Author: Municipal Finance Legal Guidance
This month's Ask DLS features frequently asked questions concerning the senior exemption under G.L. 59, § 5 Clause 41D. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We would like to hear from you.
Who can benefit from Clause 41 property tax exemptions?
Seniors who are at least 70 years old, meet certain ownership and domiciliary requirements and whose annual gross receipts and whole estate are within certain limits may be eligible for a $500 exemption under Clause 41, or local option Clauses 41B or 41C. Seniors who are at least 70 years old, meet certain ownership and domiciliary requirements and whose annual gross receipts are within certain limits may be eligible for an exemption based on five percent of the average assessed valuation of all residential property under local option Clause 41C½.
How can municipalities annually increase the income and asset limitations for senior citizen property tax exemptions?
Municipalities can annually increase the income and asset limitations for senior property tax exemptions by locally adopting G.L. 59, § 5 Clause 41D. By locally adopting 41D, municipalities can automatically increase income and asset limitations by the cost-of-living adjustment (COLA) determined by the Commissioner of Revenue each fiscal year.
How do the income and asset limit increases operate under G.L. 59, § 5 Clause 41D?
Under 41D, the income and asset limit increases operate cumulatively. This means that once the limits are increased by the COLA, that increase becomes the base to which the next year’s COLA is applied. See IGR-2024-6. As such, communities will likely have different income and asset limits depending on if, and when, Clause 41D was adopted.
Is G.L. 59, § 5 Clause 41D a standalone exemption?
No, Clause 41D is not a standalone exemption. A municipality must treat it as an addendum to an already adopted Clause 41, 41B, or 41C exemption.
It’s important to note, adoption of Clause 41D does not adjust the income for Clause 41C½. 41C½ gross receipts limit is tied to the income limits under the state “circuit breaker” income tax credit, which are automatically adjusted each year under another law. See IGR 2017-12, Clause 41C½ Property Tax Exemptions for Seniors.
If a community has adopted Clause 41D, are social security benefits still deducted when computing an applicant’s income?
Yes, the annual social security benefit deduction, as determined by the Commissioner of Revenue, should be used by assessors when computing an applicant’s income. The adoption of Clause 41D does not affect this. Further, the deduction is increased annually by the cost-of-living adjustment (COLA) made for social security benefits distributed as of January first. The Commissioner of Revenue promulgates the amount of the social security deduction for the next fiscal year in an Informational Guideline Release (IGR). For the Social Security Deduction for FY26, please see IGR-2025-8.
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| Date published: | November 6, 2025 |
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