By Diana Coldren
Did you know that qualified taxpayers can apply to effectively save up $3,456.50 on their real estate tax-bill for fiscal year 2023!
If the residential exemption does not appear on your Fiscal Year 2023 third quarter tax bill (recently mailed and due Feb. 1), you may still file an application by April 3 for the fiscal year 2023 exemption.
It is not too late to save on your Fiscal Year 2023 Boston Real Estate Taxes! The City of Boston operates on a fiscal year that starts on July 1 and ends on June 30. For Fiscal Year 2023, the maximum portion exempt from taxation is $321,834.26. At a rate of $10.74 per thousand, this translates to a potential savings in real estate taxes of $3,456.50.
According to the City’s Residential Exemption application, “Every taxpayer in the City of Boston who owns residential property as of January 1, 2022 and uses that property as his or her principal residence for their calendar year 2021 for Massachusetts income taxes, may be eligible for the Fiscal Year 2023 residential exemption. In certain circumstances, you may be eligible if you obtained your principal residence between January 1 and July 1, 2022.”
The printable online application is now available and the deadline for submission is Monday April 3, 2023. Even if you have received the exemption in the past, you may want to double check to see if the exemption is in still in effect for your property. It is important to review your tax bill every year to make sure the exemption is in force.
Example: If you qualify, and the total taxable valuation of your home is $2 million you will owe approximately $21,480 ($2,000,000 x tax rate of $10.74 per thousand) without the residential exemption. With the exemption, your taxable valuation may be $2 million minus the fiscal year 2023 residential tax exemption of $321,834 resulting in a total taxable valuation of $1,678,166. The tax owed would be $18,023.50 ($1,678,166 x $10.74 per thousand) resulting in a tax savings of $3,456.50. Please note that this example does not include the Community Preservation Tax or other factors that may impact your individual situation.
How can I apply for the exemption or see if the exemption has been applied for my property?
Visit the City of Boston assessing site at https://www.cityofboston.gov/assessing/search/.
Or use the QR code below to take you to the site with the link to the application. Type in your address, click on the “details” link, and if eligible, click on the link to the application in the abatements/exemptions section. You can also verify if it has already been applied.
Applications need to be mailed to:
1 City Hall Square, Room 301
Boston, MA 02201-2011
or submitted in person at City Hall by the Monday April 3, 2023, deadline. You may have to note the date your deed was recorded. You can find this date online at https://www.masslandrecords.com/suffolk/ or by calling the Suffolk County Registry of Deeds office at (617) 788-8575.
When will I receive the Exemption?
The third Quarter tax bill is the earliest that a resident can confirm that they are receiving a residential exemption. Once an application is approved, you will receive a credit toward your fiscal 2023 taxes. If taxes have already been paid in full, the amount of overpayment will be refunded to the homeowner. You are encouraged to call the taxpayer and Referral Assistance Center to check the status of your application. See contact info below.
Please contact the city of Boston taxpayer and Referral Assistance Center at (617) 635 4287. Please have your ward and parcel number available to help the staff member access your information. This number is located on your tax bill.
Diana Coldren is a real estate agent with Compass and a longtime resident of Beacon Hill.