Housing
Massachusetts renters could build a move-in savings account
The tax break would cover only first and last month’s rent, a one-month deposit and lock-and-key costs. It starts with 2026 tax filings and can be opened alone or with another filer.
Massachusetts renters could use a new tax-favored account to cover the biggest costs of moving in. The proposal is limited to first and last month’s rent, a one-month security deposit and lock-and-key expenses.
- Available starting Jan. 1, 2026
- Can be opened alone or jointly
- Covers first and last month’s rent
- Also covers a one-month deposit and lock changes
- In Massachusetts, the hardest part of getting a lease can come before the first night in the apartment
In Massachusetts, the hardest part of getting a lease can come before the first night in the apartment. A proposal in the Legislature would create a rental savings account that lets an individual, alone or jointly with others, set money aside with a financial institution for the upfront costs of moving into a permanent home in the commonwealth.
Beginning Jan. 1, 2026, the account could be used for a narrow list of expenses tied to move-in day: first and last month’s rent, a security deposit equal to one month’s rent, and the purchase and installation of a lock and key. The measure has five sponsors, including Republican Sen. Bruce Tarr and four cosponsors from both parties.
A cash problem, not just a rent problem
The point of the account is not to lower monthly rent. It is to blunt the shock of paying so much at once when someone is trying to secure housing. For a renter who has found a place but cannot gather the deposit, the first and last month’s rent and the cost of changing the locks, the move can fall apart over cash rather than housing supply.
That makes the proposal less like a broad subsidy and more like a tool for the moment when a lease is within reach but still out of reach. It is built around the upfront bill that can keep people from moving quickly when they need to.
What the money could actually cover
The bill draws a tight line around eligible costs. It limits the account to rent for a unit that will serve as a permanent residence, plus the one-month security deposit and the lock-and-key expense.
That narrow design matters because it keeps the account focused on the first hurdle renters face, not on ongoing household expenses. If the measure becomes law, the account would be a way to save for the moment of arrival, not a general-purpose housing fund.