Living in Boston has its perks. The city is full of history and opportunity – from world-renowned universities to top-tier museums and easy access to nature – it’s easy to see why it’s often regarded as one of the most incredible places in the U.S. But owning a property in the thriving city also comes with its challenges, most notably the high cost of living. In fact, Boston is among the top 10 most expensive cities in the country.
The good news is there’s a way to cut some of these costs. Boston residents may qualify for tax abatements and exemptions through the residential property tax exemption, which can save them over $3,000 per year.
Who qualifies for the residential exemption? What steps do you need to take to apply for the program? Let us explain everything you need to know!
How it works
If you’re the owner of your Boston property and call it your primary residence, you may be eligible for the residential exemption. What is it exactly? The residential exemption reduces your tax bill by excluding a portion of your property’s value from taxation. The idea is to shift some of the tax burden away from full-time resident homeowners and onto investment or rental properties owned by people who do not live in them year-round.
Recently, the home rule petition expanded the list of individuals who can apply for exemptions. For homeowners who have purchased their properties before July 1, 2025, it’s now possible to qualify for the 2026 fiscal year.
Who is eligible for the tax exemption
To take advantage of the residential tax exemption, you must have a financial interest in your property (meaning you have to own it or share it with someone else). It’s also possible to get the benefits if you hold a life estate or if your home is held in a trust. However, in this case, you must follow two requirements: you must be the trustee or co-trustee of the trust, or have a sufficient financial interest in the home.
It’s essential to note that an individual can apply for a residential exemption for only one property. However, the good news is you may also qualify for other exemptions (Boston allows personal exemptions for some health issues and other factors), as long as the taxable value of your home is not reduced by more than 10% of its assessed value.
Remember that even if you don’t fit the criteria for getting the residential exemption, you may be able to qualify for an abatement (if you use your property for educational, charitable, literary, religious, scientific, or temperance purposes).
How to apply for the residential exemption
For Fiscal Year 2026, homeowners have until April 1, 2026, to apply for the exemption. To do this, you’ll need to fill out an application, which can be found on the City of Boston’s website. Typically, these applications become available in January, after the city has issued third-quarter tax bills in December. Once you’ve filled it out, you can take it to Boston City Hall, the Assessing Department, or the Taxpayer Referral and Assistance Center. After you’ve applied, you should receive a response within 3 months.
Owning a property in Boston is a significant achievement, and programs like the residential tax exemption offer an excellent solution for managing the city’s high cost of living. If you’re considering buying, selling, or simply want expert advice on making the most of homeownership in Boston, reach out to The Sarkis Team. We’re here to guide you every step of the way!
FAQ
Do I need to reapply for the Boston Residential Tax Exemption every year?
No, once approved, the exemption automatically renews each year.
Can I combine the Boston Residential Tax Exemption with other exemptions like senior or veteran benefits?
Yes, you may qualify for multiple exemptions, but the City will decide which combination provides the greatest savings.
What happens if my Boston Residential Tax Exemption application is denied?
If denied, you’ll receive a notice and have the right to appeal the decision.
How do I apply for a tax exemption in the City of Boston?
To apply for a Boston tax exemption, visit the City of Boston Assessing Department's website and submit the appropriate exemption application form based on your eligibility.