Massachusetts Senior Circuit Breaker Tax Credit
WHAT IS THE CIRCUIT BREAKER?
It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker, when property tax payments exceed 10% of an individual’s annual income. Those who qualify will still be required to pay property taxes to their local communities.
Older adults who are homeowners may be eligible to receive a credit on their Massachusetts state income taxes if their property taxes paid, together with half of their water and sewer bills, exceed 10% of their income. If the credit is greater than the amount of taxes owed, the state will refund the difference. The maximum credit allowed for tax year 2023 is $2,590.
Seniors who are renters may be eligible to
receive a credit when 25% of their
annual rent exceeds 10% of their total income, subject to the same $2,590 maximum.
IS THERE A SPECIAL APPLICATION?
If eligible, you can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with your 2023 state income tax return.
Eligible seniors must file a return and claim a refund even if they do not owe taxes.
WHO IS ELIGIBLE?
Massachusetts residents who:
WHO IS NOT ELIGIBLE?
It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker, when property tax payments exceed 10% of an individual’s annual income. Those who qualify will still be required to pay property taxes to their local communities.
Older adults who are homeowners may be eligible to receive a credit on their Massachusetts state income taxes if their property taxes paid, together with half of their water and sewer bills, exceed 10% of their income. If the credit is greater than the amount of taxes owed, the state will refund the difference. The maximum credit allowed for tax year 2023 is $2,590.
Seniors who are renters may be eligible to
receive a credit when 25% of their
annual rent exceeds 10% of their total income, subject to the same $2,590 maximum.
IS THERE A SPECIAL APPLICATION?
If eligible, you can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with your 2023 state income tax return.
Eligible seniors must file a return and claim a refund even if they do not owe taxes.
WHO IS ELIGIBLE?
Massachusetts residents who:
- Are age 65 or older by December 31, 2023 (for joint filers, it is sufficient if one taxpayer is 65 years of age or older).
- Own or rent residential property in Massachusetts and occupy the property as primary residence.
- Have an annual income of $69,000 or less for a single filer who is not the head of household; $86,000 or less for a head of household; or $103,000 or less for joint filers.
- Have property assessed at no more than
- $1,025,000.
WHO IS NOT ELIGIBLE?
- Nonresidents
- Married persons who do not file jointly.
- Those who are a dependent of another tax filer.
- Those who receive a federal or state rent subsidy directly, or those who live in a property-tax exempt facility.
- Those whose property is assessed at a value of more than $1,025,000.
- Those who rent from a landlord who is not required to pay real estate taxes.
- Department of Revenue’s website (link below) or contact the Department via telephone at (617) 887-6367
- Several organizations, including AARP, offer free tax services in select locations (link below). You may also dial (888) 687-2277 to learn more.
