· By Juan Murray
Boston Residential Tax Exemption: How to Save on Property Taxes
Boston's residential exemption saved qualifying owner-occupants up to $4,353.74 on their Fiscal Year 2026 property tax bill. For Fiscal Year 2027, owners who owned and occupied their home as a principal residence on January 1, 2026, or who recorded a deed and moved in between January 1 and June 30, 2026, may be eligible, and the filing deadline is April 1, 2027.
What is the Boston residential tax exemption and how much can you save?
It removes a fixed amount of assessed value from taxation for owner-occupied homes, worth up to $4,353.74 in FY2026. If you closed on a triple-decker in Dorchester or bought a condo in Jamaica Plain and moved in this year, you've probably heard other owners mention this exemption without the details. It is not automatic for new owners: you have to file. For a full picture of ownership costs when you sell, see how much you'll actually net from a Boston home sale, and for the tax side of a sale, see capital gains tax when selling a Massachusetts home.
The exemption removes a fixed amount of assessed value from taxation for owner-occupied homes. State law lets the city set it at up to 35 percent of the average assessed value of residential parcels. For Fiscal Year 2026 (July 1, 2025 through June 30, 2026), the City says it saved qualified homeowners up to $4,353.74. At the FY2026 residential rate of $12.40 per $1,000, that works out to about $351,108 of assessed value. State law also says the exemption can't reduce a property's taxable value below 10 percent of its full assessed value.
Key Takeaways
- The residential exemption saved qualifying owner-occupants up to $4,353.74 on the FY2026 bill, about $351,108 of assessed value at $12.40 per $1,000.
- It is not automatic for new owners: you have to file, and the FY2027 deadline is April 1, 2027.
- You must own the property and occupy it as your principal residence, and you can qualify on only one property.
- Owner-occupied condos, single-family homes, and multi-family homes can all qualify.
- Each December, check your third-quarter bill; if the exemption isn't on it, file by April 1.
Who qualifies for the Boston residential exemption?
You must own the property and occupy it as your principal residence, the same address you use for income tax purposes. For Fiscal Year 2027 (July 1, 2026 through June 30, 2027), the City says:
- Owners who owned and occupied their home on January 1, 2026, may be eligible.
- After a recent expansion, owners who recorded a deed at the Suffolk County Registry of Deeds and occupy the property as their principal residence between January 1 and June 30, 2026, may also be eligible.
You can qualify for the residential exemption on only one property.
How do you apply for the Boston residential exemption?
Follow these six steps and file by April 1, 2027.
- Confirm your eligibility dates against the rules above.
- Check your property record in Boston Property Lookup to confirm your assessed value and whether the exemption already appears.
- Watch for the third-quarter tax bill. The City applies the exemption to the third-quarter bill issued in late December, and applications can be downloaded from Property Lookup after those bills go out. You can also request one at 617-635-4287 or pick one up at City Hall.
- Complete the application. The City asks for your Social Security number, which it uses only to confirm your tax filing from the property's address. Bring or include any supporting documents the form asks for.
- Submit it in person or by mail to the Assessing Department, Room 301, 1 City Hall Square, Boston, MA 02201.
- File by April 1, 2027, for Fiscal Year 2027.
Can multi-family homes and condos get the residential exemption?
Yes. Owner-occupied condos, single-family homes, and multi-family homes can all qualify when the owner lives there as a principal residence. Each condominium unit is its own parcel under state law. If you own a two- or three-family and live in one unit, confirm with the Assessing Department how the exemption applies to your parcel.
How much does the residential exemption save at different property values?
Up to about $4,354, less when the 10 percent floor applies. These are illustrative examples using the FY2026 figures ($351,108 of exempt value, $12.40 per $1,000):
- Home assessed at $350,000: the exemption would exceed the assessed value, so the 10 percent floor applies. Taxable value can't go below $35,000, so the savings would be about $3,906 ($315,000 × $12.40 ÷ 1,000).
- Home assessed at $650,000: the exemption removes about 54 percent of the assessed value, for the full savings of about $4,354.
- Home assessed at $950,000: the full savings still apply, but they are a smaller share of a larger bill.
What is the difference between a residential exemption and a tax abatement?
A residential exemption and an abatement solve different problems. The exemption reduces your taxable value because you're an owner-occupant. An abatement challenges whether your assessed value is accurate. Assessors are required to value property at its fair cash value, so if you think your assessment is too high, ask the Assessing Department about the abatement process and deadline.
What mistakes do new owners make with the residential exemption?
The most common is assuming someone else files it. Don't assume a closing attorney or lender files the exemption for you. As a new owner, the filing is your responsibility. Each December, check your third-quarter bill: if the exemption doesn't appear on it, you can still file by the April 1 deadline for that fiscal year. Make sure the address on your income tax return matches the property.
FAQ
How much was the Boston residential exemption worth for FY2026?
Up to $4,353.74 in tax savings, according to the City. At the FY2026 rate of $12.40 per $1,000, that equals about $351,108 of assessed value. The FY2027 amount is set with the new tax rate.
What is the deadline for Fiscal Year 2027?
April 1, 2027. The City recommends filing by mid-October if you want the exemption to appear on your third-quarter bill.
Do I need to reapply every year?
Check your third-quarter bill each December. If the exemption isn't on it, file by April 1. If you aren't sure whether yours carries over, call the Taxpayer Referral and Assistance Center at 617-635-4287.
Can I get the residential exemption on a multi-family property?
Yes, if you own it and live in one of the units as your principal residence. Ask the Assessing Department how it applies to your specific parcel.
What is the difference between a residential exemption and a tax abatement?
The exemption excludes part of your assessed value because you're an owner-occupant. An abatement challenges whether the assessed value itself is accurate. They are separate filings.
Does the exemption transfer to a new owner when I sell?
No. A new owner qualifies based on their own ownership and occupancy and files their own application.
The bottom line: if you own and live in your Boston home, check your third-quarter bill and file for the residential exemption by the April 1 deadline if it isn't there.
Sources
- City of Boston, Residential exemption: https://www.boston.gov/departments/assessing/residential-exemption
- City of Boston, How to file for a residential exemption: https://www.boston.gov/departments/assessing/how-file-residential-exemption
- City of Boston, How we tax your property (FY2026 rate): https://www.boston.gov/departments/assessing/how-we-tax-your-property
- M.G.L. c.59 §5C: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter59/Section5C
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About Juan Murray
Juan Murray is a Boston broker associate with more than 30 years of experience helping buyers, sellers, and investors across Greater Boston, personally leading every transaction from the first conversation through closing.
RE/MAX Real Estate Center · (978) 581-0801
Equal Housing Opportunity. Juan Murray is licensed as a Broker in Massachusetts, regulated by the Massachusetts Board of Registration of Real Estate Brokers and Salespersons. This article is general information only and does not constitute legal, tax, or financial advice. Confirm your specific costs and obligations with your closing agent, tax advisor, or lender.
