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Link to Pre-Qualification Letter & Application

Link to Additional Residential Exemption FAQs

The Town of Edgartown has NOT adopted the Residential Exemption. This exemption is a local option that must be voted on annually by the Selectboard, typically in November at the Tax Classification Hearing.

The Assessing Department believes it is important to prepare in advance for the potential adoption of a residential exemption should the Selectboard choose to implement one in the future. Implementing such an exemption would involve significant staffing and administrative requirements, and the resulting workload for assessing staff would be substantial.

More importantly, assessors would need to immediately determine how many properties qualify for the exemption in order to finalize the tax rate with the Department of Revenue. Establishing this number is critical. While we currently have well-informed estimates of the number of qualifying properties, the actual total could differ by hundreds. Such uncertainty presents meaningful risks, including the potential to create a significant overlay deficit.

For this reason, pre-qualifying taxpayers is an important step in the process. Identifying likely qualifying properties in advance allows the Assessing Department to develop a more accurate estimate of the number of eligible properties and the overall fiscal impact of the exemption. This preparation helps reduce uncertainty during the tax rate-setting process and ensures the Town can implement the exemption in a controlled and administratively manageable manner if it is adopted.

What is the residential exemption & how is it adopted?

The Residential Exemption is a fixed reduction applied to the assessed value of qualifying residential properties. All approved applicants receive the same reduction amount.

The Selectboard votes each year whether or not to adopt the exemption. The amount of the exemption must also be voted by the Selectboard and may be no more than 50% of the average residential value based on all residential properties in the residential class (Class 1).

How is the residential exemption determined?

The exemption is calculated as a percentage of the average residential value within the community, meaning the reduction amount changes each year depending on property values. 

Once the Selectboard has adopted the exemption and voted the percentage, the assessor determines the amount of value to be exempted from those qualifying parcels by calculating the following:

1. The total assessed value for all Class 1 properties, including vacant parcels.
2. The total number of parcels within the Class 1 properties.
3. Divide the Total Class 1 valuation by the total number of Class 1 parcels. This is the average assessed value of all class one residential parcels.
4. Multiply the exemption percentage (up to 50% for Edgartown), as voted by the Selectboard, by the average value. This is the amount to be exempted for each qualifying parcel.
5. Multiply the number of exemptions granted by the exemption amount.
6. Subtract the aggregate exemption amount from the total Class 1 value. The residential tax rate for all Class 1 properties will be calculated from this adjusted value.

Who qualifies?

To qualify for the Residential Exemption, a taxpayer must own and occupy the property as their domicile. A domicile is the place where you maintain your permanent home and intend to return. Indicators of domicile typically include where you:

• File your income taxes

• Register to vote

• Register your motor vehicles

• Maintain your primary residence

• Complete census documentation

To be eligible, you must have owned and occupied the property as of January 1 of the relevant year.

If you recently purchased a property, you will become eligible in the first fiscal year following the January 1 ownership and occupancy date.

Example:
To qualify for the Fiscal Year 2027 Residential Exemption (July 1, 2026 – June 30, 2027), the property must be owned and occupied on or before January 1, 2026.

Do I need to apply every year?

The Residential Exemption does not require an annual application provided ownership and occupancy have not changed. Granted exemptions will carry over to the following fiscal years, however the exemption would be removed if qualifications are no longer met.

I’ve placed my house in a Trust, do I still qualify?  

A property held in a trust may qualify for the exemption if the owner is listed as a Trustee and maintains a beneficial interest in the property, most commonly as a beneficiary to the trust. However, properties owned by an LLC or other business entity are not qualified ownership types for the exemption.

Will this affect my Statutory exemption?

No. Statutory exemptions such as Surviving Spouse, Veterans (disabled), Legally Blind, Seniors and others will not be affected. You will continue to receive your full exemption.

Please note: Massachusetts General Laws require that a taxpayer cannot pay less than 10% of the full tax due. If a taxpayer receives both a Statutory and Residential exemption and amount due is less than 10% the Town will adjust the amount of the Residential Exemption.

Before you apply, ask yourself:

• Did I own and occupy this dwelling as my domicile on January 1st of this year? 
• If ownership is held in a Trust, am I both a trustee and beneficiary?
• Did I use this address to file my Federal and MA state income taxes, and can I provide evidence?
• Have I updated my MA state issued ID/license, car registration, voter registration to show this address, and can I provide evidence?
• Do I currently have the Residential Exemption on any other property or in any other community?

If your answer is NO to any of the questions above, you may not qualify and should reach out for more information.

FY27 residential exemption estimator: