The 2025 limits
The 2026 figures had not been published on DOR's page as of 28 September 2026. DOR usually updates them early in the year; check the circuit breaker page before relying on any 2026 number.
| Test | Tax year 2025 figure |
|---|---|
| Maximum credit | $2,820 |
| Age | 65 or older by 31 December 2025 |
| Total income limit, single | $75,000 |
| Total income limit, head of household | $94,000 |
| Total income limit, married filing jointly | $112,000 |
| Assessed value of home (owners) | No more than $1,298,000 as of 1 January 2025, before residential exemptions but after abatements |
| Homeowner cost test | Property tax plus half of water and sewer charges must exceed 10% of total income |
| Renter cost test | 25% of annual rent must exceed 10% of total income |
| Not eligible | Married filing separately; anyone claimed as a dependent |
There is no federal version
This credit exists only on the Massachusetts return. The federal return has no property tax or rent credit for seniors; property tax can only be deducted federally if you itemize, subject to the state and local tax cap. That is one reason software driven by the federal return can pass over it.
The property must be your principal residence in Massachusetts. You must own or rent and occupy it, and the credit is based on the actual real estate tax or rent paid for it.
| Federal | Massachusetts | |
|---|---|---|
| Property tax | Deductible only if you itemize, within the SALT cap ($40,000 for 2025) | Counts toward the circuit breaker credit |
| Rent | No deduction | Counts toward the circuit breaker (25% of rent) and the rent deduction |
| Form | Schedule A | Schedule CB with Form 1 |
How the credit is figured
For a homeowner, the credit is the amount by which property tax, plus half of water and sewer charges, exceeds 10% of total income, up to the maximum. For a renter, 25% of the year's rent is treated as the property tax portion and compared with the same 10% threshold.
Total income for this purpose is broader than taxable income. It includes items the Form 1 otherwise leaves out, such as Social Security, so the income test is harder to pass than people expect.
Illustrative example. A single 70-year-old homeowner in Easton has $45,000 of total income for 2025, including Social Security. Property tax is $6,800 and water and sewer charges are $1,000, so the qualifying cost is $6,800 + $500 = $7,300. Ten percent of income is $4,500. The difference is $2,800, which is under the $2,820 maximum, so the credit is $2,800, refunded if it exceeds the tax owed.
Missed it in past years? You can go back three years
Schedule CB must be filed within three years from the last day for filing the return, without regard to extensions. In practice, that means a senior who qualified but did not claim the credit can usually file for the three most recent years. DOR's circuit breaker page explains how to claim a year you missed, including by amending the return for that year.
Because the credit is refundable, a missed year can mean a real payment, not just a smaller bill.
- 1.Gather property tax bills (or rent records) and water and sewer bills for each year.
- 2.Total each year's income, including Social Security.
- 3.Check the age, income and assessed value limits for each year; they change annually.
- 4.File Schedule CB with an amended Form 1 for each year, following DOR's instructions for missed claims.
- 5.Keep copies of the bills in case DOR asks for them.
Where we come in
We check the circuit breaker every year for clients 65 and older, and we can review prior years to see whether a claim was missed. Before we start, we give you a scope and a price in writing.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
