Personal Exemptions FY24

Property Tax Relief/Personal Exemptions

Fiscal Year 2024

(July 1, 2023 to June 30th, 2024)

WHAT IS AN EXEMPTION?

A “Clause Exemption” is a release from the obligation to pay all or a portion of taxes assessed on your property. The clause exemptions listed here are based on the personal circumstances of the property owner as of July 1st. The Massachusetts Legislature has enacted the following clause exemptions or deferrals, all of which are subparagraphs of the Massachusetts General Laws Chapter 59, Section 5. Per state law, if an exemption is granted, the exemption amount can only be applied to the Actual (not Preliminary) Tax Bills. Preliminary is the 1st & 2nd quarter bills, Actual is the 3rd & 4th quarter bills. Filing an application does not entitle an applicant to a delay in making a tax payment or stay the collection of taxes. Exemptions are not abatements in that they do not affect the valuation of the property, but simply reduce the taxes owed.

The City of Salem offers a variety of options for property tax relief for qualifying individuals such as the blind, disabled veterans, surviving spouse – husband or wife – or minor whose parent is deceased, low income elderly persons and more. The qualifying date for exemptions for fiscal year 2024 is July 1, 2023. Applicants must own and occupy their homes, as well as meet any and all qualification criteria as of this date. With limited exceptions (CPA and Deferrals), you may only receive one exemption under M.G.L. c. 59 § 5 for each fiscal year.

*Minimum Tax: No exemption can reduce the amount of tax paid to less than 10% of the total tax bill. If the application of any exemption would result in a tax less then the 10% minimum due, the total exemption cannot be allowed. Exceptions are any Full Exemptions/Clause 18/Deferrals 41A

Applications:

An application and mandatory requirements must be filed with the Assessors each fiscal year in the Assessing Office. The application is due no later than April 1st, 2024 or three months after the actual tax bills are mailed, whichever is later. Filing on time is required. The City of Salem Assessing Department starts collecting applications after Labor Day in September. The filing of the exemption application does not stay the collection of the tax, which should be paid as assessed. An exemption, even if received in prior years, is not automatically approved/denied but must be specifically acted upon by the Board of Assessors. The Assessors' action is discretionary only insofar as they determine that an applicant, according to the documentation provided, does or does not meet the eligibility requirements. Notice of the Assessors' action will be sent to each applicant.

Documentation Required:

Exemptions are granted only on the primary residence. Some exemptions are age dependent and/or means tested (income and/or assets), as an applicant must provide information the Assessors deem to be reasonably required to establish eligibility. The information an applicant may be requested to furnish includes, but is not limited to: (1) copy of birth certificates and/or death certificates, (2) Copy of ID, (3) evidence of domicile and occupancy, (4) income tax returns and bank statements, and (5) other financial documents. If your property is being held in a trust, you must submit the full trust documents, including amendments and scheduled of trustees & beneficiaries to be considered a qualified owner for an exemption. If you hold a life estate in the domicile, you are a qualified owner for an exemption.

Assets or "whole estate" means all assets to which you have legal title and access as sole, joint owner or trustee that contribute to your total worth. Assets include but are not limited to: Savings, Certificates of Deposits, IRAs, 401K's, Stocks, Bonds, Mutual Funds, Annuities, Income properties, Second homes, Vehicles/Trailers/Boats/Large construction vehicles. Assets DO NOT include the value of your domicile up to a 3 unit home which one unit you reside. The Assets limits changes every year with the MA Cost of Living Adjustment (COLA) set by the Massachusetts legislature.

Income or "gross receipts" means income from all sources and is broader than taxable income for federal or state income tax purposes. It includes but is not limited to retirement benefits, pensions, wages, etc. Please include your Income tax returns from the previous year (State and Federal both 2022), Bank statements, Savings and Checking accounts statements as of July 1, 2023, Pension Statements, Social Security Statements, Rental Income receipts, Interest and/or dividend income and Capital gains, etc. If you do not file an income tax return, you are required to fill out state Form M-4506 and submit it to the Assessors office so that we may verify this as a third party with the DOR. The Income limits changes every year with the MA Cost of Living Adjustment (COLA) set by the Massachusetts legislature.

Do not submit originals, please make copies of your documents before submitting with your application.

General Requirements:

  • For all the exemptions listed below, the filing deadline is April 1, 2024. The Assessing Department starts collecting applications after labor day (mid-September 2023)
  • All applications must be completed on an approved form available from the Assessor’s Office and received by the deadline annually.
  • A copy of your ID is required for first time applicants
  • Unless otherwise noted, an applicant must own and be domiciled in the property as of July 1, 2023. Your domicile is where your principal and legal home is located, your family, social, civic and economic life is centered and you plan to return whenever you are away. You may have more than one residence, but only one domicile.
  • If the title to the property is held in trust, the applicant must be both a trustee and have beneficiary interest as of July 1, 2023, to qualify. A copy of the trust along with any amendments, the schedule of interest and beneficiaries is required along with the application.
  • An applicant must meet all other pertinent qualifications as of July 1, 2023.
  • Please make copies of the required documents before submitting an application , do not send originals.
  • If two or more co-owners qualify for different exemptions, they may receive the exemption for which each qualifies. If they qualify for the same exemption, then only one may receive it with the exception of Clause 22 (both spouses receives the full exemption) and Clause 41C (for unmarried co-owners, each will receive an exemption equal to their ownership interest).
  • Lastly, a full interior & exterior inspection of the property is required by the Assessor's Office if it hasn't been inspected in the past 9-10 years. The required, cyclical 10-year, Interior & exterior inspection that is part of the exemption process, helps keep our records up to date with the data on your property which will essentially ensure a fair and equitable assessment. This quick (less than 10 minutes) walk through is scheduled at a time and date convenient for you. Please know that our assessors show up wearing an ID badge and are fully Covid-19 vaccinated, they observe the current health advised protocol by wearing a face mask and avoid contact with surfaces as we make the inspection as brief as possible.

Below is general information regarding some of the exemptions available. Please contact the Assessors office at (978)619-5618 or email Claudia Forgione at Cforgione@salem.com for exemption applications and more information.

Personal Exemptions Clauses:

  • Clause 37A - (Legally Blind)
  • Clause 17D - (Seniors 70 years of age+ by July 1st, Surviving Spouses, Minor Child of Deceased Parent)
  • Clause 41C - (Elderly Exemption 65 years of age or older)
  • Clause 41A - (Tax Deferral)
  • Clause 42 - (Surviving spouse of Police Officer or Firefighter killed in the line of duty)
  • Clause 43 - (Minor children of Police Officer or Firefighter killed in the line of duty)
  • STEP PROGRAM FOR SENIORS - (Seniors 65 years of age or older who receive the MA State Circuit Breaker credit on their income tax return)
  • CPA Exemption - (Low income persons of any age or low to moderate income seniors 60 years of age or older as of Jan 1)

Veterans Exemption Clauses:

  • Clause 22 - (Disabled Veteran with Service Connected Disability of 10% or more but under 100%, Veterans Awarded Purple Heart)
  • Clause 22A - (Veterans-Loss or Permanent Loss of Use of One Limb, Medal of Honor/Service Cross recipients or Prisoner of War)
  • Clause 22B - (Veterans-Loss or Permanent Loss of Use of two Limbs)
  • Clause 22C - (Veterans with total disability & qualifying for Specially Adapted Housing)
  • Clause 22D - (Surviving Spouse, who never remarried, of service members or guardsmen who died or were presumed dead in a combat zone during active duty)
  • Clause 22E - (Veterans-100% Disability or 100% pay rate due to being unemployable)
  • Clause 22F - (Veteran with service-connected paraplegia or 100% disabled due to serviced-connected blindness)
  • Clause 22H - (Gold Star Parent)

Motor vehicle Excise Exemptions:

  • For both Disabled Non-Veterans and Veterans

CLAUSE 37A - (Legally Blind)

EXEMPTION AMOUNT - Exemption amounts begin at $500 and can go to $1,000.

OWN AS OF JULY 1 - Applicant must own property as of July 1, 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile as of July 1, 2023.

INCOME REQUIREMENTS - None

DOCUMENTATION REQUIREMENTS - Applicant must annually provide a current Certificate of Blindness verification from the Division of the Blind or from their attending physician or a copy (front and back) of the current identification and certificate of blindness card. The applicant must be legally blind as of July 1st 2023.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, the applicant upon qualifying is eligible for the full exemption amount regardless of the number of co-trustees. The applicant however, MUST be both a trustee and a beneficiary to qualify for the exemption. Any property in a TRUST is required to provide a copy of the Trust and any amendments to the trust plus the schedule of beneficiaries along with the application.

Clause 17D - (Seniors 70 years of age+ by July 1st, Surviving Spouses, Minor Child of Deceased Parent)

The applicant must be a widow/widower (of any age) who was married to the decedent at the time of their death or a minor under 18yo whose parent is deceased, who have whole estates (assets) within certain limits. Additionally, seniors 70 years of age or older by July 1st who do not meet the income requirements for the 41C exemption may be eligible for this lesser exemption. The total value of the applicant’s assets* cannot exceed $77,857. There are no restrictions on income.

EXEMPTION AMOUNT - The exemption amount begins at $374 & can go up to $748 for FY24 depending on the amount of taxes paid in prior fiscal year (these figures change every year with DLS – Cost of Living Adjustment %).

AGE REQUIREMENTS - If applicant is filing for Clause 17D (Aged) they must be 70 years old as of July 1st. A widower can be any age and a minor child (younger than 18) of deceased parent(s).

OWN AS OF JULY 1 - For surviving spouse or minor children of deceased parents they must own the property as of July 1st.  In the case of elderly persons 70 years or older by July 1st, they must have owned and occupied the property on which the exemption is being filed for the past 5 consecutive years.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile.

INCOME RESTRICTIONS - None

ASSETS RESTRICTIONS - Total value of owner occupied domicile, including up to a 3-unit building of which one unit is owner occupied, is exempt. Total value of estate, real and personal, including value of any portion of domicile over 3 units, which produces income, plus money in the bank (Savings/Checking/etc), Certificates of Deposits, IRA's, 401K's, Stocks, Bonds, Mutual Funds, Annuities, Second Homes, Registered Vehicles (including leased), etc. cannot exceed $77,857 for fiscal year 2024 (changes every year with DLS – Cost of Living Adjustment %). If a person has a joint bank account with another person, the total money in the account must be declared since either joint owner has access to all of the money in the account.

DOCUMENTATION REQUIRED - Income Tax Returns (State and Federal) from previous year (2022), Bank Statements, Savings and Checking Accounts as of July 1, 2023 *see Assets under Documentation Required above. First time applicants must provide a copy of birth certificates, a copy of the death certificate for spouse or parent who died before July 1 of the tax year. Pension statements, Social Security Statements and Rental income receipts are encouraged for 1st time filers so we can determine if you might qualify for a clause more beneficial to you.

MARITAL STATUS - Surviving spouse must remain unmarried to qualify for the exemption. If the ex-spouse dies after the divorce, the applicant is not considered a surviving spouse. If the spouse dies while the applicant is separated, the applicant is considered a surviving spouse.

MULTIPLE OWNERS - All owners must qualify with regards to assets. Co-owner does not include husband and wife (spouse). If you own the property with someone who is not your spouse, for example, your children, siblings or other relatives, then each of the other co-owners must also satisfy the asset tests. Documentation required from applicant (bank statements/IRAs/401Ks/etc.), is also required from all owners regardless if they qualify age wise or not.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, the applicant upon qualifying is eligible for the full exemption amount regardless of the number of co-trustees. The applicant however, MUST be both a trustee and a beneficiary to qualify for the exemption. Any property in a TRUST is required to provide a copy of the Trust and any amendments to the trust plus the schedule of beneficiaries along with the application.

Clause 41C - Elderly (low income seniors 65yo or older) Exemption

The elderly exemption 41C provides assistance to elderly taxpayers who meet the age (65 or older by July 1, 2023), income, whole estate and residency requirements below. Please note that if you are elderly but do not meet one or all of the personal exemption 41C requirements, you may be eligible for a lesser amount of assistance under personal exemption 17D.

EXEMPTION AMOUNT - The exemption amount begins at $500 & goes up to $1,000

OWN AS OF JULY 1 - Applicant must own the property as of July 1, 2023. In addition they must have been continuously domiciled in Massachusetts for the 10 years preceding the application and have owned and occupied the property or other property in Massachusetts for 5 years or be the surviving spouse of a person who has owned real estate in Massachusetts for 5 years.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile as of July 1, 2023.  They must also have lived in Massachusetts for the preceding 10 (ten) years.

AGE AS OF JULY 1 - The applicant must be 65 years of age as of July 1, 2023.

INCOME RESTRICTIONS - Gross receipts from all sources must be less than $31,105 if single and $37,902 if married.

ASSETS RESTRICTIONS - Total value of owner occupied domicile, including up to a 3-unit building of which one unit is owner occupied, is exempt. Total value of estate, real and personal, including value of any portion of domicile over 3 units, which produces income, plus money in the bank (Savings/Checking/etc), Certificates of Deposits, IRA's, 401K's, Stocks, Bonds, Mutual Funds, Annuities, and Second Homes, etc. cannot exceed $54,498 if single or if married cannot exceed $67,161. If a person has a joint bank account with another person, the total money in the account must be declared since either joint owner has access to all of the money in the account.

DOCUMENTATION REQUIRED - Income Tax Returns (State and Federal) from previous year (2022), Bank Statements, Savings and Checking Accounts as of July 1, 2023. First time applicants must provide a copy of birth certificates.

CO-OWNERS - All owners must qualify with regard to income and assets. Co-owner does not include husband and wife (spouse).If you own the property with someone who is not your spouse, for example, your children, siblings or other relatives, then each of the other co-owners must also satisfy the annual income and asset tests.

PROPERTY IN TRUST - A property held in trust with multiple trustees other than the applicant’s spouse, each co-trustee must satisfy the annual income and assets requirements. In addition the applicant must be both trustee or co-trustee and listed as a beneficiary. If all trustees qualify individually for both the income and assets requirements then the applicant would receive the percentage of the exemption as it relates to the percentage of their legal interest in the property. (e.g. 2 trustees = divide exemption by 2, 3 trustees = divide exemption amount by 3, etc.). Any property in a TRUST is required to provide a copy of the Trust and any amendments to the trust plus the schedule of beneficiaries along with the application.

LIFE ESTATE - If the applicant has retained a LIFE ESTATE they qualify for the full exemption regardless of who the trustees or beneficiaries are or who is the legal owner.

Clause 41A - Senior Tax Deferral (65yo or over)

Under Clause 41A, seniors may also be able to delay payment of their property taxes. A property tax deferral does not discharge the tax obligation like an exemption. Instead, it defers payment until the senior sells the property or passes away. A deferral allows seniors to use resources that would go to pay taxes to defray living expenses instead. Taxpayers may qualify for personal exemptions under other clauses (for example, for seniors, disabled veterans, blind persons or surviving spouses)and could defer all or part of the balance of their reduced taxes. If you qualify, you must enter into a written tax deferral and recovery agreement with the Assessors Office. The assessors will record a statement at the Registry of Deeds to continue the lien that exists on your property by law to secure payment of the deferred taxes. All owners/co & Joint owners, remaindermen and mortgage holders (mortgagee) must give prior written approval by signing the tax deferral agreement.

DEFERRAL AMOUNT - All or a portion of the real estate taxes can be deferred each year at 4.5% interest (as voted on by the City Council in FY2010). Water and sewer liens may also be deferred.

AGE REQUIREMENTS - The applicant must be 65 years of age or older by July 1st of the year of application.

OWNERSHIP & DOMICILE AS OF JULY 1 -  Applicants must have owned and occupied your domicile or any other real property in Massachusetts (including present property) for five years. Massachusetts must have been your domicile for the preceding ten years.

INCOME RESTRICTIONS - Gross receipts from all sources must be less than $31,105 if single and $37,902 if married. There are no restrictions on assets*.

DOCUMENTATION REQUIRED - Income Tax Returns (State and Federal) from previous year (2022), Bank Statements, Savings and Checking Accounts as of July 1, 2023. Applicants must also provide a copy of birth certificates and IDs. These documents are required for every year you apply.

CO-OWNERS - If you own the property with someone who is not your spouse, the amount you may defer annually is also limited to your proportional ownership share of the year’s tax.

PROPERTY IN TRUST – If your property is held in a Trust, you are the owner only if you are a trustee or co-trustee of the trust and you have a sufficient beneficial interest in the domicile. Any property in a TRUST is required to provide a copy of the Trust and any amendments to the trust plus the schedule of beneficiaries along with the application.

LIFE ESTATE - If you hold a life estate in the domicile, you are the owner.

PAYMENT - This is considered a lien on the property and must be paid in full along with the accrued interest to the City of Salem upon the sale of the property or death of the taxpayer, unless your surviving spouse continues to defer. As of that date, the interest rate goes up to 16%. If 6 months later, the deferred amount has not been paid, the treasurer may petition the Land Court to foreclose the lien on the  property.

Clause 42 - (Surviving spouse of Police Officer or Firefighter killed in the line of duty)

This total exemption provides for the full abatement of the fiscal year tax to qualified applicants. This exemption applies to a surviving spouse, unless he or she remarries, of a police officer or firefighter killed in the line of duty. There are no Income or Asset restrictions.

Clause 43 - (Minor children of Police Officer or Firefighter killed in the line of duty)

This total exemption provides for the full abatement of the fiscal year tax to qualified applicants. It applies to surviving minor children of a police officer or firefighter killed in the line of duty, provided that the real estate is owned and occupied by said minor children as their domicile. There are no Income or Asset restrictions.

Senior Tax Exemption Program (STEP is voted on by City Council every 3 years)

For persons aged 65 years old or older by January 1, 2023. Applicants must have filed a 2022 Massachusetts State Tax Form Schedule CB (Circuit Breaker) and been granted the deduction when they filed their state taxes. The Assessing Office deducts half of what you were granted from the state. This exemption is shall not be in addition to any exemption allowable under the General Laws.

OWNERSHIP & DOMICILE - The qualifying real property is owned and occupied by the single or joint applicants as their domicile. If held in a trust, applicant must be the Trustee and the beneficiary according to the Trust documents. You, or at least one joint applicant, must have owned and occupied a home in Salem as your principal residence for the past 10 consecutive years.

AGE REQUIREMENTS - Applicant is 65 by the close of the previous year (joint applicant is at least 60)

DOCUMENTATION - Massachusetts State Tax Return Forms including Schedule CB (Circuit Breaker) and a copy of a valid Massachusetts I.D. with the application. Also, trust documentation if the property is held in a trust.

MAXIMUM ASSESSED VALUE - The maximum assessed value of the domicile (after any abatements) is not greater than the maximum assessed value for qualification for the circuit breaker income tax credit under M.G.L Chapter 62, Section 6, subsection k, as adjusted annually by the department of revenue.

EXEMPTION AMOUNT - 50% (half) of what was granted from the state for the circuit breaker income tax credit (line 17 on Schedule CB or line 44 on Form 1).

Click here for - STEP exemption application form

Click here for - STEP Home Rule Petition/Order

Click here for information on the Massachusetts Circuit Breaker Tax Credit Overview

Community Preservation Act - (CPA Exemption for low income persons of any age or low to moderate income seniors 60yo+ as of January 1, 2023)

This surcharge can be deducted from Property Taxes if a homeowner qualifies under the State income limits which change annually. This is a Household income qualifying exemption, not an owner income qualifying (the total income of the residents domiciled there).

OWNERSHIP & DOMICILE - Applicant must occupy the property as the primary residence as of January 1, 2023. May be (1) sole owner, (2) co-owner, (3) life tenant or (4) trustee with sufficient beneficial interest in property under terms of trust.

INCOME REQUIREMENTS - Applicant and each co-owner must supply household income for the calendar year before January 1, 2023 at or below the limit for that owner’s household type and number (see chart on application for specific formula by household type). For property subject to trust, each co-trustee must meet income standard. Annual income limit for household type and size cannot exceed the area wide medium income set by the US Department of Housing and Urban Development (HUD) which changes annually.

DOCUMENTATION REQUIRED - Copies of federal and state income tax returns are required to verify income reported for each qualifying household member.

Click here for CPA Exemption information and application


VETERANS EXEMPTIONS

Clauses 22, 22A, 22B, 22C, 22D, 22E, 22F and 22H of Section 5 of Chapter 59 provide exemptions to certain veterans who were not dishonorably discharged and who meet certain residency requirements, and their spouses, surviving spouses or surviving parents. All eligibility requirements (residency, domicile, ownership, service-connected disability or awards) must be met as of July 1 of the tax year. Veterans exemptions are not income or assets restricted. Applications are due by the April 1st, 2024 deadline. Surviving spouses may be eligible to receive the exemption for the deceased qualified veteran (Clause 22 and 22D must remain unmarried to be granted the exemption).

Clause 22A, 22B, 22C, 22E and 22F exemptions are prorated for a domicile greater than a single-family house. The exemption is the same percentage of the tax as the part of the house occupied by the veteran, or if deceased, the surviving spouse. For example, 50% if one unit of a two-family house is occupied by the veteran or surviving spouse.

For the required disability rating letter which shows a summary of disability percentage from the Department of Veterans Affairs Benefits Office, please call 1(800)827-1000 or you could request it via the Department of Veterans website.

Clause 22 - (Disabled Veteran with Service Connected Disability of 10% or more but under 100%, Veterans Awarded Purple Heart or surviving spouses, who never remarried, of qualified veteran)

Applicants, who were not dishonorably discharged, must have a service connected disability rating of 10% or greater but under 100% for Clause 22. Surviving spouses of veterans with service connected disabilities at time of death are also eligible. Exemption amounts begin at $400 for veterans with at least a 10% rating. Certification of a war-service connected disability from the Veterans Administration and separation papers (minimum 10% disability) are required for first time fillers unless the disability rating changes.

EXEMPTION AMOUNT - The exemption amount begins at $400 and goes up to $800 for FY24.

OWN AS OF JULY 1 - Must own the property as of July 1 2023 or owned by Spouse.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile.  Also must have been domiciled in Massachusetts 6 months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins.

DOCUMENTATION REQUIREMENTS - DD-214 and a copy of your ID for first time fillers, A letter/certificate from the Veterans Administration verifying the extent of the service connected disability as of July 1 of the tax year.

OTHER REQUIREMENTS - Veteran must have been discharged from the armed forces with an honorable discharge.

MISCELLANEOUS - In the case of a husband and wife, both disabled veterans, both can qualify for Clause 22. If the applicant lives in a greater than single family home, they will still receive the full exemption amount. Once an exemption has been granted for a 10% Disability, Purple Heart, or World War I Surviving Spouse documentation is not required for subsequent allowances of the exemption (renewals).

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

Clause 22A - (Veterans Loss or Permanent Loss of Use of One Limb, Medal of Honor/Service Cross recipients or Prisoner of War or surviving spouses of qualified veteran)

EXEMPTION AMOUNT - The exemption amount begins at $750 and goes up to $1,500 for FY24.

OWN AS OF JULY 1 - Applicant must own the property (or owned by spouse) as of July 1 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile.  Also must have been domiciled in Massachusetts 6 months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins.

DOCUMENTATION REQUIREMENTS - DD-214 and a copy of your ID for first time fillers, A letter/certificate from the Veterans Administration verifying the extent of disability as of July 1 of the tax year.

OTHER REQUIREMENTS - (A) Applicant must have suffered the loss or permanent loss of use of one limb or loss of sight of one eye or applicant must have been awarded the Congressional Medal of Honor; Distinguished Service Cross; Navy Cross or Air Force Cross.  (B) Veteran must have been discharged from the armed forces with an honorable discharge.  (C) Surviving spouse of a veteran who met the requirements of this clause will qualify as a surviving spouse under this Clause and need only provide documentation the first year of filing.

MISCELLANEOUS - Once an exemption has been granted for the above, documentation is not required for subsequent allowances of the exemption (renewals). If applicant lives in a greater than single family home, a proportionate amount of the exemption will be granted according to the number of living units in the property.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

Clause 22B - (Veterans Loss or Permanent Loss of Use of two Limbs or surviving spouses of qualified veteran)

EXEMPTION AMOUNT - The exemption amount begins at $1,250 and goes up to $2,500 for FY24.

OWN AS OF JULY 1 - Applicant must own the property (or owned by spouse) as of July 1, 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile.  Also must have been domiciled in Massachusetts 6 months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins.

DOCUMENTATION REQUIREMENTS - DD-214 and a copy of your ID for first time fillers, A letter/certificate from the Veterans Administration verifying the extent of disability as of July 1 of the tax year.

OTHER REQUIREMENTS - (A) Applicant must have suffered the loss or permanent loss of use of two limbs or loss of sight of both eyes.  (B) Veteran must have been discharged from the armed forces with an honorable discharge.  (C) Surviving spouse of a veteran who met the requirements of this clause will qualify as a surviving spouse under this Clause and need only provide documentation the first year of filing.

MISCELLANEOUS - Once an exemption has been granted for the above, documentation is not required for subsequent allowances of the exemption (renewals). If applicant lives in a greater than single family home, a proportionate amount of the exemption will be granted according to the number of living units in the property.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

CLAUSE 22C - (Veterans with total disability & qualifying for Specially Adapted Housing or surviving spouses of qualified veteran)

EXEMPTION AMOUNT - The exemption amount begins at $1,500 and goes up to $3,000 for FY24.

OWN AS OF JULY 1 - Applicant must own property (or owned by spouse) as of July 1, 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile.  Also must have been domiciled in Massachusetts 6 months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins.

DOCUMENTATION REQUIREMENTS - DD-214 and a copy of your ID for first time fillers, A letter/certificate from the Veteran Administration verifying the extent of disability as of July 1 of the tax year.

OTHER REQUIREMENTS - (A) Applicant must have suffered in the line of duty, permanent and total disability and have received assistance in acquiring “Specially Adapted Housing”.  (B) Veteran must have been discharged from the armed forces with an honorable discharge.  (C) Surviving spouse of a veteran who met the requirements of this clause will qualify as a surviving spouse under this Clause and need only provide documentation the first year of filing.

MISCELLANEOUS - Once an exemption has been granted for the above, documentation is not required for subsequent allowances of the exemption (renewals). If applicant lives in a greater than single family home, a proportionate amount of the exemption will be granted according to the number of living units in the property.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

CLAUSE 22D - (Surviving Spouse, who never remarried, of service members or guardsmen who died or were presumed dead in a combat zone during active duty)

EXEMPTION AMOUNT - TOTAL EXEMPTION

OWN AS OF JULY 1 -Property must be applicant’s domicile. Also must have been domiciled in Massachusetts 6 months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins. 

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile as of July 1, 2023. A surviving spouse must have lived in Massachusetts for at least 2 consecutive years before the tax year begins. If not, the deceased military or guard member or veteran had to have been domiciled in Massachusetts for at least 6 consecutive months before entering the service.

DOCUMENTATION REQUIREMENTS – DD 1300 Report of Casualty and a copy of your ID.

MISCELLANEOUS - (A) Applicant must be a surviving spouse of a soldier/sailor or guardsman who lost their life from injury or disease due to being in combat zone, or who are missing in action and presumed dead due to combat. (B) Once an exemption has been granted for the above, documentation is not required for subsequent allowances of the exemption (renewals). (C) Applicant must remain unmarried as of July 1.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

Clause 22E - (Veterans-100% Disability/100% pay rate due to being unemployable or surviving spouses of qualified veteran)

EXEMPTION AMOUNT - The exemption amount begins at $1,000 and goes up to $2,000 for FY24.

OWN AS OF JULY 1 - Applicant must own the property (or owned by spouse) as of July 1, 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile as of July 1, 2023.  Also must have been domiciled in Massachusetts 6 months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins. 

DOCUMENTATION REQUIREMENTS - DD-214 and a copy of your ID for first time fillers, A determination of 100% disability from the Veterans Administration which is required annually. If the veteran does not have 100% evaluated rating but is deemed to be considered totally or permanently disabled due to service-connected disabilities and/or is entitled to 100% level of disability pay rate due to being unemployable, they are determined to be qualified to receive this exemption.

OTHER REQUIREMENTS - (A) Applicant must be 100% service connected disabled or be incapable of working. (B) Veteran must have been discharged from the armed forces with an honorable discharge. (C) Surviving spouse of a veteran who met the requirements of this clause will qualify under this Clause and need only provide documentation the first year of filing.

MISCELLANEOUS - If the applicant lives in a greater than single family home, a proportionate amount of the exemption will be granted according to the number of living units in the property.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

Clause 22F - (Veteran with service-connected paraplegia or 100% disability rating due to service-connected blindness or surviving spouse of qualified veteran)

EXEMPTION AMOUNT - TOTAL EXEMPTION.

OWN AS OF JULY 1 - Applicant must own the property (or owned by spouse) as of July 1, 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile as of July 1, 2023.  Also must have been domiciled in Massachusetts 6 consecutive months prior to entering the service or Massachusetts resident at least 5 consecutive years before the tax year begins. 

DOCUMENTATION REQUIREMENTS - DD-214 and a copy of your ID for first time fillers, A determination of 100% disability from the Veterans Administration which is required annually.

OTHER REQUIREMENTS - (A) Applicant must be 100% service connected disabled and be incapable of working. (B) Veteran must have been discharged from the armed forces with an honorable discharge. (C) Surviving spouse of a veteran who met the requirements of this clause will qualify under this Clause and need only provide documentation the first year of filing.

MISCELLANEOUS - If the applicant lives in a greater than single family home, a proportionate amount of the exemption will be granted according to the number of living units in the property.

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.

Clause 22H - Gold Star Parent

EXEMPTION AMOUNT - TOTAL EXEMPTION.

OWN AS OF JULY 1 - Applicant must own the property as of July 1, 2023.

DOMICILE AS OF JULY 1 - Property must be applicant’s domicile as of July 1, 2023. A surviving parent or guardian must have lived in Massachusetts for at least 5 consecutive years before the tax year begins. If not, the deceased military or guard member or veteran had to have been domiciled in Massachusetts for at least 6 consecutive months before entering the service.

DOCUMENTATION REQUIREMENTS – DD 1300 Report of Casualty and a copy of your ID.

MISCELLANEOUS - (A) Applicant must be a Parent or Guardian of a military soldier/sailor or guardsman on active duty who lost their life from injury or disease due to being in combat zone, or who are missing in action and presumed dead due to combat. (B) Once an exemption has been granted for the above, documentation is not required for subsequent allowances of the exemption (renewals).

MULTIPLE OWNERS - If there are multiple owners of the property and one files for an exemption, the applicant will still receive the total exemption amount provided they meet all other requirements.

PROPERTY IN TRUST - When a property is held in trust with multiple trustees only the applicant, not the co-trustees, must meet the requirements for the exemption. In addition, such applicant upon qualifying is eligible for the full exemption amount. The applicant MUST be both a trustee and a beneficiary to qualify for the exemption. Trust documentation must be provided, including any amendments, and the schedule of beneficiaries.
 


Motor Vehicle Excise Exemptions - For both Non-Veterans and Veterans

Individuals, who qualify for exemptions from the motor vehicle excise for the non-business use vehicles they own and register, and the following persons acting on their behalf, may apply to the assessors:

•A qualifying owner’s spouse if the vehicle is jointly owned.

•A qualifying owner’s surviving spouse, executor under a will, or administrator of the estate.

The exemption may be applied to only one vehicle of the owner’s choice.

Disabled & Blind Non-Veterans – Vehicles owned and registered by some disabled and blind individuals for their personal use (not business) are exempt from motor vehicle excise. To qualify, a physician must sign and supply the State Form MVU-33 to the Assessors Office indicating that the individual:

•Lost both legs or both arms.

•Had a permanent impairment of vision meeting certain specifications in both eyes.

The exemption is based on whether the individual meets these disability standards, not whether the person has or qualifies for a handicapped plate under RMV regulations.

Disabled & Blind Veterans – The veteran must have been honorably discharged from peacetime or wartime military service. The veteran must be disabled due to that service according to the Veterans Administration who must certify that due to service the veteran:

•Has lost at least one foot or hand,

•Has a permanent impairment of vision meeting certain specifications in at least one eye.

•Is 100% disabled as certified by the Veteran's Administration.

•Or the Medical Advisory Board within the RMV has determined that the veteran is as permanently disabled and the RMV has issued a disabled veteran plate. If a person chooses not to have a DV plate, they can supply the evaluation/granted letter from the RMV medical advisory board.

Prisoners of Wars & Surviving Spouses – A vehicle owned and registered by a former prisoner of war or their surviving spouse (until remarriage), are exempt from one personal (non-business use) vehicle  excise tax if supplied with the VA’s discharge documents stating the veteran was held as a prisoner of war.

A veteran who was a prisoner of war and owns more than one vehicle may have the exemption applied to the vehicle of choice. A full exemption is granted even if the veteran is not the sole owner of the
vehicle, e.g., co-owns it with his or her spouse.

Massachusetts Domiciliary Military Personnel – A vehicle owned and registered by military personnel who are Massachusetts domiciliaries are exempt from the motor vehicle excise if:

•The service person is on active military duty outside of the US for at least 180 continuous days of the year. If the service person is wounded or killed in an armed conflict, the 180 days limitation does not apply.

A servicemember, guardsman or reservist who qualifies and owns more than one vehicle may have the exemption applied to the vehicle of their choice. A full exemption is granted even if the servicemember, guardsman or reservist is not the sole owner of the vehicle, e.g., co-owns it with his or her spouse. The surviving spouse of the servicemember, guardsman or reservist does not qualify for an exemption.

Non-Massachusetts Domiciliary Military Personnel – Under the federal Service-members Civil Relief Act. 50 U.S.C. App. 571, any vehicle owned and registered by military personnel who are not Massachusetts residents are exempt from excise tax if the commanding officer of the service person certifies that the person is a domiciliary of another state and is stationed in MA due to orders. In addition to the service members vehicles, vehicles owned and registered by the service person’s spouse if domiciled with the service person or in the same state, as documented by the service member’s commanding officer are also exempted.

No vehicle used for business or trade purposes are eligible to receive the exemption.


Additional Information

Click here for - Information required when filling for an income qualifying Exemption

Click here for - Information required when filling for a Veterans Exemption

Click here for - The Veterans Benefit Website to request a summary rating disability letter

Click here for - Form M-4506 Request for copy of tax returns

Click here for - Motor Vehicle Excise Exemption Form MVU-33 (for non-veterans)

Additionally, the City has a Senior Work-Off Program that is available for income qualifying seniors 60 years of age or older, which is managed by the Council on Aging, for participants to volunteer and offer their skills related services within City departments. The hours worked (up to 100 hours limit) would result in a discount off of your taxes. Please contact the Council on Aging at (978)744-0924 for more information and to submit an application starting every January.

SALE OF DOMICILE: If you are selling your domicile, you should make your attorney aware that you receive a property tax exemption that reduces the tax owed for the fiscal year. The sale is a private financial transaction and as a party, you are responsible for seeing that the exemption is properly credited at the closing, through escrow or other arrangements, when the parties make adjustments for local property taxes or charges. The City is not responsible for seeing that you and the buyer allocate the property taxes so you get the benefit of the exemption. This information is important to the new buyers so they understand the difference in taxes they will be responsible for when the exemption is no longer applicable.

 

 

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