Many residents are eligible for a property tax break. Are you? Find out.
Every year, Somerville residents are pushed out of the city by rising housing costs. (See Gentrification in Somerville [link to the post on our web site] for more on that). As the Green Line comes in, the problem will likely get worse.
But there are laws that can lower your taxes if you’re eligible. Here are some that we know of, with links to web pages where you can find out more:
Residential Exemption
If you own the house you live in, you can get a “residential exemption” that makes almost $150,000 of the value of your house tax-free. That means you’ll save more than $1,600 on your taxes this year!
We took this information from the city Assessors’ web site. Look in the lower left.
You fill out a form that you can download from the city’s website.
The exemption applies to your primary residence—it’s not for absentee landlords.
Senior Circuit Breaker
If you’re 65 or older and your housing costs are high, regardless of whether you rent or own, you may qualify for the state’s Senior Circuit Breaker. It’s for owners who spend over 10% of their income on property taxes + half of their water and sewer charges, and also for renters who spend over 40 percent of their income on rent.
(Renters can count 25% of their rent as paying the owner’s property taxes, which means they qualify for the credit if their rent is more than 40% of their income.)
There are income limits but they are fairly high.
The way it works is, you pay the city your full taxes, but then you get a credit on your state income tax.
Maximum credit: $900.
Senior Tax Deferral
This isn’t exactly a tax break, but seniors who earn $40,000 or less can put off paying their property taxes until the property is inherited or sold. Eight percent per year is added to the bill for the property, and the total amount deferred can’t be more than half of the value of the property.
Even so, it can help a lot of seniors stay in their homes. You have to have lived in your house at least five years. It’s described in this table.
Other property tax breaks
That table also shows more possible tax breaks, for disabled vets, seniors, and others.
The column in the table that’s headed “$$$ Amount” shows the maximum tax credit you can get.
The “Asset Limits” do not include the value of your own home.
Do you know of other tax breaks available to Somerville residents? Leave a comment and spread the word!
Posted in Consumer Money Saving, Housing
