Boston Residential Tax Exemption

[Michael Vazza]

Speaking with many buyers in the Boston area, a lot are unfamiliar with Boston's Residential Tax Exemption. This is a great tax exemption to take advantage of for an owner occupied unit.

A quick few points:

-The residential exemption reduces your tax bill by excluding a portion of your residential property’s value from taxation. This fiscal year, the residential exemption will save qualified Boston homeowners up to $3,456.50 on their tax bill. The 2023 Fiscal Year is (July 1, 2022, to June 30, 2023).

-To file an application for Fiscal Year 2023, you have until April 3 2023. The exemption amount will be applied to your third-quarter tax bill that is issued in late December.

-You can only qualify for a residential exemption for one property - and the primary residence is the address from which you file your state income tax return and occupy.

-For the Fiscal year that began in July, the city set the 2023 residential tax rate at $10.88 per thousand in assessed value. So, if your property was assessed for $600,000, your tax bill would be calculated as $10.88 x 600 = $6,528.. With a possible exemption of $3,456.50 against this amount, this is a massive potential reduction in one of your largest ownership costs.