The Nantucket Board of Selectmen recently voted to keep the 20% residential exemption the same. The property tax exemption applies to Nantucket property owners who reside in their property on a year round basis. State law allows for a local exemption of up to 35%. The majority of selectmen felt it better to wait until the cost of the many capital projects currently underway start showing up on our tax bills to increase the exemption.
Rental Income: If you own a second home and use it yourself you are permitted, under current IRS regulations, to rent the home out for up to 14 days in a calendar year without reporting the rental income. You are also permitted to write off mortgage interest you pay on up to $1.1 million of debt secured by your first and second homes and used to acquire or improve the properties ($1.1 million total). Check with your accountant for more information about your particular situation.