Massachusetts Property Tax Rates by Town (2026)

Identically priced homes in neighboring Massachusetts towns can have property tax bills hundreds of dollars a month apart, and lenders count every dollar.

Certified FY2026 town rates from $2.18 to $20.35 per $1,000 of assessed value, Proposition 2 1/2, and local residential exemptions determine your actual bill.

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Applying these rules and rates lets you estimate the monthly tax on any home and see how it affects your mortgage pre-approval.

How Massachusetts Property Tax Is Calculated

Each Massachusetts city or town sets its own property tax rate every year, expressed in dollars per $1,000 of assessed value, and the state certifies it. You can calculate the annual tax before exemptions with one formula:

Annual tax = assessed value ÷ 1,000 × rate

On a home assessed at $600,000 in a community with a $12.40 residential rate, divide $600,000 by 1,000 to get 600, then multiply by $12.40 for an annual tax of $7,440, or about $620 a month.

The rate applies to the assessed value set by local assessors, not your purchase price. The state certifies each community's values every five years to reflect full and fair cash value, with interim-year adjustments in between to track market changes.

Massachusetts towns run on a July 1 to June 30 fiscal year, so FY2026 covers July 1, 2025 through June 30, 2026. FY2027 rates are set in the fall of 2026 and most were not yet posted as of late October 2026, so this guide uses certified FY2026 rates; always confirm the current rate with the local assessor.

FY2026 Property Tax Rates by Town

The table below shows the certified FY2026 residential and commercial rates per $1,000 published by the state Division of Local Services (DLS) for major Massachusetts cities and towns plus the state's highest and lowest, along with the annual tax on a $500,000 assessed home before any exemptions.

As of October 28, 2026, two communities in this table already had certified FY2027 rates: Cambridge at $6.95 residential and $16.99 commercial, and Shrewsbury at $11.38 for both. Confirm the latest rate and whether a residential exemption applies before you make an offer.

Why Some Towns Have a Higher Commercial Rate

Each year local officials hold a classification hearing and choose either one rate for all property or a split rate that shifts part of the tax levy from residential and open space onto commercial, industrial and personal property.

Most Massachusetts communities keep a single rate (where both columns in the table match), while many larger cities and commercial centers split their rates. At the same hearing, officials also vote on whether to adopt a residential exemption, an open space discount or a small commercial exemption.

What a Rate Means for Your Monthly Payment

With most home loans, your lender collects 1/12 of your estimated annual property tax with each monthly mortgage payment through an escrow account and pays the town when bills come due. Here is what that monthly tax looks like on a $600,000 assessed home across five cities using certified FY2026 residential rates before any residential exemption:

On the same $600,000 assessed value, the monthly tax in Pittsfield is more than double Cambridge's, so the town you choose can matter as much to your budget as the purchase price.

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A Lower Rate Doesn't Always Mean a Lower Bill

Your tax bill depends on both the rate and the assessed value, so a low-rate town with high home values can still produce a large annual bill. Across the 343 Massachusetts communities with certified FY2026 rates as of January 1, 2026, statewide values and bills looked like this:

Residential rates fell in 230 communities in FY2026, yet the statewide average single-family bill still rose from $7,730 to $8,113 because assessed values went up. Remember that a lower rate does not automatically mean a lower tax bill. To compare overall housing costs across communities, see our guide to the Cheapest Places to Live in Massachusetts.

Why Your Bill Can Rise More Than 2.5% a Year

Proposition 2 1/2 caps a town's total tax levy, not your individual bill. Many buyers, especially those moving to Massachusetts from out of state, assume it caps their personal bill at 2.5% a year.

State law places two limits on how much property tax a community can collect in a year:

• Levy limit: Total levy can grow only 2.5% over the prior year's limit, plus new growth from new construction or improvements and any voter-approved overrides or exclusions.
• Levy ceiling: Total levy cannot exceed 2.5% of the full cash value of all taxable property; none of the 343 certified communities was at or near its ceiling in FY2026.

Your own bill can rise by more than 2.5% in a single year if your home's assessed value increases by a higher percentage than the town average—such as after neighborhood appreciation or a renovation—or if voters approve an override or exclusion.

Overrides vs. Debt Exclusions

When researching a town, check whether residents recently voted on or are considering either type of ballot measure:

• Proposition 2 1/2 override: Voter-approved measure that permanently raises the community's levy limit base, while keeping the total levy within the 2.5% levy ceiling.
• Debt or capital expenditure exclusion: Voter-approved temporary increase—such as for the life of bonds for a new high school or fire station—that ends once the debt is paid off.

Only a debt, capital expenditure or special exclusion can push a community's levy limit above its levy ceiling.

The Residential Exemption: Savings for Owner-Occupants

A small number of Massachusetts communities let owners who live in their home full-time subtract up to 35% of the community's average residential assessed value from their home's assessed value.

Because the town still collects the same total residential levy, the exemption shifts tax onto non-owner-occupied homes (apartments, rental condos and second homes) and raises the headline residential rate—so the published rate can overstate what an owner-occupant actually pays.

Only about 14 to 18 of the state's 351 cities and towns adopt the residential exemption, and local officials vote on it each year. Communities using it include Boston, Cambridge, Somerville, Chelsea and Everett; ask the local assessor whether the town you are considering offers it.

In cities that adopt the full or near-full exemption, the annual savings are substantial:

• Boston: Set the maximum 35% exemption for FY2026, saving qualified owner-occupants $4,353.74 on their FY2026 bill.
• Cambridge: Adopted a 30% residential exemption alongside its $6.67 per $1,000 FY2026 residential rate, significantly lowering the net bill for resident homeowners.

Buyers shopping in Boston can also pair that ongoing tax reduction with Boston First-Time Home Buyer Programs.

When a New Buyer Qualifies

If you buy in a residential exemption community, the discount does not always carry over automatically at closing:

1. You generally must own and occupy the home as your principal residence on January 1 before the fiscal year starts; in Boston, for FY2027 you must own and occupy on January 1, 2026 and apply by April 1, 2027.
2. If you buy after January 1 from an investor or builder without the exemption, you may pay the unexempted amount until you meet the next January 1 test—so ask your loan officer and attorney whether the seller has it now.

The residential property tax exemption is separate from a Declaration of Homestead, which protects equity in your principal residence from certain creditors rather than lowering your property tax bill; read how that works in our Massachusetts Declaration of Homestead Guide.

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Other Exemptions, Deferrals and Abatements

Even in towns without a general residential exemption, state law offers personal exemptions and tax deferrals for qualifying homeowners:

• Seniors (including Clause 41C exemptions, Clause 41A tax deferrals and local means-tested senior exemptions where adopted)
• Military veterans with service-connected disabilities
• Blind persons
• Surviving spouses and minor children

For age, income, asset and residency rules for older homeowners, see our guide to Massachusetts Senior Property Tax Exemptions.

Appealing Your Assessment

If you believe local assessors have overvalued your home compared with similar properties in your neighborhood, you can apply for an abatement (a reduction in assessed value) with your local board of assessors. Filing deadlines are strict and printed on your tax bill, so contact the assessor's office promptly if your assessment looks inaccurate.

How Property Taxes Affect What You Can Borrow

Mortgage lenders qualify you on your full monthly housing expense—PITI (principal, interest, property taxes and homeowners insurance, plus mortgage insurance if applicable)—along with any condo or HOA fees. You also fund initial tax escrow reserves at closing; see Massachusetts Closing Costs for Buyers for how tax prorations and escrow prepaids work.

Suppose you are shopping with a $500,000 budget and comparing a town with a $9.00 residential rate ($4,500 a year, or $375 a month) against a town with a $15.00 rate ($7,500 a year, or $625 a month).

That $6.00 difference per $1,000 adds $3,000 a year, or $250 every month, which lowers the mortgage principal and interest you can carry because lenders cap your debt-to-income (DTI) ratio. Test how different town tax bills change your price range with our Home Affordability Calculator.

Before You Make an Offer

1. Get the current tax bill and assessed value rather than the listing estimate, and check whether it includes a residential or senior exemption you will not get in year one.
2. Ask your loan officer which tax figure will be used to qualify you if the seller has an exemption that will not carry over immediately.
3. Have pre-approval numbers run with the exact rate of the town where you are offering, since rates in the five-city comparison above range from under $7.00 to over $17.00 per $1,000.

Next Steps

When you compare Massachusetts towns, compare the full monthly payment rather than the listing price alone. A quick look at the local rate per $1,000, the property's assessed value and the town's Proposition 2 1/2 history will keep your budget accurate before you bid.

At Make Massachusetts Your Home (operated by Next Wave Mortgage, LLC), our team compares loan options across multiple wholesale lenders. Checking eligibility requires no hard credit pull, pre-approval typically takes 1 to 3 business days once your documents are in, and you can book a free 15-minute call to run side-by-side payment estimates for your towns.

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