Maximum Credit Increases to $2,820 to Provide Greater Relief for Massachusetts Seniors
BOSTON – State Representative Richard M. Haggerty (D-Woburn) shares and highlights some increased tax relief for eligible seniors for the tax year 2025 through the Massachusetts Senior Circuit Breaker Tax Credit. The information provided here is for general awareness purposes only and seniors should consult with a qualified tax professional for specific guidance on their individual tax situations.
Thanks to the 2023 Tax Relief Law (Chapter 50 of the Acts of 2023), the maximum credit available to qualifying seniors has increased to $2,820 for tax year 2025, offering more support to help older Massachusetts residents manage property tax burdens.
“The Senior Circuit Breaker Tax Credit is an important lifeline for seniors on fixed incomes who are struggling with rising property tax costs and just the general increase in cost of living,” stated Representative Haggerty. “This tax credit means eligible seniors can receive meaningful relief, helping them remain in their homes and communities.”
How the Circuit Breaker Works
The Circuit Breaker Tax Credit is “triggered” when property tax payments exceed 10% of an older adult’s annual income. The program provides relief in two ways:
- For Homeowners: Seniors may 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.
- For Renters: Seniors may receive a credit when 25% of their annual rent exceeds 10% of their total income.
If the credit exceeds the amount of taxes owed, the state will refund the difference.
Eligibility Requirements
Massachusetts residents may qualify if they:
- Are age 65 or older by December 31, 2025;
- Own or rent residential property in Massachusetts and occupy it as their primary residence;
- Have annual income of $75,000 or less for single filers; $94,000 or less for head of household; or $112,000 or less for joint filers;
- Have property assessed at no more than $1,298,000
How to Apply
Eligible seniors can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with their 2025 state income tax return. Seniors must file a return and claim a refund even if they do not owe taxes.
“I encourage all eligible seniors to explore these benefits and consult with a tax professional to ensure they’re taking full advantage of the relief available to them.” added Representative Haggerty. “No one should miss out on relief they’ve earned simply because they weren’t aware of it.”
Additional Tax Relief Programs
Representative Haggerty also reminds seniors and families of some other valuable tax benefits available to Massachusetts residents:
- No Tax Status: Qualified seniors may not have to pay Massachusetts income taxes if their adjusted gross income is less than $8,000 (single filers), less than $14,400 (head of household, plus $1,000 per dependent), or less than $16,400 (married filing jointly, plus $1,000 per dependent).
- Limited Income Credit: Seniors with adjusted gross income between $8,000-$14,000 (single), $14,400-$25,200 (head of household, plus $1,750 per dependent), or $16,400-$28,700 (married filing jointly, plus $1,750 per dependent) may qualify for additional credits.
- Age 65+ Exemption: Seniors are eligible for a $700 exemption if they are age 65 or older on December 31, 2025. The same exemption is available for spouses who are also age 65 or older.
- Child and Family Tax Credit: For households with elderly or disabled dependents, the credit is $440 per individual in tax year 2025.
- Blindness, Medical, and Dental Exemptions: Seniors are eligible for a $2,200 exemption if they or their spouse are legally blind. Additionally, seniors are allowed an exemption for medical and dental expenses paid during the taxable year.
- Non-Taxable Income: Social Security payments received, as well as Veterans Administration compensation, are not taxable in Massachusetts.
For questions about the Circuit Breaker Tax Credit and other senior tax benefits, residents can contact the Massachusetts Department of Revenue at 1-800-392-6089. For free tax preparation assistance, the AARP Foundation Tax-Aide can be reached at 1-888-227-7669.
