Money Left on the Table
While appeals get the spotlight, property tax exemptions and abatements offer another powerful way to reduce your tax burden. Many property owners miss these opportunities and overpay by hundreds or thousands annually.
Property tax appeals aren't your only weapon against high tax bills. Exemptions and abatements can provide substantial, long-term savings—but only if you know they exist and how to qualify for them.
Exemptions vs. Abatements: What's the Difference?
Property Tax Exemptions
Definition: Permanent reductions that remove a portion of your property's assessed value from taxation.
Duration: Typically ongoing as long as you qualify.
Property Tax Abatements
Definition: Temporary reductions offered to encourage specific activities like improvements or economic development.
Duration: Usually time-limited (5-15 years).
Common Property Tax Exemptions
Homestead Exemptions
Who Qualifies: Primary residence owners
Typical Savings: $1,000-5,000 annually in Massachusetts
- Must be your primary residence as of January 1st
- Some areas have income limitations
- Usually requires annual application
- Available in most Massachusetts municipalities
Senior Citizen Exemptions
Who Qualifies: Property owners 65+ meeting income requirements
Typical Savings: 20-50% reduction in tax bill
- Age 65+ by July 1st of tax year
- Income limits vary by municipality
- Must own and occupy property for required period
- May have asset limitations
Veteran Exemptions
Who Qualifies: Veterans, disabled veterans, and surviving spouses
Typical Savings: $400-2,500 annually depending on service
- Must have served during qualifying periods
- Larger exemptions for disabled veterans
- Surviving spouses may qualify
- May have income and asset limits
Disability Exemptions
Who Qualifies: Property owners with qualifying disabilities
Typical Savings: Varies by municipality and disability rating
- Must meet state disability criteria
- Income limitations typically apply
- May require medical documentation
- Can be combined with other exemptions
Common Property Tax Abatements
Economic Development Abatements
Encourage business investment and job creation in targeted areas.
- New construction or substantial improvements
- Job creation requirements
- Usually 5-15 year terms
- May cover all or portion of improvement value
Historic Preservation Abatements
Incentivize restoration and preservation of historic properties.
- Property must be historically significant
- Improvements must meet preservation standards
- Typically covers rehabilitation costs
- Terms vary but often 10-20 years
Green Building Abatements
Promote environmentally sustainable construction and improvements.
- Must meet energy efficiency standards
- LEED certification often required
- Solar panel installations may qualify
- Usually covers percentage of green improvements
How to Find Available Programs
Research Steps
- Check Municipal Websites: Most cities and towns list available exemptions and abatements online
- Contact Assessor's Office: Call directly to ask about programs you might qualify for
- Review State Resources: Massachusetts Department of Revenue provides comprehensive exemption guides
- Ask Your Tax Professional: CPAs and tax advisors often know local programs
- Check with FairTaxer: We can identify potential exemptions during our property review
Application Tips for Success
Best Practices
- Apply Early: Don't wait until deadlines approach
- Document Everything: Keep thorough records of qualifications
- Follow Up: Ensure applications are processed correctly
- Reapply When Required: Some exemptions need annual renewal
- Understand Timing: Know when exemptions take effect
- Appeal if Denied: You often have appeal rights
Real Savings Examples
Example 1: Senior Homeowner
Property Value: $350,000
Original Tax Bill: $8,750
Senior Exemption: 20% reduction
New Tax Bill: $7,000
Annual Savings: $1,750
Example 2: Veteran Homeowner
Property Value: $400,000
Original Tax Bill: $10,000
Veteran Exemption: $1,500 reduction
Homestead Exemption: $1,000 reduction
Annual Savings: $2,500
Get Help Finding Your Exemptions
FairTaxer doesn't just help with appeals—we also identify exemptions and abatements you might be missing. Our comprehensive review can uncover multiple ways to reduce your property tax burden.
Common Mistakes to Avoid
- Missing Deadlines: Many exemptions have strict application periods
- Assuming You Don't Qualify: Requirements change—check regularly
- Forgetting to Reapply: Some exemptions require annual renewal
- Not Reading the Fine Print: Understand all qualification requirements
- Applying for Only One: You can often combine multiple exemptions
- Not Keeping Records: Maintain documentation for audits or appeals
The Bottom Line
Property tax exemptions and abatements represent money that's rightfully yours—don't leave it on the table. While appeals address over-assessments, exemptions and abatements can provide ongoing, predictable savings year after year.
Action Items
- Research exemptions available in your municipality
- Gather required documentation for qualifying programs
- Submit applications before deadlines
- Mark your calendar for renewal dates
- Consider a comprehensive property tax review
Don't stop at appeals—explore every avenue to reduce your property taxes. Exemptions and abatements could save you thousands while you sleep.