Taxpayers age 65 or older who own or rent residential property located in Massachusetts are allowed a credit equal to the amount by which their real estate tax payments, or 25% of the rent constituting a real estate tax payment, exceeds 10% of the taxpayer’s total income, not to exceed $1,070. The amount of the credit is subject to limitations based on the taxpayer’s total income and the assessed value of the real estate, which for tax year 2016 must not exceed $720,000.
For purposes of calculating the credit, total income and maximum credit thresholds are adjusted annually. For tax year 2016, an eligible taxpayer’s total income cannot exceed $57,000 in the case of a single filer who is not a head of household filer; $71,000 for a head of household filer; and $86,000 for joint filers. In order to qualify for the credit, a taxpayer must be age 65 or older and must occupy the property as his or her principal residence.
Tax Tips for Seniors and Retirees
created this “Tax Tips” fact sheet to assist you in completing your tax return and ensure that you take advantage of
deductions and exemptions that are available. You may wish to consult with a tax professional for guidance on some
of these items. View Tax Tips for Seniors and Retirees .