The Boston residential exemption cuts the property tax bill on a home you own and live in as your primary residence, and last fiscal year it saved qualified Boston homeowners up to $4,353.74. If you bought a home in Boston recently, you'll likely need to apply for it yourself. For fiscal 2027, the deadline is April 1, 2027, but the City recommends filing by mid-October if you want the savings reflected on your December tax bill.
Key takeaways
- The residential exemption is for owner-occupants only. One exemption per person, for one principal residence.
- For fiscal 2026, Boston's residential tax rate was $12.40 per $1,000, and the exemption saved qualified owners up to $4,353.74, according to the City of Boston.
- For fiscal 2027, you generally need to have owned and lived in the home as of January 1, 2026. Some buyers who took ownership between January 1 and June 30, 2026 may also qualify.
- File by mid-October to have a shot at seeing it on your third-quarter bill in late December. The final deadline is April 1, 2027.
- Sellers: if your current tax bill includes the exemption, say so. A buyer who won't live there will pay more.
What is the Boston residential exemption?
The Boston residential exemption is a property tax break that removes a fixed dollar amount of assessed value from the taxable value of an owner-occupied home before the tax rate is applied. Because the amount is the same for every qualifying home, it saves every eligible owner roughly the same dollars, whether they own a Dorchester condo or a West Roxbury single-family.
For fiscal 2026, the City says qualified homeowners saved up to $4,353.74. At the fiscal 2026 residential rate of $12.40 per $1,000, that works out to about $351,108 of assessed value taken off the top.
A few ground rules from the City of Boston Assessing Department:
- You must own the property and occupy it as your principal residence.
- Your deed has to be recorded at the Suffolk County Registry of Deeds.
- You can only get one residential exemption, on one property.
- The exemption can't push your taxable value below 10% of the assessed value.
Who qualifies for the residential exemption in Boston for fiscal 2027?
For fiscal 2027 (July 1, 2026 through June 30, 2027), you generally qualify if you owned and occupied the property as your principal residence as of January 1, 2026. According to the City's FY2027 application, owners who obtained their principal residence between January 1 and June 30, 2026 may also be eligible in certain circumstances.
The City uses your Massachusetts income tax filing to confirm you live there, so the application asks for identifying information to verify a 2025 return filed from that address. If you bought in the first half of 2026, you didn't file from your new address yet, so call Assessing to confirm whether your situation fits.
Here's roughly how timing plays out:
When you took ownership and moved in | First year you can likely claim | Deadline to apply |
|---|---|---|
On or before January 1, 2026 | Fiscal 2027 (bills from July 2026 to June 2027) | April 1, 2027, or 3 months after third-quarter bills mail, whichever is later |
January 2 to June 30, 2026 | Possibly fiscal 2027, in certain circumstances. Confirm with Assessing | Same as above |
July 1, 2026 or later | Fiscal 2028, if you're living there on January 1, 2027 | Watch for the fiscal 2028 application next year |
When should I apply for the residential exemption in Boston?
Apply now if you can. The City recommends filing by mid-October so the exemption can show up on your third-quarter tax bill, which typically goes out in late December. The hard deadline for fiscal 2027 is April 1, 2027, or three months after third-quarter bills are mailed, whichever is later.
Why it matters: the third-quarter bill is the one that reflects the new year's tax rate. Get the exemption on it and you see the savings right away, instead of paying the full amount and waiting on a correction.
Two things to know:
- Filing doesn't pause your payments. Pay each quarterly bill on time while your application is pending.
- Decisions take time. The City has three months from your filing date to decide. If you're denied, you can appeal to the Massachusetts Appellate Tax Board within three months.
How do I apply?
You can apply in person or online. Paper applications are available from the Assessing Department (Room 301, Boston City Hall) and from the Taxpayer Referral and Assistance Center (TRAC) on the City Hall mezzanine, phone 617-635-4287. You can also apply through Boston Property Lookup. The City notes that recent buyers will see the application option under "Abatements/Exemptions" once third-quarter bills are issued in December.
Our take (light POV): don't wait for December. If you're eligible, file the paper form this month. It's a one-page task worth thousands of dollars a year, and it's the kind of thing that slides off the list during the first year in a new home.
How much will the residential exemption save on my home?
The savings are about the same dollar amount for most qualifying Boston homes, but they make a bigger percentage dent on lower-priced condos. Using the fiscal 2026 numbers as an illustration (the fiscal 2027 rate and exemption amount will be set in December):
Illustrative assessed value | Tax without exemption | Tax with exemption | Savings |
|---|---|---|---|
$375,000 condo | $4,650 | $465 | $4,185 |
$800,000 condo | $9,920 | $5,566 | $4,354 |
$1,500,000 single-family | $18,600 | $14,246 | $4,354 |
The $375,000 example saves a little less because of the 10% floor: taxable value can't drop below 10% of the assessed value.
What this means for buyers
- Budget your carrying costs without the exemption first. The listing's tax figure may reflect the seller's exemption, which doesn't transfer to you automatically. Ask your agent which number you're looking at.
- Plan to live there? Put the application on your closing checklist. File as soon as you're eligible.
- Buying as an investment or second home? You won't qualify, so use the full, non-exempt tax figure in your numbers.
What this means for sellers
- Be clear about your tax number. If your bill includes the residential exemption, note it in the listing so buyers, especially investors, aren't surprised later.
- Expect sharper buyers to ask. Where investor and rental demand is strong, the gap between an exempt and non-exempt tax bill can change the math on an offer.
Frequently asked questions
Can I get the residential exemption on a Boston condo I rent out?
No. The exemption only applies to the home you own and occupy as your principal residence. A rental unit or second home doesn't qualify.
What if I own a two- or three-family and live in one unit?
Owner-occupants of multi-family homes can apply because the property is their principal residence. How the exemption applies can depend on the property's details, so confirm with the Assessing Department before you budget around it.
Are there other Boston property tax breaks besides the residential exemption?
Yes. Boston offers personal exemptions for some seniors, veterans, and others. On June 30, 2026, the City adopted Clause 41D, which ties the senior exemption's income and asset limits to inflation, according to the City of Boston.
Do Cambridge, Somerville, and Brookline have a residential exemption too?
Yes, each runs its own program with its own amounts, rules, and deadlines. If you live outside Boston, check your city or town assessor's website. For example, Cambridge and Brookline post their applications online.
Will the City ever check that I still live there?
Yes. Boston periodically reviews owner occupancy, and if you no longer use the home as your principal residence, you lose the exemption.
Bought or selling a home in Boston this year?
If you're not sure whether your tax bill is showing the right number, or you're pricing a sale and want to get the carrying costs right for buyers, we're happy to help. Berkshire Hathaway HomeServices Warren Residential works with buyers and sellers across Boston and the surrounding towns. Reach out to our team here and we'll point you in the right direction.
