By Luis Tejada, Greater Boston Real Estate Broker
If you own a home in Massachusetts, the property tax bill that arrives around the end of December is an important one. It is often the first bill that shows your real tax for the year. It is also a good reminder to check one thing: are you getting the residential exemption?
Many owners in Boston, Chelsea and Everett can save thousands of dollars a year with it. Many new owners do not know it exists. Here is how it works.
First, how the tax year works
Cities in Massachusetts use a fiscal year that runs from July 1 to June 30. So fiscal year 2027 (FY2027) runs from July 1, 2026, to June 30, 2027.
Boston is a good example of the calendar. Its FY2027 values are based on the property as of January 1, 2026. Bills come four times a year:
- 1st and 2nd quarter bills are “preliminary.” They are estimates based on last year.
- The 3rd quarter bill, mailed in late December 2026, is the “actual” bill. It is due February 1, 2027.
- The 4th quarter bill is due May 1, 2027. Because that is a Saturday, Boston moves the deadline to Monday, May 3, 2027.
Other cities follow a similar pattern, but dates can differ. Always check your own bill.
What is the residential exemption?
It is a discount for owners who live in their home. State law lets each city choose whether to offer it. The exemption lowers the taxable value of your home by a set amount. A city can set it at up to 35% of the average value of all homes in that city.
It only applies to your principal residence. That means the home you use as your address on your income tax return. You can only get it on one property. Not every city offers it, so ask your assessor.
Boston
- How much: Boston sets the exemption at the full 35%. Last fiscal year, it saved qualified homeowners up to $4,353.74.
- Who qualifies for FY2027: Owners who owned and lived in their home as their main residence on January 1, 2026. Under a recent change, owners who recorded their deed and moved in between January 1 and June 30, 2026, may also be eligible for FY2027.
- Deadline: April 1, 2027.
- How to apply: The form is available after the 3rd quarter bills go out in December. Look up your property in the Boston Property Lookup tool, call Assessing at 617-635-4287, or pick one up at City Hall. You will need to give your Social Security number, which the city uses to confirm you file taxes from that address.
- Keep paying: Pay each bill in full while your application is reviewed. If you are approved, the credit comes later in the year.
Chelsea
- How much: For FY2026, Chelsea’s residential exemption was worth $3,203.68 in tax dollars ($279,066 in assessed value). The FY2026 residential tax rate was $11.48 per $1,000 of value.
- Who qualified for FY2026: Owners who owned and lived in the home as their principal residence on January 1, 2025.
- Documents Chelsea asked for: your Massachusetts state tax return (Form 1), a Massachusetts license or ID, a vehicle registration, and two bills or statements (like electric, gas or bank) that cover January 1, all showing the property address.
- FY2027: The FY2027 amount and form were not posted when we wrote this. Call the Assessor at 617-466-4010 to confirm dates.
Everett
- How it works: Everett offers the exemption for owner-occupied homes. The Mayor and City Council choose the percentage each year.
- Recent years: The Council approved a 25% exemption for FY2025. A local news report estimated savings of about $2,200 on two-family homes and about $3,500 on three-family homes. For FY2026, the proposed rates again used a 25% exemption.
- FY2027: The new rate and amount are usually set late in the year. Call the Assessor at (617) 394-2270 for dates and forms.
Just bought a home?
This is where many people miss out. Your first bills may be based on the prior owner. Read every bill. Then check whether you qualify and when to apply. Missing a deadline can mean waiting another full year.
If you bought a two- or three-family and live in one unit, ask your assessor how the exemption applies to your property. For owner-occupants of multi-families, it can make a real difference in the numbers.
Other ways to lower your bill
- Personal exemptions: Massachusetts also has exemptions for some seniors, veterans, blind residents and surviving spouses. Rules and income limits vary. If you qualify for more than one in Boston, the city applies the one that saves you the most.
- Abatements: If you think your home’s value is too high, you can ask for an abatement. In Boston, the FY2027 deadline is February 1, 2027. Other cities set their own deadline, often the due date of the first actual bill.
Our advice
Put a note on your calendar for when the late-December bill arrives. Look for the exemption line. If it is missing and you live there, call your assessor that week. It is one of the easiest ways to save money as a homeowner.
Thinking about buying? Property taxes are part of your monthly payment. Our affordability guide shows how they fit in.
Sources: City of Boston FY2027 Assessing Calendar; City of Boston, Residential exemption page and FY27 notice; City of Boston FY26 Tax Classification Order; M.G.L. c. 59, § 5C; City of Chelsea Assessor’s Office and FY26 Residential Exemption Application; City of Everett, Residential Exemptions; Citizen Portal report on the Everett City Council (Nov. 25, 2024); Everett Advocate (Dec. 11, 2025). Dollar amounts and dates are from these sources as of November 4, 2026. Always confirm with your city.
Have a question? Call or text Luis at (617) 982-0194, or sign up for free home alerts.
