Senior Property Tax Relief. Town by Town.

If you're 65 or older and you own the home you live in, Massachusetts offers three ways to reduce what you pay, and they stack in the sense that each one is separate, with its own application, its own limits and its own office.

Program	What it does	Where you apply
Clause 41C exemption	Reduces your assessed value, so your tax bill goes down outright. You don't pay it back.	Your town's Board of Assessors
Clause 41A deferral	Postpones part of the tax rather than forgiving it. The town places a lien, and the deferred amount is paid when the property is sold or transferred.	Your town's Board of Assessors
Senior Circuit Breaker credit	A refundable credit on your Massachusetts income tax return, based on how much of your income went to property tax.	The state, with your tax return (Form 1, Schedule CB)

1. The Clause 41C Exemption, the One to Ask About First

A town may vote to grant a property tax exemption to residents who are 65 or older, own and occupy the home as their principal residence, and fall under income and asset limits. The exemption reduces the property's taxable value, up to a percentage of it, capped in dollars, so it comes straight off the bill.

Two things trip people up.

• State law sets default income and asset limits, and your town may have voted to raise them. The default income limit in the statute is low, $20,000, which is why many towns have voted to adopt a higher one. You cannot tell whether you qualify from a neighbor's experience. You have to ask your own assessor for the town's current numbers.
• You usually have to apply every year. Most towns require an annual application with proof of income, so a benefit you claimed last year doesn't renew itself.

Ask your assessor's office for the exemption application, the town's current income and asset limits, and the filing deadline. Bring last year's tax return, or the documentation the assessor asks for, and proof that you own and occupy the property.

While you're there, ask about the other statutory clauses. There are separate exemptions for certain surviving spouses, for veterans with service-connected disabilities, and for residents who are legally blind, among others. If any of them fit your household, they're worth claiming too.

2. The Clause 41A Deferral, for a House That's Paid Off but a Bill You Can't Cash-Flow

A deferral is not a discount. You still owe the money. What happens is that the town postpones collection, records a lien on the property, and is paid, with interest, when the home is sold or passes to your heirs.

It exists for a specific situation, a homeowner with substantial equity but limited income. Age and income requirements apply, and a town may vote to raise the income ceiling above the state default. Because it's a lien, it's a decision to make with your family, and it's worth a conversation with the assessor's office before you sign anything.

3. The Senior Circuit Breaker Credit, the One You Claim on Your Taxes

This one doesn't go through your town at all. If you're 65 or older by the end of the tax year, own or rent your principal residence in Massachusetts, and your property tax (plus half of your water and sewer charges) comes to more than 10% of your income, you may be able to claim a refundable credit on your Massachusetts income tax return, which means it can produce a refund even if you owe no state tax.

Income limits apply and are updated each year by the Department of Revenue, so a figure you read two years ago may be out of date. The credit is claimed with your return using Schedule CB. If someone prepares your taxes, ask them directly, “Did you check whether I qualify for the Circuit Breaker?” It's a question worth asking every year.

The exemption comes off the bill. The deferral moves the bill. The credit gets you a state refund. Only one of the three is free money, and it's the one too few people claim.

Do It in the Autumn, Not in April

Town exemption applications generally line up with the fiscal year that begins July 1, which means applications are usually filed in the winter and early spring, before the new bills are set. The Circuit Breaker is claimed with your state return, which is due in April. Put both dates in your calendar now, a call to the assessor in December and a question to your tax preparer in February.