Exemptions

Real Estate Tax

An exemption is a release from the obligation of having to pay taxes on all or part of a parcel of real property. Personal Exemptions are a reduction in taxes due to a particular personal circumstance and qualifications set forth in the Massachusetts General Laws. The burden is on the applicant to show that he or she falls within the expressed terms of the exemption provision. Exemptions are granted for one year only and an application must be filed to receive the exemption each year. A taxpayer may not receive more than one exemption; however, if a taxpayer qualifies for more than one exemption, the Assessor will grant the exemption of the largest value.

• Real Estate Exemption

  For any of the following real estate exemption types, please use the appropriate application form. Complete all sections that apply. If you qualify under more than one category, you will receive the exemption that provides the greatest amount of assistance.

  • Senior/Elderly Exemption - Clause 41C
  • Surviving Spouse or Minor Child of a Deceased Parent, & Elderly - Clause 17D
  • Surviving Spouse of a Police Officer or Fire Fighter - Clause 42
  • Blind Exemption - Clause 37A
  • Veterans Exemption - Clause 22
• Senior Tax Deferral Application – Clause 41A

  Applicants must meet the following requirements to be eligible for a Senior Tax Deferral – Clause 41A:

  • Taxpayer must own and occupy the property as of July 1st.
  • Taxpayer must be 65 years old as of July 1st.
  • Must have owned property in MA for 5 years.
  • Gross income, including your social security benefits, cannot exceed $58,000.
  • You may be enrolled in the deferral program and also receive other exemptions.
  • All of tax is deferred.
  • Tax is paid when the property is sold, transferred or upon the demise of the owner, with interest at 4% per year.
  • Taxes may be deferred annually until the taxes are due, including accrued interest, equal to 50% of the then-assessed value of your property.

  Senior Tax Deferral Application

Resources

• Senior Circuit Breaker - Learn about the tax circuit breaker program on state income taxes for eligible elderly taxpayers.
• Property Held in Trust - Important information if your property is held in trust or if you are considering placing your property in trust. This may impact your exemption eligibility.

Have a Question?

• Are there other requirements?

  Yes, you must have been domiciled in Massachusetts for the preceding ten years, and have owned the current property or other property in Massachusetts for at least five years.

• What are the income and asset limits for the Elderly exemption?

  For FY 2024, your gross income, including your Social Security benefits, can't be more than $30,231.71 if you are single, and $45,348.14 if married. The Social Security amount received in calendar year 2022, as well as your calendar year 2022 Federal Income Tax filing, if you filed, will be utilized for the calculation of your total income for the FY 2024 Clause 41C Senior Exemption. There is a Social Security deduction that we utilize. For FY 2024, a worker will receive a $5,653 reduction from the total amount of Social Security benefits received for calendar year 2022, and if married, $2,827 for a spouse who also receives a Social Security amount. This means that we can reduce the total amount of Social Security income used to calculate the income thresholds to the Clause 41C Senior Exemption by up $8,480 if married and both receive Social Security benefits, and $5,653 if single or only one spouse is collecting Social Security benefits.

  Your whole estate, not including the value of your primary domicile, can't be more than $47,283.21 if you are single, and $65,014.42 if you are married.

• What is a residential exemption?

  The City of Worcester offers residential exemptions with limits that are adopted yearly by the City Council. It is only granted to one property that serves as a property owner's principal residence of the taxpayer as used for Federal and State income tax reporting. To be eligible, the owner must occupy the property as their principal residence on January 1 preceding the fiscal year for which they are applying. A fiscal year runs from July 1 to the following June 30.

• What is the difference between an abatement and an elderly exemption?

  An abatement is a reduction in a real estate valuation based on a correction to the assessed valuation. The assessed value has nothing to do with the age of the owner, the income of the owner or any other financial information about the owner. The assessment represents an estimate of market value. An elderly exemption is a reduction in a real estate tax due based on certain age and income requirements set forth by the Commonwealth of Massachusetts. An individual who files for an abatement of real estate valuation because of age and/or income has filed the wrong form. Instead, that individual should file for an elderly exemption. The only factor the assessors examine on an abatement application is the market value of the property. Age and/or income do not factor into assessment determination. (Please refer to Questions 5 and 6).

• When can I file?

  You have until April 2 to file an application for the current fiscal year. There are requirements for each type of exemption and you will need to show us documents that support your application.

Motor Vehicle Excise Tax

Motor vehicles owned and registered by the following individuals or organizations are exempt from motor vehicle excise:

1. The Commonwealth or any political subdivision thereof;
2. Charitable corporations or trusts and religious corporations whose personal property is exempt under the provisions of M.G.L. Chapter 59, Section 5, Clauses 3 and 10 and possessing a tax exempt identification number;
3. Charitable organizations or non-degree granting institutions who lease motor vehicles for a full calendar year;
4. Lessors engaged in the business of leasing motor vehicles registered in their name and leased for a full calendar year to a charitable organization, other than a degree granting or diploma awarding institution, whose personal property is exempt from taxation under Chapter 59, Section 5, Clause 3;
5. A single motor vehicle owned and registered for the personal, non-commercial use of the following persons is exempt from motor vehicle excise (after providing the Assessor with the exemption application completed by a physician):
• World War I, World War ll, Korean or Vietnam veterans who have a service connected disability as certified by the Veteran's Administration, of permanent loss of use of one or both feet, or one or both hands, or permanent impairment of vision of one or both eyes;
• Non-veterans who have suffered loss or permanent loss of use of both legs or both arms, or, permanent impairment of vision of both eyes;
6. Vehicles registered by former prisoners of any war, in which the U.S. has been engaged. Proof must be furnished from the Veterans Administration or it should appear on the veteran's discharge papers;
7. Full-time military personnel stationed in Massachusetts, but who have a permanent residency in another state (a letter from the Commanding Officer stating legal place of domicile is required).

Once any of these exemptions is allowed, required documentation must be updated every five (5) years and a motor vehicle excise exemption application must be filed annually.

Have a Question?

• Am I eligible for any exemptions?

  Chapter 60A, Section 1 of the Massachusetts General Laws provides excise tax exemptions for vehicles owned by certain disabled individuals and veterans, ex-prisoners of war and their surviving spouses and certain charitable organizations. Please contact the Assessors office at 508-799-1098 for further details on eligibility.