| Date: | 05/12/2026 |
|---|---|
| Organization: | Massachusetts Department of Revenue |
| Regulatory Authority: | Massachusetts General Laws |
| Official Version: | Published by the Massachusetts Register |
830 CMR: DEPARTMENT OF REVENUE
830 CMR 62.00: INCOME TAX
830 CMR 62.3.1 is hereby repealed and replaced with the following:
830 CMR 62.3.1: Rent Deduction
(a) General Rule. An individual who rents property located in the Commonwealth as a principal residence is entitled to an income tax deduction from Part B adjusted gross income equal to 50 percent of the rent, as hereinafter defined, paid to the landlord. For taxable years beginning on or after January 1, 2023, the maximum rent deduction allowed in a taxable year shall not exceed $4000. M.G.L. c. 62, § 3(B)(a)(9) as amended by St. 2023, c. 50.
(b) Outline of Topics. 830 CMR 62.3.1 is organized as follows:
(1) General Rule: Outline of Topics
(2) Principal Residence Requirement
(3) What Constitutes Rent
(4) Persons Entitled to Deduction
(5) Prepayment and Late Payment of Rent
(6) Recordkeeping
A taxpayer must maintain a principal residence in Massachusetts, for which they pay rent, in order to be eligible for the rent deduction. If a taxpayer is a resident in Massachusetts and has only one place of residence, that place of residence is the taxpayer’s principal residence. If a taxpayer is a resident in Massachusetts and has more than one place of residence, the determination of which place of residence is the taxpayer’s principal residence depends upon all the facts and circumstances, including the number of days spent at each place of residence and other relevant facts.
Example 1: Aaron, a Massachusetts resident, owns a house in Springfield in which he lives most of the year, but also rents a cottage on Cape Cod and lives there in the summer months. The Springfield house is Aaron’s principal residence; the summer cottage is not. Aaron may not deduct the rent paid for the summer cottage.
Example 2: Brian, a New Hampshire resident, owns a house in New Hampshire and also rents an apartment in Boston. The New Hampshire house is Brian’s principal residence; the Boston apartment is not. Brian may not deduct the rent paid for the Boston apartment.
Example 3: Catherine, a Massachusetts resident, rents an apartment in Boston in which she lives most of the time, but also rents a cottage in Maine. The Boston apartment is Catherine's principal residence; the Maine cottage is not. Catherine may deduct the rent paid for the Boston apartment.
Example 4: Deirdre, a University of Massachusetts undergraduate student, rents an apartment in Amherst during the school year and resides with her parents in the family home in Newton when she is not at college. The home in Newton is her principal residence; the apartment rent is not deductible
For purposes of 830 CMR 62.3.1, "rent" means the amount paid to a landlord by a tenant for the rental or lease of premises which are occupied as a principal residence located in Massachusetts.
Rent may include the rental of a mobile home or of a mobile home site. Payments by a tenant-stockholder of a cooperative housing corporation to the corporation, and payments by an owner of a condominium unit to the condominium association do not constitute rent. Consideration paid for the occupancy of a “bed and breakfast establishment,” “bed and breakfast home,” "hotel," "lodging house," "motel," or “short-term rental” as defined in M.G.L. c. 64G, § 1, or similar occupancies, do not constitute rent unless such premises are occupied under a rental agreement, written or oral, creating a landlord-tenant relationship.
In determining the amount of the deduction, rent includes the amount paid for heat, hot water, gas, electricity, furnishings or parking, if such items are included in the rent and the landlord makes no separate charge for these items. But, if charges for these items are separately stated at the time of rental, in the rental agreement or otherwise, such charges do not constitute rent for purposes of the rental deduction.
Example 1: Emily's lease has a stated rental price of $2000 per month, which includes the cost of heat and hot water. The lease provides for an additional charge of $300 per month for a parking space. Emily pays separately for electricity. Emily's rental deduction for each month of occupancy for which rent is paid is $1000 (50% of the $2000 rent). Emily lived in the unit for the entire year. She is eligible for the maximum rent deduction, in the amount of $4000, on her personal income tax return filed for the taxable year.
Where a tenant provides services to a landlord and in consideration for such services receives a reduction in rent, rent is the actual amount of money paid by the tenant to the landlord; rent does not include payments in kind.
Example 2: Frank, a tenant in a unit of an apartment building, has an agreement with the landlord where he performs landscaping duties in the area surrounding the building in exchange for a discount in rent. Frank is charged $1000 per month for the right to occupy his apartment unit while other tenants, occupying similar units in the building, are charged $2500 per month. Frank's rental deduction for each month of occupancy for which rent is paid is $500 (50% of the $1000 rent). Frank lives in the apartment for six months out of the year before moving home to his parents’ house. He is eligible for a $3000 rent deduction (6 x $500) on his personal income tax return filed for the taxable year in which the rent was paid.
Rent does not include amounts paid as a security deposit or amounts paid for the last month's rent upon entering into a lease, unless and until either amount is applied to unpaid rent.
A taxpayer whose principal residence is in Massachusetts and who pays rent for such premises is eligible for the rental deduction. If two or more individuals jointly rent a unit, each individual who occupies the unit as that person’s principal residence is entitled to a deduction based on the amount of rent paid.
Example 1: Fiona, a young artist, occupies as her principal residence an apartment in Cambridge, which is leased for her by her aunt who resides in Boston. The rent is paid by the aunt. Fiona is not entitled to a deduction since she does not pay the rent; the aunt is not entitled to the deduction because the apartment is not her principal residence.
Example 2: Grant, a teacher, and Henry, a salesman, rent an apartment in Boston for $4000 a month; each pays $2000. The apartment is Grant's only residence; Henry also owns a house in Pittsfield in which he lives most of the time. Grant's rental deduction for each month of occupancy for which rent is paid is $1000 (50% of $2000). Henry is not entitled to a deduction for his share of the rent since the Boston apartment is not his principal residence.
The rental deduction may only be taken for the taxable year in which the rent was paid, provided, however, that last month’s rent and a security deposit that is later used to offset rent are only considered rent in the months that they are applied to such rent. See 830 CMR 62.3.1(3).
Example 1: Ingrid, a tenant whose rental period runs from the first to the last day of the month, pays her January, 2025 rent in December of 2024. Ingrid may take the deduction for the January, 2025 rental period when filing her 2024 Personal Income Tax Return, the return for the year in which the payment was made.
Example 2: Jamie pays rent for November and December of 2024 in February, 2025; Jamie may take the deduction for this payment when filing his 2025 Personal Income Tax Return, the return for the year in which the payment was made.
Example 3: Kyle, a tenant whose rental period runs from the 1st day of each month to the last day of the month, paid for the last month's rent upon entering into the lease on December 1, 2025. Kyle paid January rent on January 1, 2026. On January 15, 2026, Kyle notified the landlord that he is terminating his at-will lease, is moving out on February 28, 2026 and would like the last month’s rent applied to the February 2026 rental period. Kyle can take the deduction for the last month’s rent when filing his 2026 Personal Income Tax Return because it was applied to the February 2026 rental period.
Every taxpayer claiming the rental deduction must provide the information required by the appropriate schedule of their Massachusetts Personal Income Tax Return and must retain adequate records to substantiate the deduction as set forth in 830 CMR 62C.25.1, Record Retention.
REGULATORY HISTORY
830 CMR 62.3.1: Rent Deduction
Date of Promulgation: 12/24/81
Amended: 9/10/82
Amended: 12/19/03
Amended: 12/16/16 - Section (2)
Amended: 10/04/23 – Section (1)
WORKING DRAFT FOR PUBLIC COMMENT - 5/12/26
