How to Save on Property Tax

You're entitled to more than a property tax deduction.

If you’re a homeowner in Boston, the Residential Exemption is designed to encourage homebuyers to live in the home they purchase. If you own and live in your property, you don’t need to pay property tax on its full value. This exemption allows homeowners to save up to of $2,400.00 each year on their property taxes just for living in their home.

How do I get this?

The city makes it easy to apply for the exemption, but the timelines can be confusing since Boston’s fiscal year runs from July to June. To qualify, you must live in your home on January 1 of a given year and apply by April of that same year.

For example, if you buy a home in May, 2017, without an exemption filed by the seller, you’ll have to wait until fiscal year 2019 (starting July 1, 2018) before you’ll see the discount applied to your property taxes.

What to know before you buy.

Before you buy your home, ask the seller if their exemption is valid for the current year. If not,  you’ll temporarily have to pay full property taxes until you apply during the next fiscal year.

Additionally, if you are buying a new construction unit, it will not have the residential exemption applied. You will have to wait until the next fiscal year to be eligible.

Apply:

Boston makes it easy to apply online.