If you serve in the military or have served, Massachusetts gives qualifying veterans a break on the property tax bill, with larger relief for those who carry a service-connected disability. Massachusetts is home to Hanscom Air Force Base near Bedford and Lexington, and to Joint Base Cape Cod, which includes Otis Air National Guard Base, in Bourne and Falmouth, so it draws military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another. This guide explains the main rules in plain language and points you to the state's own sources. Tax law changes, and Massachusetts cities and towns administer these exemptions locally, so treat these figures as a starting point and confirm the current rules before you file.
How Massachusetts Helps Disabled Veterans With Property Taxes
Massachusetts handles its veteran benefit differently from many states. Rather than lowering a home's assessed value, it subtracts a set dollar amount from the property tax bill itself, and that amount grows with the severity of a veteran's disability. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities, and that rating shapes which exemption you qualify for.
As the Commonwealth's Secretary of State explains, the veteran exemptions are organized into a set of clauses under state law, often called Clause 22 and its variations, Clauses 22A through 22F. Each clause covers a different situation and carries its own amount.
Who Qualifies and How Much
The starting point, Clause 22, gives a base exemption of $400 off the tax bill to a wartime veteran with a service-connected disability rating of at least 10 percent, along with certain spouses and surviving spouses. From there, the relief grows with disability:
- Clause 22A: $750 for a veteran who has lost the use of a hand, a foot, or an eye in service.
- Clause 22B: $1,250 for a veteran who has lost the use of two limbs or eyes.
- Clause 22C: $1,500 for a veteran with specially adapted housing tied to a permanent and total disability.
- Clause 22E: $1,000 for a veteran the VA rates 100 percent disabled in the line of duty.
- Clause 22D and Clause 22F: a full exemption of the home's tax for paraplegic veterans, and for the surviving spouses of service members who died in service, under the conditions the law sets.
As the Massachusetts Department of Revenue's guide for assessors describes, you must meet the eligibility tests as of July 1 of the tax year, and you file with your local board of assessors. Many cities and towns also vote to increase these amounts, so your town may grant more than the state minimum.
Surviving Spouses
The benefit can carry to a surviving spouse under the state's rules. A surviving spouse who has not remarried may be able to continue an exemption, and Clause 22D provides a full exemption for the surviving spouse of a service member who died from a service-connected cause. Because the details depend on your situation and your town, confirm them with your local assessors before you rely on the benefit.
How It Works With Your Local Tax Bill
Property tax in Massachusetts is set and collected by your city or town, not the state, and you claim every veteran exemption through your local board of assessors. You file your discharge papers, your VA disability documentation, and the town's application, and in most communities you must reapply each year, usually within three months after the third-quarter tax bill is mailed.
Because each city and town sets its own tax rate and can vote to increase the exemption amounts, the same disability rating can save different dollars in different communities. If you are weighing where to settle, our guide to the military bases in Massachusetts can help you picture the local cost of owning a home near each installation.
Military Pay and Massachusetts State Income Tax
Massachusetts has a flat state income tax, but it treats military retirement pay well. As the state's tax filing tips for military members and veterans explain, pension income from the U.S. uniformed services, including survivor benefits, is exempt from Massachusetts income tax. VA disability compensation is not part of your federal income, so Massachusetts does not tax it either.
The state's individual income tax rate is 5 percent. On top of that, Massachusetts applies a 4 percent surtax on the portion of taxable income above a high threshold that rises each year for inflation, so most military families never reach it. Active-duty pay is treated under the usual residency rules: a service member who keeps another home state and is stationed in Massachusetts on orders is generally not taxed by Massachusetts on that pay. Because rates and rules can change, confirm the current details with the Department of Revenue before you file.
A Note for Military Spouses: MSRRA
If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a Massachusetts resident just because your service member got orders here.
