On September 23, 2022, Governor Baker signed bill H.4300 into law, granting Salem homeowners the opportunity to apply for an ADU property tax exemption. The associated home rule petition was proposed by Mayor Kim Driscoll and the Salem City Council, and then sponsored by Representative Paul Tucker and Senator Joan Lovely.
Salem homeowners can have the option to exempt the value of their ADU from their property taxes as long as they rent their ADU for less than or equal to 70% of the fair market value as established by HUD.
To qualify for the tax property exemption, the maximum rent and utilities for an ADU is as follows:
Studio: $1,417.50/month
One bedroom: $1,538.60/month
Two bedrooms: $1,844.50/month
Homeowners interested in applying for the property tax exemption should contact the Assessor's office at 978-619-5608. Applications for the exemption must be submitted on an annual basis.
