Reasons to Buy in Boston | The Residential Tax Exemption

 

 

It’s the most wonderful time of year! Tax season is in full swing. While you’re busy filing and figuring things out, here’s something to consider:

• If you own and occupy a property as a primary resident in the City of Boston you may qualify for a residential tax exemption that could result in significant savings.
• For FY 2021: the residential exemption saves qualified Boston homeowners $3,153.02 on their tax bill.
• A residential exemption reduces your tax bill by excluding a portion of the value of the property from taxation.
• How’s it calculated? The residential exemption is the dollar value that is exempt from taxation. For example: if the residential exemption value were $100,000, a home with an assessed value of $300,000 would be taxed on just $200,000 of value. This exemption value, when multiplied by the current residential tax rate, represents the dollar savings amount of the exemption.
• Last December, the City of Boston set the FY 2021 residential tax rate at $10.67 per thousand in assessed value.

 

For Example...

A buyer purchases a condo in Back Bay which will be her primary residence.

The City of Boston assessing department values the condo at $600,000. 

The tax bill is calculated as follows:

$10.67  tax rate per thousand

x 600                                          

$6,402  total tax bill 

Deduct the residential exemption of $3,153.02 and the effective annual tax bill will be only $3,248.98 

 

 

 

 

• For current homeowners your 3^rd quarter tax bill will show 2021 assessments, tax rates and residential exemptions.
• Your primary residence is the address from which you file your state income tax return.
• If you think you might may qualify for a residential exemption, please be aware that the application must be filed with the assessing department by April 1 2021.
• Check out the additional requirements here

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Broad Street Boutique Realty is a real estate firm located in Boston, Massachusetts. We represent clients in the sale, purchase or lease of properties in Massachusetts and New Hampshire. Visit us at www.broadboutique.com