Tax Deferrals

There are 2 types of tax deferrals; clause 41A and clause 18A. These programs allow owners to defer all or part of their annual property taxes.  
  1. Clause 41A
  2. Clause 18A
Clause 41A
The deferred tax accumulates, with simple interest at 8%, as a lien on the property until it is sold.

No sale or transfer can be consummated during the lifetime of the taxpayer, unless the deferred taxes and interest due are paid in full. If the owner has deceased and the deferral is continued by the surviving spouse, repayment is not required during the lifetime of the surviving spouse. If the deferral is not continued by the surviving spouse, or if the property is sold, the deferred taxes plus interest at 16% shall be paid by the estate.

Applicants must be 65 or over on July 1, have been domiciled in Massachusetts for the preceding 10 years, and have had a maximum income of $40,000 in the prior year. The applicant also must have owned and occupied the property or other real property in the Commonwealth for 5 years. The total amount of taxes due, plus interest, for the current year and prior years cannot exceed 50% of the full and fair cash value of the property. A lien filed pursuant to this section shall be subsequent to any liens incurred by securing a reverse mortgage.

Contact the Assessor's Department if you are interested.

The first year of filing the applicant must complete and sign a tax deferral agreement in addition to their application. This agreement must be signed by the applicant and any co-owners and if the property has a mortgage, by the bank or other entity holding the mortgage. The interest rate provided for this deferral is 8% (MGL CH59 Sec 5 clause 41A).