Massachusetts Homestead Exemption Increased to $1 Million

The Massachusetts Legislature has increased the amount of the homestead exemption from $500,000 to $1,000,000. On August 6, 2024, the Massachusetts Legislature passed an emergency bill which put into immediate effect a number of changes to the state’s affordable housing laws, including the Homestead Act. (G.L. c. 188). The Homestead Act provides protection for homeowners whether or not a declaration of homestead has been recorded, but there are significant differences to the extent of the protection available.

Automatic Homestead: All homeowners receive an automatic homestead exemption of $125,000 even if they have not recorded a declaration of homestead.

Declared Homestead: All homeowners who have recorded a declaration of homestead now receive an exemption of $1,000,000.

Elderly or Disabled: All homeowners who are over the age of 62 or who are disabled receive an exemption of $1,000,000. This exemption is doubled for a married couple who are co-owners ($1,000,000 each).

The Homestead Act is complicated. There are limited protections for dependents who live in the home. There are special protections for divorcing homeowners. There are limitations to the exemption for certain types of debts. It also has specific application and some possible limitations when asserted in connection with a bankruptcy case. It’s important to consult an attorney to understand the extent of the protection available to you before you record a declaration of homestead.