Senior Residential Tax reduction Programs

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This program allows qualifying seniors to receive a one-time abatement ( reduction)  on their property taxes in return for working a set amount of time for a city department 

Qualifications:

1. Applicant is over the age of 60 

2. Applicant meets the income threshold 

3. Applicant has lived in the City for at least 5 years

4. Only one applicant per household 

5.  Applicant must own home 

6. Applicant’s home is primary residence  

Senor tax deferral

Seniors may be able to delay payment of their property taxes. A property tax deferral is not a tax exemption, it defers payment of property taxes until the senior sells the property or passes away.

Qualified seniors enter into a written tax deferral and recovery agreement with their local assessors. The assessors will place a lean on the property. Join owners, remainder men, and mortgagees must give written prior approval. A remainder man is considered a beneficiary who inherits the property after the termination of a life estate. A life estate is a form of Joint ownership that allows the current property owner to remain in the home until they die, at. which point it’ll pass to the other specified owner?

Seniors must file an application for each fiscal year with their assessors by April 1st or three months after the actual tax bills are mailed, whichever is later. Documentation is required:

1. Birth certificate.

2. Evidence of ownership domicile and occupancy

3. Income tax returns

Eligibility is related to age, domicile, ownership, occupancy, and annual income. You must meet all eligibility requirements as of July 1st of the tax year. You must be 65 years or older, You must have had domicile in Massachusetts for at least 10 consecutive years before the tax year begins. Your domicile is where your principal and legal home is located. You may have more than one residence but only one domicile. You may domicile in rental property.

In many towns and cities, your income (gross receipts) for the previous calendar year cannot exceed $20,000. If married the combined gross income for you and your spouse cannot exceed $20,000. (The gross receipts limit can be increased by vote of your local legislative body of your city and or town) Gross receipts are defined as income from all sources and are broader than taxable income for federal or state income tax purposes. You may defer payment of all, or part of the taxes owed each year so long as you continue to qualify, own and occupy any property in Massachusetts for five years and must have domiciled in Massachusetts for the previous ten years.

Note: The above information was not prepared by a lawyer or Certified Public Accountant (CPA) or provide the exact replication of pertinent Massachusetts General Laws. The information represents the author’s best effort to summarize publicly available information. In preparing an application for Tax Deferral consultation with a tax attorney or CPA is advised.