- Home
- Departments
- Finance Department
- Assessment
- Tax Relief & Exemptions
Tax Relief & Exemptions
The Circuit Breaker
For tax years beginning on or after January 1, 2001, certain taxpayers age 65 or older may be eligible to claim a refundable credit on their state income taxes for the real estate taxes paid during the tax year on the residential property they own or rent in Massachusetts that is used as their principal residence. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest. For further information relative to the calculation and eligibility of the circuit breaker income tax credit, follow this link to the Department of Revenue website:
- State Department of Revenue (DOR) Circuit Breaker Application
Exemptions
- Massachusetts Veterans Services
- Massachusetts Commission for the Blind
- Exemption Application
- Tax Deferral Application
- Exemption Guide (PDF)
Overview on Exemptions
An exemption is a release or discharge from the obligation to pay all or a portion of a local property tax. Exemptions are established by the legislature for particular categories of property or persons and are generally found in General Laws Chapter 59 Section 5. The exemption is a privilege and any claimant must demonstrate that it clearly qualifies.
Exempt Persons
Persons who may qualify for exemptions include disabled veterans, blind persons, surviving spouses, and seniors.
Qualification Date
Exempt status is determined as of July 1st. Ownership, occupancy, use, age or any other eligibility criteria must be met as of that date.
Filing Date
Exemption applications must be filed with the assessors on or before December 15th or 3 months after actual (not preliminary) tax bills are mailed for the fiscal year if later.
Town of Reading Eligibility Requirements for Personal Real Estate Exemptions
Bold indicates a change from prior years.
Elderly
Clause | Basic Qualifications | Maximum Income | Maximum Assets
Other Than Domicile |
Exemption Amount |
---|---|---|---|---|
17D | Age 70 or older | N/A | $40,000 | $175 |
41C | Age 65 or older - Single | $20,000 | $40,000 | $750 |
41C | Age 65 or older - Married | $30,000 | $55,000 | $750 |
Veterans
Clause | Basic Qualifications | Maximum Income | Maximum Assets
Other Than Domicile |
Exemption Amount |
---|---|---|---|---|
22 | 10% Wartime Service Disability or Purple Heart | N/A | N/A | $400 |
22A | Loss of foot, hand, or eye |
N/A | N/A | $750 |
22B | Loss of two limbs or eyes | N/A | N/A | $1,250 |
22C | 100% disability with specially adapted housing | N/A | N/A | $1,500 |
22D | Surviving spouses of soldiers, sailors or guardsmen who died due to injury or disease from being in combat or missing and presumed dead to combat. |
N/A | N/A | 100% |
22E | 100% Disability
10% Service |
N/A | N/A | $1,000 |
22F | Paraplegic due to war injury | N/A | N/A | 100% |
Other
Clause | Basic Qualifications | Maximum Income | Maximum Assets
Other Than Domicile |
Exemption Amount |
---|---|---|---|---|
37 | Legally Blind |
N/A | N/A | $500 |
17D | Surviving spouse or orphaned minor child |
N/A | $40,000 | $175 |
42 - 43 | Surviving spouse or orphaned minor of Police Officer or Fire Fighter killed in line of duty |
N/A | N/A | 100% |
18 | An individual by reasons of age infirmity and poverty
can not fully contribute to their tax obligation as
deemed by the Assessors |
N/A | N/A | Varies |
Deferred Tax Payment
Clause | Basic Qualifications | Maximum Income | Maximum Assets
other than domicile |
Exemption Amount |
---|---|---|---|---|
41A | Age 65 or older | $40,000 | N/A | Varies |
Deferred taxes accumulate with simple interest at 8% as a lien on the property until it is sold or the owner(s) is deceased then the interest is 16%.