Boston Increases Residential Exemption for 2017

The mayor and the Boston City Council have chosen to increase the residential exemption from 30% to 35% of the average of all residential parcels. This means that some homeowners might see their property tax bill go lower. The current tax rate for 2017 is $.01059 by which you multiply your assessed value. Therefore, if your property is assessed at $500,000 and you did not apply for your exemption prior to 2017, your property tax bill will be $500,000 x .01059 = $5295. If you did apply for the residential exemption prior to 2017, then your tax bill drops $2,433. In this example, your tax bill then becomes $2,862.

Here is a real-world example of the effect on one homeowner’s pocket book after taking into account rising values, a lower tax rate, and the new higher residential exemption for 2017:

 

Fiscal Year Property Type Assessed Value *
2017 One Family $490,900.00
2016 One Family $476,600.00

In 2016, the rate was $.011. Multiplying this by the 2016 assessed value of $476,600 = a gross tax of $5242.60. Deduct the 2016 exemption of $1,974.40 for a net tax bill of $3,268.20. The property’s assessed value rose $14,300. The tax rate fell .00041. This owner’s tax bill for 2017 is $490,900 x .01059 = $5,198.63 less $2,433 = $2,765. And so, in spite of the increase in assessed value, the combined effect of the lower tax rate and higher residential exemption have saved this homeowner $502.57 or a monthly mortgage payment savings of $41.88!

You can look up the current and assessed value of any property in Boston at http://www.cityofboston.gov/assessing/search/ and use this to determine the taxes on your current or future residence.

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