Local option bills empower cities and towns to offer new and enhanced tax relief
(BOSTON—01/15/2026) The Senate took action today 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.
“Today the Senate advanced a comprehensive, statewide slate of tax relief measures to confront one of the greatest drivers of housing costs in our Commonwealth,” said Senate President Karen E. Spilka (D-Ashland). “For too many families, sudden tax spikes create uncertainty about whether you can remain in your community or continue raising your family in a home you worked so hard to attain. These proposals will help seniors age in place and give new homeowners the stability to put down roots, regardless of zip code. I thank Chair Rodrigues for his stewardship, and I am grateful to Senators Brownsberger, Collins, Jehlen, Cyr, and Lewis for advancing legislation that delivers real cost relief for families across Massachusetts.”
“The Senate has been laser-focused on affordability, and especially housing affordability for individuals and families in Massachusetts. These property tax relief bills will go a long way towards making home ownership viable for Boston and the Commonwealth at large,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “These four bills give municipalities tools to directly impact and benefit homeowners with municipal tax rebates, expansion of the successful ‘Senior Circuit Breaker’ initiative, providing tax exemption for income and age qualified homeowners, and explicitly identifying high need neighborhood properties. These bills are clear proof that we will continue to prioritize housing affordability for all residents of our state.”
“As the Senate Chair of the Joint Committee on Revenue, we’ve heard testimony at multiple hearings on the need for property tax relief. Senior citizens, young families and working-class homeowners of all ages are struggling to pay their property taxes,” said Senator James B. Eldridge (D-Marlborough), Senate Chair of the Joint Committee on Revenue. “The bills that the Senate passed today will give cities and towns important local options to reduce many residents’ property taxes. I’m grateful to the Senate President, the Chair of the Ways and Means Committee, and the bill sponsors for their leadership on this pressing affordability issue.”
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 per cent. 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.
“Every year across the state, there are a few communities in which homeowners face unusually large tax increases,” said Senator Will Brownsberger (D-Belmont), lead sponsor of S.2899. “This legislation will give those communities tools to help their most vulnerable taxpayers.”
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.
“It is critical that we begin this new year by prioritizing municipal property tax relief,” said Senator Nick Collins (D-South Boston), primary sponsor of S.2900. “By advancing these responsible tax relief proposals, we can help ease the burden of rising property tax bills on homeowners without harming small businesses or putting our economy at risk.”
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.
“Property tax deferral is an important program that can help older adults stay in their homes,” said Senator Patricia D. Jehlen (D-Somerville), primary sponsor of S.2901. “It allows older adult homeowners to defer all or part of their property tax bill, which is paid back to the municipality with interest when the property is sold. It can be a better alternative to reverse mortgages, especially if the municipality sets the interest rate lower than the 8 per cent cap. It is under-utilized, and this legislation will remove one barrier by extending the time a municipality can reduce the interest rate, and the time before foreclosure is allowed. Many cities and towns can do more to inform older homeowners of this option, and this is a chance to do that.”
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.
“Rising property taxes have created serious financial burdens for many elderly residents across Massachusetts. I filed legislation to provide an option for municipalities to opt in to establishing a senior citizen property tax exemption to allow them to ease the burden for struggling income-eligible seniors and allow many aging residents the ability to continue to live in their communities and not be driven out due to increasing tax burdens,” said Senator Jason M. Lewis (D-Winchester), lead sponsor of S.2902. “I appreciate the hard work of Senator Eldridge, Senator Rodrigues, and Senate President Spilka to champion these local affordability bills to give communities more options to support seniors and lower- and middle-income residents.”
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.
“Our veterans have already given so much in service to our nation, and they deserve to be able to remain in the communities they call home,” said Senator Julian A. Cyr (D-Provincetown), primary sponsor of S.1948. “For many veterans on Cape Cod, the Islands, and across Massachusetts, rising property taxes are putting undue pressure on household budgets that are already razor thin. This bill gives communities a meaningful property tax relief tool while recognizing the service veterans have already given so they may live with the dignity they have earned. I’m grateful to Senate President Spilka, municipal leaders, and advocates who helped move this legislation forward, and to our veterans for their continued contributions to civic life.”
The first four bills were advanced to the Senate floor by unanimous votes of the Senate Committee on Ways and Means on January 8, 2026. The tax shock and municipal relief bills were subject to an 18-day public comment period held by the Ways and Means Committee in December. The Joint Committee on Revenue advanced the senior deferral and senior exemption bills on November 7, 2025 after soliciting public testimony in June.
The veterans’ housing relief bill was advanced by the Senate Committee on Rules with a unanimous poll of January 12, 2026. The Joint Committee on Revenue solicited public testimony at a hearing in June and gave the legislation a favorable report on November 7, 2025. All committee votes are publicly posted on the Legislature’s website.
Now that they have been passed by the Senate, all five bills head to the House for further consideration.
