What is the Residential Exemption and Tax Rate in Cambridge, MA?  And Surrounding communities?

Lower your tax bill wih a Residential Exemption!

What is the Residential Exemption and Tax Rate in Cambridge, MA?  And Surrounding communities?

Residential exemptions are specifically designed to alleviate the tax burden on homeowners who use their property as their primary residence, playing a crucial role in maintaining housing affordability for countless residents. Among the towns and Cities that currently have a residential exemption are: Boston, Brookline, Cambridge, Chelsea, Everett, Malden, Somerville, Waltham and Watertown. The tax exemption amounts can change every fiscal year, so please check with the city website. You only need to apply and be approved once, then your exemption will be in place as long as the property remains your primary residence.

What is a Residential Exemption?

The residential tax exemption operates by excluding a specific portion of the assessed property value from the homeowner's property tax bill. To be eligible for the residential tax exemption, homeowners must be legal residents of Massachusetts and fulfill any additional requirements established by the local government. Generally, second homes, rental properties, and vacation homes do not qualify for this exemption.

Residential Exemption in Cambridge, MA?  Yes.

Cambridge, MA residential property taxes are notably low. This is largely attributed to the substantial contributions made by institutions such as MIT, Harvard University, biotech and pharmaceutical industries to the city's budget.

For the fiscal year 2023, the tax rate in Cambridge stands at $5.86 per $1,000 of assessed value. Additionally, homeowners in Cambridge can benefit from a residential tax exemption of $470,823 in the same year.

If you qualify for the full exemption amount, this will result in a reduction of $2,759 in your property taxes for the current year. It's important to note that homeowners must apply for this exemption. The tax exemption may change every fiscal year, so please check with the city website. https://www.cambridgema.gov/iwantto/applyforaresidentialexemption

Which nearby cities and towns offer residential exemption? Boston, Brookline, Chelsea, Everett, Malden, Somerville, Waltham and Watertown.

Residential Exemptions in Somerville, MA?  Yes.

Homeowners who use their properties as their primary residence can qualify for an exemption of up to 35% of the average assessed value of residential parcels.

There are specific qualifications that homeowners must meet to be eligible for this program. In 2023, the property tax rate in Somerville is $10.19 for every $1,000 of assessed value. This can result in potential savings of up to $3,455 per year for homeowners.

Residential Exemptions in Watertown, MA? Yes.

To be eligible for the exemption, taxpayers must meet certain requirements. These include owning and occupying the property as their domicile, which means it serves as their permanent home where they intend to return. Additionally, they must file their taxes, register to vote, register their cars, and complete census information using the property's address. 

To qualify, taxpayers must have owned and occupied their dwelling as of January 1st of the relevant year. If they recently purchased the property, they will become eligible for the exemption in the first fiscal year following their ownership and occupancy date on January 1st. For instance, to qualify for the Fiscal Year 2024 Residential Exemption (July 1, 2023 – June 30, 2024), taxpayers must own and occupy the property on or before January 1, 2023. The Residential Tax Exemption reduces the annual assessment for eligible taxpayers by excluding a fixed value from their bill. In Fiscal Year 2023, this exemption resulted in savings of $3,598.51 for qualified taxpayers.

Residential Exemptions in Boston, MA? Yes.

The residential exemption reduces your tax bill by excluding a portion of your residential property’s value from taxation. Last fiscal year, the residential exemption will save qualified Boston homeowners up to $3,456.50 on their tax bill. For Fiscal Year 2024, you have until April 1, 2024, to file an application.

Residential Exemptions in Arlington, MA?  No.

Residential Exemptions in Belmont, MA?  No.

Residential Exemption in Medford, MA?  No.

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FY23/24 TAX RATE CHART

If you have any questions or concerns, do not hesitate to contact your tax assessor for clarification before submitting your application. Seeking assistance and understanding your options can potentially save you time, money, and alleviate stress associated with property taxes.