Property Tax in Boston, MA: Rates, Exemptions, and Deferrals

Boston property tax is calculated by multiplying your property’s assessed value by the applicable rate per $1,000. For fiscal year 2026, the residential rate is $11.58 and the commercial, industrial, and personal property rate is $25.96.¹ A home assessed at $800,000 would owe roughly $9,264 before any reductions. If you own and live in the home, the residential exemption can shave up to $4,353.74 off that bill, and additional exemptions exist for seniors, veterans, and others.²

How Your Bill Is Calculated

The Assessing Department sets the full and fair cash value of every parcel as of January 1 each year.³ That value reflects what the property would sell for in a normal transaction between a willing buyer and seller, not a distressed sale.

Boston classifies property as residential, commercial, industrial, or personal, and each class carries its own rate.⁴ The split is wide. Commercial and industrial owners pay $25.96 per $1,000 for FY2026, more than double the residential rate of $11.58.¹ To estimate your bill, divide your assessment by 1,000 and multiply by the rate for your property class, then subtract any exemptions you qualify for.

The Residential Exemption

If you own property in Boston and live in it as your primary home, the residential exemption is the single biggest break available. For FY2026 it saves qualifying homeowners up to $4,353.74.²

The exemption subtracts 35% of the average assessed value of all residential parcels in Boston from your home’s assessed value before the tax rate is applied.⁵ Your taxable value drops, and your bill drops with it. To qualify, the property must be the principal residence you report on your income tax return. Investment properties, second homes, and units where the owner lives elsewhere don’t qualify.

One limit: the exemption cannot reduce your taxable value below 10% of the full assessed value.⁵ Most homeowners never touch that floor, but owners of lower-valued condos might. If you think you should be receiving the exemption but aren’t, apply in writing to the Assessing Department by the abatement deadline.

Exemptions for Seniors, Veterans, and Others

Massachusetts law provides personal property tax exemptions on top of the residential exemption, though you generally cannot combine multiple personal exemptions on the same property.

Senior Exemption

Homeowners who turned 70 before the fiscal year began may qualify under Clause 41C for $4,000 off their taxable valuation or $500 off their tax bill, whichever is larger.⁶ Boston has the authority to double that amount and lower the age cutoff to 65 by city vote.

Income limits apply. Prior-year gross income must fall below $13,000 if single or $15,000 if married, with deductions allowed for Social Security and certain government pensions. Cities can raise the caps to $20,000 and $30,000.⁶

Veteran Exemptions

Veterans with service-connected disabilities receive exemptions that vary with the severity of the disability. The basic Clause 22 exemption reduces taxable value by $2,000, and higher amounts apply for veterans who lost limbs, suffered significant disability, or received certain military honors. Surviving spouses qualify as long as they remain unmarried and continue to live in the home.⁶

Other Qualifying Groups

Exemptions also extend to people who are legally blind and to minor children of a deceased parent. Applications for personal exemptions are due by April 1 of the fiscal year or within three months after the tax bill is sent, whichever is later.⁷

Senior Tax Deferral

Seniors who need cash-flow relief rather than a modest reduction can defer their property taxes entirely under Clause 41A. Homeowners 65 and older can postpone payment until the home is sold or transferred.⁶

You must have lived in Massachusetts for at least 10 years and owned and occupied the home for at least five. Prior-year gross income cannot exceed $20,000 unless Boston adopts a higher cap.⁶

Deferred taxes accrue interest at 8% per year, or lower if the city sets a reduced rate, and the full balance comes due when the property changes hands.⁶ A homeowner deferring $10,000 a year over a decade could accumulate tens of thousands in interest. The program keeps you in your home but draws down your equity.

The Community Preservation Act Surcharge

Every Boston property tax bill carries a 1% Community Preservation Act surcharge on top of the regular tax.⁸ It funds affordable housing, historic preservation, open space, and recreation, and it applies to both residential and commercial parcels.

Low-income owners and low- or moderate-income seniors can apply for a CPA surcharge exemption through the Assessing Department. The FY2026 exemption application is due by April 1, 2026, with eligibility based on 2024 income.⁸

When Bills Are Due

Boston bills property taxes quarterly, with payments due on:⁹

August 1 (first quarter)
November 1 (second quarter)
February 1 (third quarter)
May 1 (fourth quarter)

If a due date lands on a weekend or holiday, the deadline moves to the next business day. The first two quarterly bills are preliminary, calculated from the prior year’s assessment and rate. The third and fourth bills reflect the current year’s actual assessment and newly certified rate, which is why the February bill often jumps or drops.

Payments go through the city’s online portal, the lockbox address printed on the bill, or the Collector-Treasurer’s office at City Hall.

What Happens If You Pay Late

A missed payment triggers 14% annual interest on the unpaid balance, calculated from the original due date.¹⁰ That rate makes delinquent property taxes one of the most expensive debts a homeowner can carry.

If taxes remain unpaid at the end of the fiscal year, the city certifies the debt to a tax title account, the interest rate climbs to 16%, and the Collector-Treasurer records a tax lien at the Suffolk County Registry of Deeds within 60 days. After six months of nonpayment, the city can petition the Land Court to foreclose. Ignoring the court’s notice waives your right to contest, and ownership can transfer to the city without a hearing.¹¹

You can redeem the property at any time before foreclosure by paying the full tax title balance plus 8% annual interest and all additional charges.¹² Acting early saves thousands in compounding interest.

Challenging Your Assessment

If you believe your property is overvalued or assessed unfairly compared with similar homes, file for an abatement using State Tax Form 128, available from the Boston Assessing Department.¹³

Filing Deadline

You can file only after your third-quarter tax bill has been issued, typically in late December. For FY2026, the deadline is February 2, 2026.¹⁴ The statute ties the deadline to the last day you can pay the first actual installment without interest; if that date falls on a weekend or holiday, it rolls to the next business day.⁷ Miss the deadline and you lose your right to appeal for the entire fiscal year.

Building a Strong Application

Your application needs to state what you believe the property is worth and explain why. Vague complaints go nowhere. What works is concrete evidence: recent sale prices of comparable homes nearby, an independent professional appraisal, photos of damage or deferred maintenance that the assessment doesn’t reflect, and corrections to any factual errors in the city’s record such as square footage or bedroom count.

Pull the city’s property record for your parcel before filing. Clerical errors are more common than people expect, and fixing one can be the simplest path to a lower assessment. Use certified mail or get a date-stamped receipt if you file in person.

Review and Appeal

The Board of Assessors has three months from your filing date to act. If the board doesn’t decide within that window, the application is deemed denied. A denial, actual or deemed, can be appealed to the Massachusetts Appellate Tax Board within three months.

ATB filing fees scale with assessed value:¹⁵

$20,000 or less: $10
$20,001 to $100,000: $50
$100,001 to $999,999: $100
$1,000,000 or more: $0.10 per $1,000 of assessed value, capped at $5,000

Most Boston homes land in the $100 tier. You can choose an informal procedure, where the ATB serves the appeal on the assessors for you, or a formal procedure, where you handle service. Either way, the city’s valuation is presumed correct, and the burden is on you to prove otherwise.

Deducting Boston Property Tax Federally

You can deduct Boston property tax on your federal return as part of the state and local tax deduction. For the 2026 tax year, the SALT cap is $40,400 for most filers and $20,200 for married filing separately.¹⁶ That ceiling covers your property taxes, state income taxes, and other deductible state or local taxes combined.

The deduction phases down for higher earners. If your modified adjusted gross income exceeds $505,000 ($252,500 for married filing separately), the $40,400 cap shrinks by 30 cents for every dollar above the threshold.¹⁶ You also need to itemize rather than take the standard deduction. For many Boston homeowners with high property values and Massachusetts income tax to deduct, the combined SALT total approaches or exceeds the cap, so comparing itemized and standard each year is worth the time.

1
City of Boston. FY26 Property Taxes
2
City of Boston. Residential Exemption
3
General Court of Massachusetts. Massachusetts Code Chapter 59 Section 38 – Fair Cash Valuation; Classification of Assessed Valuation; Taxable Valuation
4
City of Boston. How We Tax Your Property
5
General Court of Massachusetts. Massachusetts Code Chapter 59 Section 5C – Exemptions for Residential Real Property
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General Court of Massachusetts. Massachusetts Code Chapter 59 Section 5 – Property; Exemptions
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General Court of Massachusetts. Massachusetts Code Chapter 59 Section 59 – Abatement Applications
8
City of Boston. Community Preservation Act
9
City of Boston. How to Pay Your Real Estate Taxes
10
General Court of Massachusetts. Massachusetts Code Chapter 59 Section 57 – Bills for Taxes; Due Date; Interest
11
City of Boston. What Is the Tax Title Process
12
General Court of Massachusetts. Massachusetts Code Chapter 60 Section 62 – Redemption of Land Taken or Sold for Taxes
13
Massachusetts Department of Revenue. Property Tax Forms and Guides
14
City of Boston. How to File For a Real Estate Tax Abatement
15
Massachusetts Appellate Tax Board. ATB Filing Fee Schedule
16
Office of the Law Revision Counsel. 26 USC 164 – Taxes