Author: Donnette Benvenuto, Bureau of Local Payments Analyst
Massachusetts General Law Chapter 59, Section 5 serves as the primary mechanism for delivering property tax relief to taxpayers with military service. For decades, veterans and veteran advocates argued that base exemption amounts failed to keep pace with property values and cost of living. Over the last three years, the landscape of veteran property tax exemptions in Massachusetts has shifted from a history of static, fixed rates to a new era of local empowerment and inflationary adjustments.
At the center of this transformation is the "Honoring, Empowering and Recognizing Our Servicemembers and Veterans" (HERO) Act, which was passed in August 2024. This landmark legislation modernizes Chapter 59 by introducing two critical local options: Clauses 22I and 22J.
Clause 22I addresses the "inflation gap" by allowing municipalities to tie annual exemption increases to the Consumer Price Index (CPI). This ensures that the relief grows alongside the cost of living. Clause 22J permits cities and towns to double the current exemption amounts. For example, a veteran under Clause 22E (100% disability) could have their exemption increased from $1,000 to $2,000 in annual relief, provided their local town meeting or city council votes to adopt the measure.
The Commonwealth reimburses the full amount of certain exemptions (such as Clause 22D for surviving spouses), but most are partially reimbursed by the state. The new clauses allowing for the doubling of exemption amounts (22J) and annual cost of living adjustments (22I) are local options and are not reimbursed by the Commonwealth.
Recent Cherry Sheet data reflects a notable rise in the total volume of veteran exemptions being claimed by cities and towns. As shown in the following graph, the Commonwealth’s reimbursement has increased from $16.3M in FY17 to $29.5M in FY25. This increase is due to the Clause 22D exemption that, as previously noted, is fully-reimbursed. This is shown in the second graph below.
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| Date published: | January 8, 2026 |
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