MA 2023 Circuit Breaker Credit Threshold Amounts - October 31, 2023
The Massachusetts Department of Revenue has updated the real estate tax credit against personal income tax available to a Massachusetts taxpayer age 65 or older who owns or rents his or her principal residence and meets eligibility requirements. Known as the “circuit breaker credit,” the credit is based upon the actual real estate taxes or rent paid by an eligible taxpayer. For 2023, the taxpayer’s “total income” cannot exceed $69,000 ($64,000 for 2022) for a single individual who is not the head of a household, $86,000 ($80,000 for 2022) for a head of household, and $103,000 ($96,000 for 2022) for married couples filing a joint return. For tax year 2023, the assessed valuation threshold amount, before the residential exemptions but after abatements, of the homeowner’s principal residence may not exceed $1,025,000 ($912,000 for 2022). The credit available in 2023 for renters is the amount by which 25% of the rent actually paid by the taxpayer during the taxable year for the occupancy of the principal residence exceeds 10% of the taxpayer’s total income for the taxable year, provided it does not exceed the maximum credit amount of $2,590 ($1,200 for 2022). The credit available in 2023 for homeowners is the amount by which the taxpayer’s property tax payments in the current tax year, including water and sewer use charges paid to a municipality, but excluding any abatement or exemption granted, exceeds 10% of the taxpayer’s total income, for the taxable year, provided it does not exceed the maximum credit amount of $2,590 ($1,200 for 2022). (Massachusetts Technical Information Release No. 23-11, 10/30/2023.)