura Feakes, Elder Services I&R Specialist

Property taxes can become a growing burden for Massachusetts seniors on a fixed income. However, there are tax programs in place to save you money. Massachusetts law allows cities and towns to give exemptions to seniors, the blind, veterans, and other eligible homeowners to help them pay their property tax bills. A real estate tax exemption is a release or discharge from the obligation to pay all or a portion of a local property tax. A real estate tax deferral does not discharge the tax obligation like an exemption. Instead, it defers payment until the individual sells the property or dies. Exemptions and deferrals allow seniors to use resources that would go to pay taxes to defray living expenses instead. Seniors can also earn abatements through the Senior Property Tax Work-Off Program or a credit through the Circuit Breaker Tax Program.

Some exemptions are mandated by law, while others are by local option. Your board of assessors, as the local tax administrator, decides whether you qualify for an exemption. To find out about the specific eligibility and application requirements in your city or town, you must contact your local board of assessors. Below is an explanation of some of these exemptions:

Clause 41 – This is the basic exemption for seniors. Some sections of this clause require you to be 70 years old by July 1 of the tax year, while for other sections the eligible age is reduced to 65 years. Specific ownership, residency, income and asset requirements apply. The basic exemption is $500 but can vary by town option. Both deferrals (Clause 41A) and exemptions (clauses 41, 41B, 41C or 41 C1/2) are available under sections of this clause. Filing on time is required. Clause 17 – Seniors 70 or older may, as an alternative to Clause 41, qualify for exemption under Clauses 17, 17C, 17C1/2 or 17D, which provide a reduced benefit ($175, but can vary by town option), but have less strict eligibility requirements. Filing on time is required.

Clause 22 – There are various exemptions for qualified veterans and their spouses ranging from $400-$1,500 or full amount. In order to qualify you must have certification of a war related disability and not have been dishonorably discharged. Filing on time is required.

Clause 37 – This clause applies to taxpayers who are legally blind. The tax exemption under Clause 37A is $500. In order to qualify you must be registered with The Massachusetts Commission for the Blind. Filing on time is required.

Clause 18 – referred to as the “Hardship exemption” provides relief to taxpayers who by reason of age, infirmity, active military service, and poverty are, in the judgment of the local Board of

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Assessors, unable to contribute fully toward the public charges. Generally, to take advantage of this clause the property owner’s situation must be overwhelmingly compelling. A deferral may also be available.

Circuit Breaker Tax Program - Persons 65 yrs or older whose property taxes (or 25% of rent) exceed 10% of their annual gross income and who meet other qualifying criteria may be eligible for a refundable tax credit from the state. You may be eligible even if you receive a property tax exemption through your city/town. To obtain the credit, you must file a state income tax form, whether or not you owe income tax.

Tax Work Off Program –This program allows seniors to do volunteer work for their local governments at an assigned public service job in exchange for a reduction in their property taxes. The program is by local option so not all cities and towns offer it. Local programs set their own rules for the program using state guidelines, however basic eligibility requires the person to be age 60 or older, own a home in the city or town where they apply, and pay property taxes on that home. Most cities and towns limit the number of seniors who can take part in the Tax WorkOff Program each year. For more information contact your local Senior Center or Council on Aging or local Assessors office. Local participants include Adams, Dalton, Great Barrington, Lanesboro, Lee, Lenox, Monterey, North Adams, Pittsfield, and Williamstown.

One other thing to remember is that if you feel your tax assessment is high relative to other like homes in your town, you can appeal your Massachusetts property tax bill. More detailed information is available on-line at the Massachusetts Dept. of Revenue (DOR) website, www. mass.gov/ dor, in the “Seniors & Retirees” section. If you do not have access to the internet, you can request a copy of the DOR’s Taxpayer’s Guide to Local Property Tax Exemptions and Deferrals from Elder Services Information & Referral Dept. (413-499-0524).

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