Clause 22 Property Tax Exemptions By Disability Type
Massachusetts Disabled Veteran Property Tax Exemptions in 2026
Mass.gov, Local Property Tax Exemptions for Veterans
Mass.gov, Guide to Real Estate Tax Exemptions (PDF)
MGL Ch. 59, §5
Massachusetts exempts disabled Veterans from a portion of their property tax under a tiered “Clause” system in MGL Chapter 59, Section 5. Benefits range from $400 annually for a 10% service-connected rating to full tax elimination for paraplegic or blind Veterans. The exemption you receive depends on your specific disability type, not just the percentage. Filing is annual through your local Board of Assessors.
Clause 22: 10%+ Disability
- Tax savings: $400 annual exemption for Veterans with a 10% or higher service-connected disability rating
- Also covers: Purple Heart recipients and Gold Star parents qualify under the same $400 exemption tier
- Domicile rule: Must own and occupy the property as primary residence on July 1 of the tax year
Clause 22E: 100% Disabled
- Tax savings: $1,000 annual exemption for Veterans rated 100% service-connected disabled by the VA
- Surviving spouse: Unremarried surviving spouse of a 100% disabled Veteran receives the same $1,000 benefit
- Annual filing: Must re-apply each year with local Board of Assessors, not an automatic renewal
Clause 22F: Full Exemption
- Tax savings: Complete property tax elimination for paraplegic Veterans or those with 100% service-connected blindness
- Dollar value: On a $500,000 home at 1.20% rate, the full exemption saves approximately $6,000 per year
- SAH eligible: Veterans who received specially adapted housing grants may qualify under Clause 22C ($1,500)
VA Loan Impact
- PITI reduction: Clause 22F eliminates tax escrow entirely, saving up to $500 per month on a $500,000 home
- Buying power: $500 monthly savings adds roughly $60,000 in VA loan purchasing capacity at current rates
- Funding fee: 100% disabled Veterans also receive a separate federal VA funding fee exemption at closing
Top questions before you dig in
How much does a 100% disabled Veteran save on property tax in Massachusetts?
A 100% service-connected disabled Veteran receives a $1,000 annual exemption under Clause 22E. Paraplegic Veterans or those with 100% service-connected blindness receive a full property tax exemption under Clause 22F, which on a $500,000 home at a 1.20% rate saves approximately $6,000 per year.
Do you have to re-apply for the Massachusetts Veteran exemption every year?
Yes. Massachusetts requires annual filing with your local Board of Assessors. The exemption does not automatically renew. Filing deadlines vary by municipality, so contact your assessor’s office for the specific deadline in your city or town.
What residency requirement applies to the Massachusetts Veteran exemption?
You must have been a Massachusetts resident for six months before entering Military service, or you must have lived in Massachusetts for five consecutive years immediately before filing. You must also own and occupy the property as your domicile on July 1 of the tax year.
The Bottom Line Up Front
Massachusetts provides property tax exemptions for disabled Veterans through seven Clauses under MGL Chapter 59, Section 5. Benefits range from $400 per year (Clause 22, 10%+ disability) to full tax elimination (Clause 22F, paraplegic or blind Veterans). Unlike states that offer a single binary exemption, Massachusetts scales the benefit by disability type and severity. The system is modest in dollar terms for most Veterans, but Clause 22F delivers meaningful savings that change your VA loan math.
The practical takeaway: if you have a partial disability rating, the exemption saves $400 to $1,500 per year depending on your specific condition. That barely registers on a VA loan qualification. If you qualify for Clause 22F (full exemption), the benefit eliminates your entire property tax bill and adds real buying power. Every Veteran homeowner in Massachusetts should file regardless of the dollar amount, because the exemption is free and requires only an annual trip to the assessor’s office.
What To Do Based On Your Situation
- Buying a home with 100% disability: File for Clause 22E ($1,000 exemption) with your local Board of Assessors after closing. If you are paraplegic or have 100% service-connected blindness, file under Clause 22F for full exemption instead. Notify your lender so they adjust escrow correctly.
- Already own in MA and have not filed: Apply now at your municipal assessor’s office. You must file annually, so if you missed prior years, ask your assessor whether retroactive claims are possible in your municipality.
- Partial disability rating (10% to 90%): File under Clause 22 for the $400 exemption. If you have specific qualifying conditions (loss of limb, POW status, Purple Heart), you may qualify for a higher tier under Clauses 22A through 22C.
- Surviving spouse: Unremarried surviving spouses of qualifying Veterans receive the same exemption tier. File with the assessor using the Veteran’s documentation plus marriage and death certificates.
How Does The Massachusetts Clause System Work?
Massachusetts does not offer a single flat exemption for all disabled Veterans. MGL Chapter 59, Section 5 creates a tiered system of seven Clauses (22 through 22F), each with a specific dollar amount and eligibility condition. Your exemption depends on the type and severity of your disability, not just the VA percentage.
This structure means two Veterans with identical 100% ratings can receive different exemptions. A 100% schedular-rated Veteran receives $1,000 under Clause 22E. A paraplegic Veteran with 100% disability receives full tax elimination under Clause 22F. The distinction is the nature of the disability, not the rating percentage alone.
| Clause | Exemption | Who Qualifies | Annual Savings at 1.20% |
|---|---|---|---|
| Clause 22 | $400 | 10%+ service-connected disability, Purple Heart recipients, Gold Star parents | $400 |
| Clause 22A | $750 | Medal of Honor, DSC/Navy Cross/Air Force Cross, loss of one hand/foot/eye, former POW | $750 |
| Clause 22B | $1,250 | Loss of both hands, both feet, both eyes, or one hand and one foot | $1,250 |
| Clause 22C | $1,500 | Permanent and total disability with VA specially adapted housing grant | $1,500 |
| Clause 22D | Full exemption | Surviving spouse of service member whose death was service-connected, or MIA | $6,000 on $500K home |
| Clause 22E | $1,000 | 100% service-connected disability (schedular or IU) | $1,000 |
| Clause 22F | Full exemption | Paraplegic Veterans or 100% service-connected blindness | $6,000 on $500K home |
Process Watchpoint: Each Clause offers either a flat dollar exemption or an assessed value reduction, whichever results in the greater tax abatement. For example, Clause 22 is $2,000 off assessed value or $400 flat. On homes assessed above roughly $33,000, the flat amount applies. On lower-assessed properties, the assessed value reduction may save more. Your assessor calculates which method produces the larger benefit. Also note: Clause 22E ($1,000) is lower than Clause 22C ($1,500). If you are 100% disabled AND received a specially adapted housing grant, file under 22C for the higher benefit.
HERO Act (2024): Massachusetts passed the HERO Act in August 2024, introducing two new local options. Clause 22I lets municipalities tie annual exemption increases to the Consumer Price Index (CPI). Clause 22J lets municipalities double the exemption amounts by vote of town meeting or city council. Under 22J, a Clause 22E Veteran could receive $2,000 instead of $1,000. Check with your local assessor whether your municipality has adopted either option.
What Are The Residency And Ownership Requirements?
Massachusetts has stricter residency rules than most states. You must meet one of two residency tests, and you must own and occupy the property as your primary residence on a specific date each year.
- Residency test option 1: You were a Massachusetts resident for at least six months immediately before entering Military service. This covers Veterans who enlisted from Massachusetts and returned after service.
- Residency test option 2: You have lived in Massachusetts for five consecutive years immediately before filing the exemption application. This covers Veterans who moved to Massachusetts after service.
- Domicile date: You must own and occupy the property as your primary domicile on July 1 of the tax year. If you close on a home after July 1, you cannot claim the exemption until the following tax year.
- Ownership: You must be a full or partial owner of the property. The exemption applies to the dwelling and the land it sits on. Condominiums and townhouses qualify as long as you hold an ownership interest.
What Is The Exemption Worth In Real Dollars?
Massachusetts has an average effective property tax rate of approximately 1.20%, above the national average but well below New Jersey (2.23%) or neighboring Connecticut (1.79%). The Clause 22 through 22E exemptions are flat dollar reductions off your tax bill, not percentage-based. Only Clause 22F eliminates the tax entirely.
| Home value | Annual tax at 1.20% | After Clause 22 ($400) | After Clause 22E ($1,000) | After Clause 22F (full) |
|---|---|---|---|---|
| $400,000 | $4,800 | $4,400 | $3,800 | $0 |
| $500,000 | $6,000 | $5,600 | $5,000 | $0 |
| $600,000 | $7,200 | $6,800 | $6,200 | $0 |
| $750,000 | $9,000 | $8,600 | $8,000 | $0 |
Deal Math: A paraplegic Veteran (Clause 22F) buying a $600,000 home near Joint Base Cape Cod at a 1.10% effective rate saves $6,600 per year, $550 per month. Combined with the VA funding fee exemption (saving $12,900 upfront on a $600,000 loan at 2.15%), the total first-year benefit is $19,500. A 100% disabled Veteran (Clause 22E) on the same home saves $1,000 per year, $83 per month, a meaningful but far more modest benefit.
How Does The Clause System Compare To Other New England States?
Massachusetts sits in the middle of New England for Veteran property tax benefits. The Clause system provides more granularity than most states, but the dollar amounts for partial disability are among the lowest in the region. Only Clause 22F competes with full-exemption states.
| State | 100% P&T benefit | Effective tax rate | Dollar savings on $500K home |
|---|---|---|---|
| Massachusetts (Clause 22E) | $1,000 flat exemption | ~1.20% | $1,000/year |
| Massachusetts (Clause 22F) | Full exemption | ~1.20% | $6,000/year |
| Connecticut | $10,000 off assessed value | ~1.79% | ~$1,790/year |
| New Hampshire | $4,000 tax credit | ~1.86% | $4,000/year |
| Rhode Island | $10,000 off assessed value (+ municipal) | ~1.40% | $140 to full (varies) |
How Does This Affect Your VA Loan Qualification?
The VA loan impact depends entirely on which Clause you qualify for. Clauses 22 through 22E produce modest PITI reductions that rarely change a qualification outcome. Clause 22F transforms the math.
- PITI impact (Clause 22E): On a $500,000 home at 6.5% with $0 down, the $1,000 annual exemption reduces your monthly escrow by $83. Your PITI drops from roughly $3,660 to $3,577. That is a small reduction but unlikely to move you from denial to approval.
- PITI impact (Clause 22F): On the same $500,000 home, full tax elimination removes $500/month from escrow. Your PITI drops from $3,660 to $3,160, a 14% reduction. That is a qualification-changing difference.
- DTI improvement (Clause 22F): At $7,000/month gross income, the $500 reduction drops your housing DTI from 52.3% to 45.1%. Files that would otherwise Refer in AUS may get clean automated approvals.
- Buying power shift: The Clause 22F full exemption supports an additional $55,000 to $65,000 in purchase price at 6.5%. Clause 22E adds roughly $10,000 in buying power.
Who Qualifies For The Surviving Spouse Exemption?
Massachusetts extends Veteran property tax exemptions to surviving spouses under specific conditions. The surviving spouse receives the same Clause exemption the Veteran held, provided they remain unremarried and continue to own and occupy the property.
Surviving spouses of service members whose death was service-connected, or who are MIA with a presumptive finding of death, qualify for a full property tax exemption under Clause 22D. This is separate from Clause 22F and does not require paraplegia or blindness. Remarriage terminates eligibility under all Clauses.
To file, the surviving spouse provides the Veteran’s DD214, VA documentation of service-connected death or disability, marriage certificate, death certificate, and proof of domicile. File annually with the local Board of Assessors under the same timeline as the Veteran exemption.
Where Do Veterans File In Massachusetts?
You file with the Board of Assessors in the city or town where your property is located. Massachusetts has 351 municipalities, each with its own assessor’s office. This is a local filing, not a state-level application.
- Find your local assessor: Search “[Your City] MA Board of Assessors” or contact your city or town clerk. Near Military installations: Bourne and Sandwich (Joint Base Cape Cod), Natick and Framingham (Natick Soldier Systems Center), Devens and Ayer (former Fort Devens area), Hanscom and Bedford (Hanscom AFB).
- Obtain the application: Request the Veterans Property Tax Exemption form from your assessor. Forms are standardized under MGL Chapter 59, Section 5 but distributed locally. Some municipalities offer online applications.
- Provide documentation: VA disability rating letter confirming your service-connected disability type and percentage, DD214 showing honorable discharge, proof of Massachusetts domicile (driver’s license matching property address), and property deed showing ownership.
- File annually: Massachusetts requires re-application every tax year. The filing deadline varies by municipality. Contact your assessor for the specific deadline. Missing the deadline means losing the exemption for that year.
Process Watchpoint: The annual filing requirement catches many Veterans. Unlike New Jersey or Texas where the exemption continues automatically once approved, Massachusetts requires you to re-apply each year. Set a calendar reminder 30 days before your municipality’s filing deadline. If you miss it, you pay full taxes for that year with no retroactive adjustment in most municipalities.
What About Military Installations Near Massachusetts Homes?
Massachusetts has several active and reserve Military installations. Property tax rates vary significantly by municipality, which affects the real-dollar value of your exemption, especially under Clause 22F.
| Military installation | Nearby municipalities | Approx. effective rate | Clause 22F savings ($500K home) |
|---|---|---|---|
| Joint Base Cape Cod | Bourne, Sandwich, Falmouth | 0.90% | $4,500/year |
| Hanscom AFB | Bedford, Lexington, Lincoln | 1.10% | $5,500/year |
| Natick Soldier Systems | Natick, Framingham | 1.25% | $6,250/year |
| Westover ARB | Chicopee, Springfield | 1.70% | $8,500/year |
How Does The Exemption Interact With Your Escrow Account?
Your VA loan servicer collects property taxes through monthly escrow. The exemption reduces the tax owed, but your lender will not adjust escrow automatically. You need to request a re-analysis after the exemption is approved.
If you close on a home before your exemption is approved, the lender escrows at the full tax rate. Once the assessor confirms the exemption, request an escrow re-analysis from your servicer. Your monthly payment will decrease, and the lender will refund any overage from the escrow surplus. For Clause 22F, this refund can be substantial, potentially several thousand dollars.
For Clause 22 through 22E, the escrow adjustment is relatively small ($33 to $125 per month depending on the Clause). For Clause 22F, the entire tax escrow goes to zero, which is a significant monthly payment change your servicer needs to process.
The Bottom Line
Massachusetts provides seven tiers of disabled Veteran property tax exemptions under MGL Chapter 59, Section 5. Most Veterans with partial disability ratings receive $400 to $1,500 annually, modest savings that help but do not transform your housing costs. The major exception is Clause 22F, which fully eliminates property tax for paraplegic Veterans and those with 100% service-connected blindness, saving $4,500 to $9,000 per year depending on location. File annually with your local Board of Assessors. The exemption requires yearly renewal. Combined with the federal VA funding fee exemption and reduced closing costs, the total benefit package for severely disabled Veterans buying in Massachusetts is substantial.
Frequently Asked Questions
Does IU (Individual Unemployability) qualify for Clause 22E?
If the VA classifies you as 100% disabled due to Individual Unemployability and pays at the 100% rate, you qualify for the $1,000 Clause 22E exemption. IU does not qualify for Clause 22F (full exemption), which requires paraplegia or 100% service-connected blindness specifically.
Can I claim a higher Clause if my disability worsens?
Yes. If your VA rating changes or you develop a qualifying condition for a higher Clause, you can file under the new Clause in the next tax year. Provide your updated VA rating letter to your local Board of Assessors when you re-apply.
Is there a Veteran exemption for partial ratings below 10%?
No. Clause 22, the lowest tier, requires a 10% or higher service-connected disability rating. Veterans with 0% service-connected ratings or non-service-connected disabilities do not qualify for any Veteran property tax exemption under MGL Chapter 59, Section 5.
Can I get the exemption on a condo?
Yes. The exemption applies to any dwelling and the land it occupies, including condominiums and townhouses. You must own an interest in the unit and occupy it as your primary domicile on July 1 of the tax year.
What if I close on my home after July 1?
You cannot claim the exemption for that tax year. The domicile requirement is measured on July 1. You would file for the following tax year once you have established the property as your domicile by the next July 1.
Does the exemption cover all property tax levies?
The exemption reduces your total property tax bill by the Clause amount (or eliminates it entirely under 22F). Massachusetts property tax is assessed as a single combined rate covering municipal, school, and other levies. The exemption applies against the total.
Can I combine the property tax exemption with the VA funding fee waiver?
Yes. The VA funding fee exemption is a separate federal benefit. A 100% disabled Veteran receives both: the Clause 22E property tax exemption ($1,000/year) and zero VA funding fee at closing. On a $500,000 purchase, the combined first-year benefit is $11,750.
Will my lender adjust escrow automatically after the exemption?
No. Once the exemption appears on your municipal tax record, request an escrow re-analysis from your loan servicer. Your monthly payment will decrease and the lender will refund any escrow overage. Do not wait for the annual review.
How does Massachusetts compare to other states for Veteran property tax benefits?
Massachusetts is middle-of-pack for New England. The Clause 22E ($1,000 flat) is modest compared to New Hampshire’s $4,000 credit or Connecticut’s $10,000 assessed-value reduction. Clause 22F (full exemption) is competitive with any state, but only paraplegic or blind Veterans qualify.
What happens to the exemption if I move within Massachusetts?
You must file a new application with the Board of Assessors in the new municipality. The exemption does not transfer automatically. File as soon as possible after establishing your new domicile so you do not miss the filing deadline.
Is the exemption retroactive if I did not file in prior years?
Retroactive filing policies vary by municipality. Some assessors allow claims for prior tax years if you were eligible but did not file. Contact your local Board of Assessors to ask about their retroactive filing policy.
What agency administers Veteran benefits in Massachusetts?
The Executive Office of Veterans Services (formerly the Massachusetts Department of Veterans’ Services) oversees Veteran benefits statewide. However, property tax exemptions are filed locally with your municipal Board of Assessors, not through the state office. The state office can help with eligibility questions at 617-210-5480.
