Massachusetts Senior Circuit Breaker Tax Credit

Quick Facts

Credit type: Refundable personal income tax credit that reimburses part of the property taxes or rent paid on a principal residence.
Benefit size: For the 2024 tax year, the maximum credit is $2,730. Because it is refundable, you can receive the credit even if you owe no state income tax.
Eligibility age: Every filer claiming the credit must be age 65 or older by December 31 of the tax year. Married couples filing jointly qualify if one spouse is 65.
Income limits: $72,000 for single filers, $90,000 for head of household, and $109,000 for married filing jointly for 2024. Limits adjust annually.
Home value cap: Owner-occupied homes must have an assessed value of $1,171,000 or less for the 2024 tax year. Renters do not need to meet a property value test but must occupy a qualifying Massachusetts residence.

Program Overview

Massachusetts created the Senior Circuit Breaker credit in 1999 to ensure older residents could remain in their homes even as property taxes rose. The credit works like an electrical circuit breaker: when taxes or rent consume more than 10% of an eligible senior’s income, the state steps in to provide relief. Because it is claimed on the state income tax return, you can receive it alongside other tax credits such as the Earned Income Tax Credit, Household Dependent Care Credit, or refundable credits for solar energy.

Unlike abatements processed by local assessors, the circuit breaker is claimed directly with the Massachusetts Department of Revenue (DOR) when filing Form 1, the resident income tax return. Qualifying renters are also eligible—half of the rent paid is treated as property tax for purposes of the credit. This feature helps seniors who have downsized to apartments or assisted living units but still face high housing costs.

The credit has grown over time. The legislature indexed the maximum credit and income limits to inflation, so benefits keep pace with economic changes. Seniors who discover they were eligible in prior years can file amended returns for up to three years to claim missed credits, potentially receiving thousands in retroactive refunds. The DOR provides worksheets, calculators, and a telephone hotline to help seniors and their caregivers compute the credit accurately.

Eligibility Requirements

To qualify, you must meet four main tests: age, residence, income, and property value.

Age Requirement

Each taxpayer must be 65 or older on the last day of the tax year (December 31). If you are married filing jointly, only one spouse needs to meet the age requirement. Widowed seniors filing as single can claim the credit if they were 65 by year-end, even if their spouse passed away earlier.

Residence and Ownership or Tenancy

The property must be your principal residence in Massachusetts. Seasonal homes or vacation properties do not qualify.
Owners must have paid Massachusetts property tax on the home during the year. Condominiums, single-family homes, multi-unit buildings where you occupy one unit, and certain manufactured homes are eligible.
Renters can claim the credit if they paid rent on a Massachusetts apartment, cooperative unit, or assisted living facility and were not receiving a federal or state rental subsidy that reduced rent to a nominal amount.
Residents of nursing homes can qualify if they paid more than 10% of their income toward their room-and-board charges and were Massachusetts residents for the entire year.

Income Limits

Qualifying income includes Massachusetts adjusted gross income plus tax-exempt interest and the portion of Social Security benefits excluded from federal gross income. For 2024 the limits are $72,000 (single), $90,000 (head of household), and $109,000 (married filing jointly). If your income exceeds the limit by even one dollar, you cannot claim the credit for that year, but you may still apply in future years if income decreases.

Assessed Value Cap

For homeowners, the assessed value of your principal residence as of January 1 of the tax year must not exceed $1,171,000 in 2024. This is based on your city or town’s property assessment, not the market value. Renters do not have to meet a property value cap, but the building must be subject to local property taxes.

How the Credit Is Calculated

The Senior Circuit Breaker credit is triggered when your property tax—or in the case of renters, the deemed property tax—exceeds 10% of your qualifying income. Here’s how it works:

Compute your qualifying income using the worksheet in Schedule CB of Form 1. Include Social Security, pensions, dividends, and interest.
Determine your eligible housing payments:
- Homeowners use the actual property tax paid during the calendar year, excluding special assessments and water charges.
- Renters use 25% of the total rent paid (Massachusetts treats 25% as the tax portion).
Subtract 10% of qualifying income from your property tax or deemed property tax. The amount above that threshold is your tentative credit.
Compare the tentative credit with the maximum allowed for the tax year. Claim the smaller amount on Schedule CB. For 2024, the maximum is $2,730.

Example

Maria, age 72, is single with qualifying income of $40,000. She paid $4,500 in property taxes on her Worcester condo. Ten percent of her income is $4,000, so the amount above the threshold is $500. Maria claims a $500 credit. If her taxes were $7,000, the amount above the threshold would be $3,000, but the credit is capped at $2,730.

Filing Process

Gather documents: Collect your property tax bills and proof of payment (receipts, bank statements) or rent receipts/lease statements. Have your SSA-1099, pension 1099-R, investment statements, and federal tax return ready.
Download Schedule CB: Whether filing electronically or on paper, you must complete Schedule CB. Most tax software includes the form.
Enter data carefully: The schedule asks for taxes paid, rent paid, property information, and income components. Double-check Social Security amounts because the DOR compares them with SSA records.
File on time: Submit Form 1 with Schedule CB by the April tax deadline, or file for an extension using Form M-4868. Even with an extension to file, any tax due must be paid by April to avoid interest.
Direct deposit refunds: Because the credit is refundable, you can receive it through direct deposit. Provide bank information on Form 1.
Track status: Use the DOR’s “Where’s My Refund?” tool to monitor processing. Expect four to six weeks for paper returns and two to three weeks for e-filed returns.

Documentation Tips

Keep property tax payment records such as canceled checks or online payment confirmations. The DOR may request them during audits.
Renters should retain leases and rent receipts showing total rent paid. Assisted living residents should request an annual statement itemizing rent versus medical care costs.
Store assessment notices from your town; they confirm that your home value falls under the cap.
Maintain income records (SSA-1099, 1099-R, 1099-INT, 1099-DIV, Schedule K-1) in a dedicated folder for easy access during tax season.

Planning Strategies

Monitor income thresholds: If you are close to the limit, consult a financial planner about timing IRA withdrawals or harvesting capital gains. Spreading income across multiple tax years can preserve eligibility.
Appeal assessments if necessary: A lower assessed value can keep you under the property value cap. File abatement applications promptly during your municipality’s appeal window.
Coordinate with housing expenses: If you are considering downsizing, evaluate how rent or condo fees interact with the credit. Renters often receive significant benefits because 25% of rent is treated as tax.
Claim past credits: You can amend returns for the prior three years (for example, file Form CA-6 for 2021, 2022, 2023) if you were eligible but did not claim the credit. Attach the completed Schedule CB for each year.
Combine with local relief: Cities like Boston, Cambridge, and Springfield offer additional senior tax work-off programs and residential exemptions. Layer them for maximum relief.

Coordinating with Other Programs

Property tax deferral: Massachusetts General Laws Chapter 59 Section 5 Clause 41A allows seniors to defer property taxes until home sale. Use the circuit breaker first because it provides cash without creating a lien.
Veterans’ exemptions: Disabled veterans can pair local property tax exemptions with the circuit breaker, further reducing housing costs.
Fuel assistance and rent subsidies: Participation in programs like LIHEAP or Section 8 does not disqualify you unless the subsidy reduces your rent to a nominal amount. Document out-of-pocket payments for the worksheet.
Medical expense deductions: While not part of the circuit breaker, you can itemize medical expenses on your federal return, reducing taxable income and making it easier to stay under the credit’s income limits.

Common Mistakes

Using gross rent instead of the 25% deemed tax: The schedule automatically multiplies rent by 0.25. Do not input the full rent as property tax.
Ignoring water and sewer charges: Only property tax counts. Remove betterment assessments and user fees from your calculation.
Missing the home value cap: Check the January 1 assessment. If it exceeds the cap, you cannot claim the credit for that year, even if your tax bill is high.
Failing to include Social Security: The DOR requires total Social Security benefits, including the non-taxable portion. Leaving it out triggers notices.
Forgetting to sign Form 1 or Schedule CB: Unsigned returns delay processing and can jeopardize refunds.

Frequently Asked Questions

Can I claim the credit if I move midyear? Yes, as long as the property qualified while you occupied it. Pro-rate the taxes or rent paid for the months you lived there.

What if I share a home with relatives? If you own the home jointly, each co-owner can claim a portion of the credit based on their ownership share, provided they meet the age and income criteria.

Does receiving the credit affect my eligibility for other programs? Generally no, because it is considered a state tax refund. However, notify income-based assistance programs if the refund significantly increases your bank balance.

Are mobile home park residents eligible? Yes, if the park is subject to local property tax and you pay a portion through your lot fees. Obtain a statement from the park manager itemizing the tax component.

Additional Resources

Massachusetts DOR Senior Circuit Breaker Guide
DOR customer service line: (617) 887-6367 or toll-free 800-392-6089 within Massachusetts.
Free Tax Help: AARP Tax-Aide and Volunteer Income Tax Assistance (VITA) sites specialize in serving seniors. Schedule appointments early in tax season.

The Massachusetts Senior Circuit Breaker credit is one of the most generous state tax benefits for homeowners and renters on fixed incomes. With careful documentation, awareness of income thresholds, and proactive tax planning, you can unlock thousands of dollars in refunds year after year, helping you age in place with financial stability.