The residential exemption is a tax benefit many cities offer to homeowners. To qualify, you must *owner occupy* the home as your principal residence. In many cities, the savings is equivalent to anywhere from $1000-$2000/year on taxes. It's not a a tax credit, but instead a reduction on your quarterly property tax bill so usually you see the savings very quickly (depending on which town/city and what time of the year you purchase, please see your attorney and specific city website for application info). 

Also note, the fiscal year runs from July 1st to June 30th, and in most cities you must owner occupy a property as of the January 1st preceding the fiscal year for which you are applying for.

When looking to purchase a home, varying tax rates can impact your buying power, so it's a detail to pay attention to.. and in these cities/towns, there's a huge savings potential when it comes to your monthly mortgage payment. Remember, property taxes are for life- even when you pay off that 30-year mortgage!! :-)

*Tax savings below are rounded to the nearest dollar; please click blue link for more info

CIty of Boston Residential Exemption 

FY 2014 Tax Rates (per $1000)

Residential Tax Rate = $12.58 

Tax Savings for Residential Exemption = $1764 

Town of Brookline Residential Exemption 

FY 2014 Tax Rates (per $1000)

Residential Tax Rate = $11.39

Tax Savings for Residential Exemption = $1995

CIty of Waltham Residential Exemption 

FY 2014 Tax Rates (per $1000)

Residential Tax Rate = $13.43

Tax Savings for Residential Exemption = $1052

Town of Watertown Residential Exemption 

FY 2014 Tax Rates (per $1000)

Residential Tax Rate = $14.96

Tax Savings for Residential Exemption = $1278 

CIty of Cambridge Residential Exemption 

FY 2014 Tax Rates (per $1000)

Residential Tax Rate = $8.38 

Tax Savings for Residential Exemption = $1807

CIty of Somerville Residential Exemption 

FY 2014 Tax Rates (per $1000)

Residential Tax Rate = $12.66

Tax Savings for Residential Exemption = $1908

*All information collected for city websites & subject to error. Please consult your specific city website for more info as well as your attorney/lender for when you can apply and how quickly your mortgage payment can reflect the savings if not immediate.