In light of the recently passed Federal Tax Bill, the City of Boston is accepting prepayments before year-end for 2018 third quarter property taxes, normally due February 1st.

Starting in 2018, taxpayers will no longer be allowed to deduct state and local property and income taxes over $10,000 from their federal income taxes. Given the high real estate prices in Boston, especially downtown, many property owners will exceed that $10,000 limit. Others may decide not to itemize in 2018 given higher standard deductions in the new tax bill. But, if you pay your tax bills early – in December – and itemize your 2017 federal income tax, you may be able to deduct the property tax payment from this year’s federal income tax.

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The City of Boston has setup a website with more information on how to prepay your property taxes. Although not due until February 1, 2018, property owners can prepay in person by Dec. 29th or by mail (P.O. Box 9711 Boston, MA 02114-9711) postmarked no later than Dec. 31, 2017. Checks MUST INCLUDE Ward and Parcel Number and Property Address.

Invoices will not go out until January 2018, but you can estimate your tax due from using the amount on your last (November) invoice (any additional tax is still due by 2/1/18).

Online payments will not be available until invoices are issued in January 2018, so prepayments must be mailed with a check or in person.

Estimated state income tax payments for Massachusetts can also be made at this link.

Ed: This post does not constitute tax or financial advice of any kind. Please consult your accountant or attorney as needed.

1 COMMENT

  1. Based on the recently released IRS guidance, on December 27, I recommend this article be revised to state that the City of Boston has not issued any guidance as to whether they will assess and invoice property taxes prior to January 2018. If they assess and invoice in January 2018, the prepayments, regardless of when they are made, won’t be deductible on a 2017 Federal tax return.

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