New Boston Tax Rule Shields Seniors From Losing $1K-$2K Tax Credit

Taxes | June 30, 2026

New Boston Tax Rule Shields Seniors From Losing $1K-$2K Tax Credit

A change to the senior property tax exemption, which was signed into law by Boston Mayor Michelle Wu, is expected to help homeowners on fixed incomes with housing costs.

By Tréa Lavery
masslive.com
(TNS)

A change to the senior property tax exemption implemented in Boston this week is expected to help homeowners on fixed incomes with housing costs.

The change allows the city to adjust the eligibility threshold every year based on inflation, ensuring households do not lose eligibility if their Social Security or retirement income increases. Eligible households can receive a $1,000 to $2,000 exemption on their tax bills.

Lillie Bryan, Boston chapter president at Massachusetts Senior Action Council, said Monday at a signing ceremony that if the rule, known as Clause 41D, had been in effect for the last few years, she likely would have qualified for the exemption.

“This 41D does not really solve the problem,” Bryan said. “But it would help seniors who are struggling with property tax bills right now and it will protect seniors who are already qualified from losing the help that they have now.”

Applicants are eligible for the senior property tax exemption if they are at least 65 years old and own the property where they live as of July 1 of the tax year, have owned and lived on the property for at least five years and lived in Massachusetts for at least 10 years.

Starting in 2027, the eligible income limit will increase from $20,000 to $20,540 for individuals and from $40,000 to $41,080 for married couples. The asset limits, which do not include the value of the property, will increase from $25,980 to $26,687 for individuals and from $55,000 to $56,045 for married couples.

The last time the eligibility thresholds were adjusted was in 2023. Under Clause 41D, the limits will rise annually according to changes in the Consumer Price Index.

For the past few years, Mayor Michelle Wu has sought changes to Boston’s property tax structure to provide relief for struggling homeowners on their rising tax bills, particularly seeking to shift some of the share of property taxes from residential property owners to commercial property owners. She has also sought an overall expansion of the senior property tax exemption.

The City Council has passed a home rule petition to enact Wu’s proposed changes four times, but the proposal has not made it past the state Legislature.

Wu said Monday that signing Clause 41D into law was a win for senior homeowners, but more needed to be done to address the high cost of housing.

“There is no time to waste. Our seniors and communities need help now,” she said. “This is a common sense proposal, a set of issues that many communities across the Commonwealth are fighting for, and we want to make sure that every resident who could be eligible can take advantage of this.”

Photo caption: Boston Mayor Michelle Wu speaks during the Boston Public Schools Valedictorians Luncheon on June 2, 2026 (Boston City TV/YouTube)

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©2026 Advance Local Media LLC. Visit masslive.com. Distributed by Tribune Content Agency LLC.

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