Real estate taxes—often referred to as property taxes—can be one of the biggest recurring expenses for homeowners and real estate investors. In Massachusetts, property tax rates vary by municipality, and while you can’t avoid these taxes altogether, there are several legal strategies and programs that can help you reduce them.
In this guide, we’ll break down everything you need to know about lowering your property taxes in Massachusetts. Whether you own a single-family home, investment property, or vacant land, this article will give you valuable insights to keep more money in your pocket.
Understanding Real Estate Taxes in Massachusetts
In Massachusetts, real estate taxes are assessed annually by local cities and towns based on the “assessed value” of your property. This assessed value is multiplied by the local property tax rate to calculate your tax bill.
Example:
If your property is assessed at $500,000 and your town’s tax rate is $14.50 per $1,000 of assessed value, your annual tax bill is:($500,000 / 1,000) x $14.50 = $7,250
Your property’s assessed value may not match its current market value, which is one of the key opportunities for appealing your tax bill.
Where Your Tax Money Goes
Your property tax payments help fund essential local services, including:
- Public schools
- Police and fire departments
- Road maintenance
- Municipal operations
Learn more: Massachusetts Department of Revenue: Local Property Tax
1. Review Your Property Tax Assessment
Your first step should be reviewing your annual tax assessment. Cities and towns mail assessment notices each year, and you typically have a limited window to challenge the valuation.
Key Tips:
- Check for accuracy. Are the square footage, number of bathrooms, or land area incorrect? Errors can inflate your assessed value.
- Compare to similar properties. Look at assessed values of comparable homes in your neighborhood. If yours is significantly higher, you may have a case for appeal.
How to Appeal:
Contact your local assessor’s office to file an abatement application. The deadline is usually February 1 of the year after the assessment.
More info: Appealing Your Assessment – Mass.gov
2. Apply for Exemptions
Massachusetts offers several property tax exemptions that can significantly reduce your bill, particularly if you meet specific criteria based on age, disability, veteran status, or income.
Common Exemptions:
Residential Exemption: Available in cities like Boston, Cambridge, Somerville, and others. It offers a substantial reduction for owner-occupied properties.
Boston Residential Exemption Info
Elderly Exemption (Clause 41C): For homeowners over 65 with limited income and assets.
Veterans Exemption: Available to disabled veterans or those who meet other qualifying criteria.
Veterans Property Tax Exemptions
Blind Persons (Clause 37A): Offers a flat-dollar reduction for legally blind homeowners.
Guide for Legally Blind Persons (Clause 37A)
Apply through your local assessor’s office. Every city/town may have different documentation requirements.
3. Consider a Tax Deferral (Seniors)
If you’re 65 or older and facing financial hardship, you may be able to defer paying property taxes until the home is sold or transferred. Interest will accrue on the deferred amount (usually at 4-8%).
Learn more: Senior Tax Deferral Program – Mass.gov
This program can free up cash flow while allowing seniors to age in place.
4. Take Advantage of CPA Exemptions
If your town has adopted the Community Preservation Act (CPA), you might see an extra surcharge on your tax bill. However, you may qualify for an exemption if your income is below a certain level. Each town has individual exemption forms to complete but here are the resources provided by the city of Boston.
Check your CPA eligibility here
5. File for Abatement After Property Damage
If your home experiences fire, storm damage, or other property destruction that decreases its value, you may be eligible for a tax abatement.
File a request with your assessor’s office as soon as possible—there’s typically a 3-month window after the damage.
6. Leverage Homestead Protection (Indirect Savings)
While this doesn’t reduce taxes directly, filing a Declaration of Homestead can protect up to $500,000 in home equity from creditors. This could preserve your long-term real estate investment and help avoid forced sales that might arise from financial hardship. IF you are unsure about your status, within the past ten years closing attorneys and title companies have made this a regular practice for borrowers to file this document. If you need a reference for some fantastic attorney’s that can help contact me and I’ll be happy to send them your way!
File a Homestead Declaration – Mass.gov
7. Invest in Energy-Efficient Upgrades (Some Municipal Incentives Apply)
Certain municipalities in Massachusetts offer real estate tax reductions or incentives for installing energy-efficient systems, such as solar panels, geothermal, or green roofs. You much understand though that Most municipalities in the state do not offer direct rebates on your property tax bill.
Check local policies: Contact your city/town assessor or check Mass Save incentives
Mass Save – Home Energy Rebates
8. Split or Subdivide Property (Advanced Strategy)
If you own a large parcel of land, subdividing your property (with or without zoning approval) could reduce your overall tax burden on underutilized space. Be cautious—this process can be expensive and time-consuming, but in the right scenario, it pays off especially if you plan to sell those subdivided parcels etc or rezone them to a designation that exempts that land entirely from property tax.
9. Enroll in Chapter Land Programs
If you own agricultural, forest, or recreational land, you may be eligible for a reduced assessment under the Chapter 61 programs.
- Chapter 61 – Forest land
- Chapter 61A – Agricultural land
- Chapter 61B – Recreational land
These programs allow your property to be assessed based on its current use rather than its development potential.
More on Chapter Land Programs – Mass.gov
10. Refinance and Plan Smart
While not a direct property tax reduction, refinancing your mortgage can improve your cash flow, making taxes easier to manage. You may also want to escrow taxes to avoid lump-sum payments, if you do not currently have any debt on your property or a mortgage servicer already putting that payment in escrow.
Long-term planning with a financial advisor or CPA can also ensure you’re maximizing deductions and structuring your real estate portfolio efficiently.
Quick Checklist: What You Can Do Today
✅ Review your most recent tax assessment for accuracy
✅ Compare your property’s assessed value with similar homes
✅ Mark your calendar for abatement or exemption deadlines
✅ Apply for residential or income-based exemptions
✅ Explore CPA or Chapter Land program eligibility
✅ Talk to your local assessor about overlooked savings
✅ File a Homestead Declaration if you haven’t already
Final Thoughts & Next Steps
If you’re a homeowner, investor, or planning to buy real estate in Massachusetts, it pays—literally—to stay informed and proactive about your property tax liabilities. Every dollar saved strengthens your financial foundation and improves your ROI.
Many of these strategies require documentation and deadlines, so staying organized is key. If you’d like personalized guidance, our team at Gaeta Properties can help assess your options and even connect you with local assessors or legal professionals to take the next steps.
👉 Contact Gaeta Properties today to learn more about reducing your real estate taxes or optimizing your property investments in Massachusetts.
Resources and Forms:
Massachusetts Property Tax Abatement Form
Declaration of Homestead of Natural Person(s) Form
Declaration of Homestead for Homes Owned
by Trustee(s) Form
Chapter 61 Land Program Info Doc
Massachusetts Full List of Town/City Tax Rates