(BOSTON 1/23/2026) — The Senate took action last week to make housing more affordable in Massachusetts, approving new tools that give cities and towns the ability to lower the cost of property taxes and put money directly back in residents’ pockets.
Senators approved five separate measures to provide meaningful relief to some of the state’s most vulnerable residents and blunt the skyrocketing costs of housing in every part of the state.
If signed into law, the measures together would prevent residents from being blindsided by sharp tax bill spikes, make it easier for seniors to access tax deferral programs, allow cities and towns to implement tax rebates, and create a new program for qualifying seniors to lower their tax bills.
“I hear it everywhere I go: the biggest issue most Bay Staters face is the crushing cost of housing. Last week, the Senate acted to provide tax relief to families, seniors, veterans, and low-income homeowners struggling under the weight of property taxes. We also made it easier to access programs and initiatives that can help keep Bay Staters in their homes,” said Senator Michael Moore (D-Millbury). “While I was not able to secure an amendment creating a special property tax exemption for disabled senior Veterans similar to my bill S.2046, I will continue to push for this important policy because those in the military who gave it their all deserve the same in return from their government.”
Protecting Residents from Property Tax Shocks
S.2899, An Act to prevent property tax bill shocks, gives cities and towns the ability to shield their most vulnerable taxpayers from the shock of an extraordinarily high tax bill in a year when the community’s residential property tax levy is rising by more than 10%. Senators passed the bill on a 37-1 roll call.
If they choose to, municipalities could offer a tax credit to gradually phase in the increase for vulnerable households, mitigating the shock felt by taxpayers when they receive third- and fourth-quarter tax bills, which fold in the entire tax increase. Qualifying groups of taxpayers include people aged 65 and older who own and occupy the home, people enrolled in MassHealth, and people living with children under age 6. Senators amended the bill during the course of debate (Amendment 1) to give cities and towns the further option of expanding eligibility to cover people living with children under the age of 18.
A New Tax Relief Tool for Residents
Lower- and middle-income taxpayers who already receive a local residential tax exemption would be able to receive enhanced relief in the form of a rebate if cities and towns take advantage of a local option contained in S.2900, An Act relative to municipal tax relief. The bill passed on a 37-1 roll call vote.
If a city or town takes advantage of this tool, the local government would be able to determine their residents’ eligibility and set their own thresholds around assets, income, or other factors. Building on this bill, Senators adopted an amendment (Amendment 9) that boosts the existing senior property tax exemption by giving municipalities the option of further expanding eligibility and raising the limit of possible exemption from $1,000 to $1,500.
Helping Seniors Age in Place
An Act relative to senior property tax deferral, S.2901, would expand eligibility for the Senior Tax Deferral program by lowering eligibility to seven years of state residency, instead of the current ten-year requirement, to keep more money in seniors’ pockets at a time when property values and tax bills are steadily climbing. Senators approved the legislation 37-0.
The bill also gives a respectful amount of time to grieving families of people who have taken advantage of the Senior Tax Deferral, allowing heirs more time to plan for and pay the deferred taxes by delaying an increase in the interest rate for deferred taxes until a year after the taxpayer’s death, and delaying the date on which a foreclosure petition may be filed until 18 months after their death. A successful amendment adopted today (Amendment 1) prioritizes current military servicemembers by ensuring that these interest rate and lien changes are mirrored in an existing property tax deferral for active members of the military.
Means-Tested Senior Property Tax Exemption
S.2902, An Act authorizing the establishment of a means tested senior citizen property tax exemption, would make it easier for municipalities to offer local property tax exemptions to seniors. It builds on the success of the recently-increased Senior Circuit Breaker. Departing from a piecemeal system of towns and cities petitioning to offer their own senior tax exemption, the bill creates a statewide opt-in program that prioritizes longtime residents and gives controls to local authorities. The Senate passed the bill on a 37-0 roll call.
Giving Back to Armed Forces Veterans
S.1948, An Act relative to veteran property tax work-off, bolsters the targeted tax relief offered to veterans and spouses of deceased or disabled veterans. Continuing their career of service or honoring their spouse’s sacrifice, they would be able to reduce their property taxes by up to $2,000 per year in exchange for providing volunteer services to their municipality, an increase from the current $1,500 cap, under a provision that local governments can choose to adopt. Senators approved the bill, 38-0.
Having been passed by the Senate, all five bills go to the House for further consideration.
###