Massachusetts Homestead Exemption: Tax Breaks and Declared Homestead

Massachusetts has no statewide property-tax homestead exemption. The tax break most homeowners mean is the residential exemption in G.L. c. 59, s. 5C, a local option that each city or town decides whether to adopt. Where a community adopts it, the exemption is worth up to 35 percent of the community's average residential assessed value, applies only to your principal residence, and is handled by your local board of assessors. The "declared homestead" under G.L. c. 188 is a different law that does nothing to your tax bill: it protects up to $1,000,000 of home equity from many creditors once you record a declaration. For other states, see our guide to homestead exemptions by state.

Information last verified on October 7, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Massachusetts property-tax exemptions under G.L. c. 59, ss. 5 and 5C, the Senior Circuit Breaker credit under G.L. c. 62, s. 6(k), the Proposition 2 1/2 levy limit in G.L. c. 59, s. 21C, and the homestead creditor protection under G.L. c. 188. It does not list which cities and towns have adopted the residential exemption or at what percentage, and it does not cover business or personal property or the law of other states.

Is there a homestead tax exemption in Massachusetts?

Not statewide. Massachusetts does not give every owner-occupied home a fixed exemption. Instead, G.L. c. 59, s. 5C allows a residential exemption "at the option of the board of selectmen or mayor, with the approval of the city council, as the case may be." Many communities have not adopted it, so whether you can get it depends entirely on where your home is.

The residential exemption is available only in a city or town "certified by the commissioner to be assessing all property at its full and fair cash valuation." Each community's board of assessors applies it, and the Department of Revenue's Division of Local Services (DLS) oversees local assessing.

Communities that vote to grant a residential exemption must notify the DLS Municipal Databank, and DLS tracks the local-option statutes each community has accepted on its Notification of Acceptance of Local Option Statutes page. This article does not reproduce that list. To find out whether your town offers the exemption and at what percentage, ask your board of assessors.

How much the residential exemption takes off

The statute sets a ceiling, and each adopting community picks its own percentage. Section 5C provides "an exemption equal to not more than 35 per cent of the average assessed value of all Class One, residential, parcels within such city or town."

Because the exemption is a share of the community's average residential value rather than of your own home's value, it works as a flat reduction in taxable value that is the same for every qualifying owner in that community. A condominium unit counts as a parcel. A cooperative member's unit can qualify only in a community that has accepted that part of section 5C.

There is a floor. Section 5C says that "in no instance shall the taxable valuation of such property after all applicable exemptions be reduced below ten per cent of its full and fair cash valuation." This article does not estimate a dollar saving, because the result depends on your community's chosen percentage, its average assessed value and its tax rate.

Who is eligible for the residential exemption

The exemption follows the home you actually live in. Section 5C says it "shall be applied only to the principal residence of a taxpayer as used by the taxpayer for income tax purposes." A second home or a rental unit you do not live in does not qualify under that rule.

The application, State Tax Form 128-5C, asks whether you owned and occupied the home as your principal residence on January 1 before the fiscal year begins (for fiscal year 2027, January 1, 2026), according to the Town of Eastham's copy of the form. Some cities use a different window: Boston says homeowners who recorded a deed and occupy the property as their principal residence between January 1 and June 30, 2026 may be eligible for fiscal year 2027. Your board of assessors can tell you the date it applies.

How and when to apply

Do not assume the exemption is applied for you. Some communities, such as Eastham, require you to file State Tax Form 128-5C on time; Eastham's copy warns that "IF YOUR APPLICATION IS NOT TIMELY FILED, YOU LOSE ALL RIGHTS TO AN EXEMPTION." If you believe you are eligible and your bill does not show the exemption, section 5C provides that "a taxpayer aggrieved by the failure to receive such residential exemption may apply for such residential exemption to the assessors, in writing, on a form approved by the commissioner."

The form is signed under the penalties of perjury, and it warns that "intentional misrepresentation of facts in this application may result in cancellation of this exemption and the subsequent issuance of an omitted bill." Tell your assessors if you stop using the home as your principal residence.

The filing deadline is the exemption deadline in G.L. c. 59, s. 59. Section 5C requires the application "on or before the deadline for an application for exemption under section 59," and section 59 sets that deadline as April 1 of the year to which the tax relates, or 3 months after the tax bill was sent, whichever is later. For fiscal year 2027, both Boston and the Town of Eastham list April 1, 2027. Eastham's copy of the state form warns that this deadline "CANNOT BE WAIVED BY THE ASSESSORS FOR ANY REASON."

The application is State Tax Form 128-5C. Section 5C does not say whether you must reapply each year; the Eastham and West Tisbury copies of the form are each issued for a single fiscal year, so ask your board of assessors whether your community requires a new application every year. The DLS guide to Massachusetts municipal property taxes collects the state's taxpayer guides to real estate exemptions.

Senior Circuit Breaker credit (state income tax)

The one statewide break tied to property taxes on a home is the Senior Circuit Breaker under G.L. c. 62, s. 6(k). It is not a property-tax exemption. The Department of Revenue's TIR 25-7 describes it as "a refundable credit against personal income taxes" for "an owner or renter of a principal residence located in Massachusetts who is age 65 or older at the close of the taxable year."

For an owner, the credit equals the amount by which property-tax payments exceed 10 percent of total income, up to the annual cap. TIR 25-7 states: "For tax year 2025, the maximum credit amount is $2,820." The claimant cannot be someone else's dependent.

These figures change every year. TIR 25-7 explains that the base on which the maximum credit is calculated "was increased from $750 to $1,500 by St. 2023, c. 50, §17," and the cap is indexed to inflation. According to the Town of Marblehead's May 2026 tax information session, you claim the credit on Schedule CB, filed with your Massachusetts income tax return, and for tax year 2025 the deadline was April 15, 2026. This section describes the owner calculation; renters should check the Department of Revenue's rules for renters.

Exemptions for veterans, blind residents and seniors

G.L. c. 59, s. 5 lists personal exemptions that the local board of assessors grants on application. Some are fixed statewide by the statute; several senior clauses are local options or let the community change the amounts. All figures below are the statutory amounts; your community may have adopted different ones where the statute allows.

You apply to your board of assessors. Under G.L. c. 59, s. 59, an application under clauses 22, 22E, 37, 37A, 41C and 41C 1/2 is due by April 1 of the year to which the tax relates, or 3 months after the tax bill was sent, whichever is later.

Clause 22 has other sub-clauses for other veteran situations that this article does not cover; ask your board of assessors which one fits. For the clause 41A deferral, the statute lets an eligible owner, "on or before the deadline for an application for exemption under section 59, apply to the board of assessors." The deferral is not forgiveness: the board grants it only where the owner has "entered into a tax deferral and recovery agreement."

Some cities and towns also offer their own means-tested senior exemption through a home rule petition approved by the Legislature. The Town of Marblehead describes one in its May 2026 tax information session, available only after a senior receives the maximum state Senior Circuit Breaker credit. Ask your assessors whether your community has one.

Assessment limits and Proposition 2 1/2

Massachusetts has no homestead assessment cap on an individual home. The limit people often have in mind, Proposition 2 1/2, caps the community's total levy, not your parcel. G.L. c. 59, s. 21C provides that "the total taxes assessed within any city or town under the provisions of this chapter shall not exceed two and one-half per cent of the full and fair cash valuation in said city or town in any fiscal year."

November 3, 2026 ballot

The Secretary of the Commonwealth's 2026 ballot questions page states that "the November 3, 2026 State Election ballot will include nine binding statewide ballot questions." The research for this article did not read the full text of each question, so this article does not describe their effect on property taxes. Check the Secretary's page for the official summaries.

The declared homestead: creditor protection, not a tax break

Massachusetts also uses the word "homestead" in G.L. c. 188, a separate law from the residential exemption. A declared homestead does not lower your property taxes. It limits how much of your home's equity many creditors can reach.

The statute sets two levels of protection:

• Automatic homestead: $125,000. Section 4 provides that "in the absence of a valid declaration of homestead recorded under this chapter, an estate of homestead to the extent of the automatic homestead exemption shall exist in a home." The automatic amount is $125,000.
• Declared homestead: $1,000,000. Section 1 defines a declared homestead exemption as "an exemption in the amount of $1,000,000 created by a written declaration, executed and recorded pursuant to section 5." The figure is a fixed dollar amount in the statute. Owners who hold the home jointly or as tenants by the entirety are together capped at $1,000,000.

To get the higher figure, you record a declaration. Section 5 requires that "a declaration of homestead shall be in writing, signed and acknowledged under penalty of perjury by each owner to be benefited by the homestead, except as provided in clause (4), shall be recorded." Owners age 62 or older, or disabled, may record an elderly or disabled homestead declaration under section 2; a disabled owner records it with a Social Security award letter or a physician's letter.

The homestead has limits. Section 3 says the home remains exposed to:

• a sale "for federal, state and local taxes, assessments, claims and liens";
• "a lien on the home recorded prior to the creation of the estate of homestead";
• "a mortgage on the home as provided in sections 8 and 9";
• a court order that "a spouse, former spouse or parent shall pay a certain amount weekly or otherwise for the support of a spouse, former spouse or minor children";
• ground rent, and judgments based on fraud, duress, undue influence or lack of capacity.

A homestead reduces exposure; it does not make a home safe from every creditor. For how the homestead works in a bankruptcy case, including which exemption system a Massachusetts filer may use, see Massachusetts bankruptcy laws. This article does not answer that question because the research could not confirm it from an opened statute. To find your deed, the recorded declaration or your parcel's assessed value, see Massachusetts property records.

When a homeowner dies

Massachusetts has no statutory homestead allowance in probate: G.L. c. 190B, s. 2-402 reads "Reserved." A surviving spouse, or children, may instead receive exempt property up to $10,000 under s. 2-403 and a reasonable family allowance during administration under s. 2-404, limited to 1 year if the estate cannot pay allowed claims. See Massachusetts probate laws for how those work.

Related

• Homestead exemptions by state
• Massachusetts bankruptcy laws
• Massachusetts probate laws
• Massachusetts property records

This article is general legal information about Massachusetts law (G.L. c. 59, ss. 5, 5C and 21C; G.L. c. 62, s. 6(k); G.L. c. 188; G.L. c. 190B), verified as of October 7, 2026. It is not tax or legal advice. For your situation, contact your local board of assessors, the Massachusetts Department of Revenue, or a lawyer licensed in Massachusetts.

Last updated: October 7, 2026.

Frequently Asked Questions

How much is the homestead exemption in Massachusetts?

There is no statewide homestead tax exemption. Where a city or town has adopted the residential exemption under G.L. c. 59, s. 5C, it is up to 35 percent of the average assessed value of all Class One residential parcels in that community, applied to your principal residence.

Does every Massachusetts town offer the residential exemption?

No. G.L. c. 59, s. 5C makes it a local option adopted by the board of selectmen or mayor with city council approval, and many communities have not adopted it. Ask your board of assessors whether your community offers it and at what percentage.

When is the deadline to apply for the residential exemption in Massachusetts?

G.L. c. 59, s. 5C ties the application to the exemption deadline in G.L. c. 59, s. 59: April 1 of the year to which the tax relates, or 3 months after the tax bill was sent, whichever is later. For fiscal year 2027, Boston and Eastham list April 1, 2027.

Do I have to reapply for the residential exemption every year in Massachusetts?

G.L. c. 59, s. 5C does not set a renewal rule. The application, State Tax Form 128-5C, is issued for a single fiscal year in communities such as Eastham and West Tisbury, so ask your board of assessors whether your community requires a new application each year.

Does a declared homestead lower my property taxes in Massachusetts?

No. The declared homestead under G.L. c. 188 is creditor protection only. Property-tax breaks come from G.L. c. 59, such as the local-option residential exemption in s. 5C and the personal exemptions in s. 5.

Does the Massachusetts homestead exemption protect my house from creditors?

G.L. c. 188 protects up to $125,000 automatically and up to $1,000,000 with a recorded declaration of homestead. It does not apply against taxes, liens recorded before the homestead, mortgages, or court-ordered support, among other exceptions in s. 3.

What property tax help is there for seniors in Massachusetts?

Owners and renters 65 or older may claim the Senior Circuit Breaker state income tax credit, up to $2,820 for tax year 2025 (G.L. c. 62, s. 6(k); TIR 25-7). Local assessors also administer senior exemptions and a deferral under G.L. c. 59, s. 5, clauses 41C, 41C 1/2 and 41A, several of which are local options.

Are disabled veterans exempt from property tax in Massachusetts?

Not fully under the clauses covered here. G.L. c. 59, s. 5, clause 22 provides $2,000 of taxable valuation or $400, and clause 22E provides $6,000 or $1,000 for a veteran with a 100 percent VA disability rating, whichever abates more tax. Other clause 22 sub-clauses exist; ask your assessors which applies.