MARBLEHEAD — For many longtime Marblehead residents, the homes they raised their families in represent decades of memories and a lifetime of investment.

But as property taxes and the overall cost of living continue to rise, remaining in those homes can become increasingly difficult for seniors living on fixed incomes.

That reality prompted Marblehead Finance Committee Vice Chair Molly Teets to begin researching options to support them.

“I started doing research for a municipal program two or three years ago, and it was after a conversation I had with my neighbor,” she said. “She was worried that, because of inflation and rising costs, her friends wouldn’t be able to stay in their homes. That got me thinking, ‘What options do seniors have?’”

That question eventually grew into Marblehead’s new means-tested senior property tax exemption program, an initiative designed to help senior homeowners whose property taxes remain a significant burden even after receiving available state tax relief.

The program was approved by Town Meeting in 2025 after more than a year of research and preparation, then moved through the state legislative process by Jenny Armini before being signed into law by Gov. Maura Healey on April 29, 2026.

Unlike many existing senior tax relief programs, Marblehead’s exemption is funded and managed by the town rather than the state. It is also designed to supplement — not replace — the Massachusetts Senior Circuit Breaker Tax Credit, which Teets called the first line of support for many seniors.

The state’s Senior Circuit Breaker provides a refundable income tax credit to eligible residents age 65 and older whose property taxes, along with half of their annual water and sewer costs, exceed 10% of their income.

For the 2025 tax year, the maximum credit is $2,820. The program is also available to eligible renters based on a separate calculation of their rent burden, and residents who do not normally owe state income taxes can still receive a refund through the program.

Seniors who did not file for the credit in previous years may also amend prior returns and apply for the benefit for up to three years after the filing deadline.

“What our program does is we’re sort of that second line of defense,” Teets said. “For those seniors who are maxing out the circuit breaker and it’s still not achieving that goal of reducing property taxes to 10% of their income, that’s when our municipal property tax exemption kicks in.”

Marblehead’s new exemption is only available to homeowners. To qualify, residents must be at least 65 years old and must have owned and occupied their Marblehead home as their primary residence for at least 10 years. If the home is jointly owned, the co-owner must be at least 60 years old.

The property must also be assessed at or below Marblehead’s average assessed home value, currently $1,291,507.

The Select Board will establish income limits annually. Teets said she plans to recommend that the first year’s limits align with the state Circuit Breaker program, which currently allows income up to $75,000 for single residents, $94,000 for heads of household, and $112,000 for married couples filing jointly.

The legislation also includes an asset requirement intended to ensure the program serves residents who need assistance. Teets said she plans to recommend that, during the first year, the restriction primarily exclude residents who own a second home rather than creating stricter asset limitations.

The Select Board is expected to discuss the final income and asset guidelines and the total annual funding cap during a July meeting. For fiscal year 2027, the town anticipates setting the maximum individual exemption at $2,000, with a total program cap of $200,000.

Based on research of comparable communities, the town estimates roughly 100 senior homeowners could participate in the first year.

The application process is currently being developed by the Assessor’s Office, with applications expected to open in November. Residents will likely need to provide proof of age, copies of their 2025 federal and state tax returns, a copy of their filed Senior Circuit Breaker Schedule, and trust documents if the property is held in a trust. Eligible residents are expected to see the exemption reflected on their third- or fourth-quarter fiscal year 2027 tax bills.

Because the program is new, Teets said the town expects to make adjustments as officials learn more about how many residents apply and what needs arise.

Teets said developing the program involved studying approximately 20 Massachusetts communities with similar tax relief initiatives and speaking with assessors in seven communities to understand what worked well and what changes they would make.

Select Board Chair Dan Fox said Teets was instrumental in making the program a reality.

“Molly and I worked on this, but Molly is the brains behind it,” Fox said.

Teets said, “We fully expect that we’re going to be learning a lot during the year. The language of the law was really meant so that the program could be adjusted. We wanted to set up the framework and then tailor it to what Marblehead needs.”

Teets said the ultimate goal has remained the same as the conversation that started her research years ago: making sure longtime residents have more options to remain in the community they call home.

“It’s really targeted for the people and the seniors who need it the most,” she said.