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Real Estate – Navigating Boston Property Taxes

Real Estate – Navigating Boston Property Taxes

Navigating Boston’s real estate taxes can be complex, but it’s essential for property owners and investors in the city. Understanding property assessments, tax rates, and available exemptions and abatements is crucial for managing your tax liability. If you have questions or concerns about your property tax bill, it’s advisable to seek guidance from the City of Boston’s Assessing Department,  your Realtor, or a qualified tax professional. Staying informed about Boston’s real estate tax policies can help you make informed decisions, and ensure compliance with the city’s tax regulations.

Tax Exemptions and Abatements

The City of Boston offers various exemptions and abatements to help alleviate the burden of property taxes for certain individuals. Here are a few common examples:

  1. Residential Exemption: This exemption is designed to provide relief to Boston residents who use their property as their primary residence. It reduces the taxable value of a property, effectively lowering the property tax bill for eligible homeowners. This amount is approximately $3,500 off your yearly Real Estate Taxes.
  2. Senior Citizen Exemption: Boston offers tax relief to eligible senior citizens. To qualify, the homeowner must meet specific age and income requirements.
  3. Veterans Exemption: Veterans who own property in Boston may be eligible for a property tax exemption. The amount of the exemption depends on various factors, including the veteran’s service-connected disability.
  4. Community Preservation Act (CPA) Exemption: Boston adopted the Community Preservation Act, which imposes a surcharge on property taxes to fund affordable housing, historic preservation, and open space. However, certain low-income homeowners may be eligible for an exemption from this surcharge.

Tax Rate:

The tax rate is set by the city government and is expressed in dollars per thousand dollars of assessed value. This rate is then applied to the assessed value to determine the annual property tax bill. It’s important to note that different areas within Boston may have varying tax rates. The current tax rate for fiscal year 2023 in Suffolk County is $10.74.