Massachusetts has an effective property tax rate of 1.04%, ranking approximately 18th to 20th highest nationally. What makes Massachusetts distinctive is its 351-municipality structure: each city and town independently sets its own tax rate and exemptions, producing dramatic local variation. Boston owner-occupants pay an effective rate as low as 0.77% thanks to the Residential Exemption, while Cambridge homeowners with the $499,263 FY2025 exemption pay less than 0.40%. Proposition 2.5 limits annual levy growth to 2.5% plus new construction growth (est., Tax Foundation 2026 / U.S. Census ACS 2023).
Massachusetts has an effective property tax rate of 1.04%, near the national average of 0.90% and well below high-tax neighboring states like Connecticut (1.54%) and New Jersey (2.23%). The state’s Proposition 2.5 levy cap – limiting annual tax growth to 2.5% plus new construction – has moderated rate increases since 1980. What distinguishes Massachusetts is the extraordinary local variation: Boston owner-occupants with the Residential Exemption pay 0.77%, while Springfield homeowners pay 1.57%, reflecting two entirely different municipal financial situations despite sitting within the same state and under the same assessment rules (est., Tax Foundation 2026).
Massachusetts Property Tax Rates and How Proposition 2.5 Works
Under M.G.L. c. 59 Section 38, all Massachusetts real property must be assessed at 100% of full and fair cash value (fair market value) annually. Each of the state’s 351 cities and towns has its own elected or appointed Board of Assessors that values all real property in that jurisdiction. Tax rates are expressed in dollars per $1,000 of assessed value. For FY2025, residential rates range from $6.35 per $1,000 in Cambridge to $15.68 per $1,000 in Springfield.
The cornerstone of the Massachusetts property tax system is Proposition 2.5 (M.G.L. c. 59 Section 21C), enacted by voter initiative in 1980. Prop 2.5 imposes two concurrent limits: the total annual property tax levy cannot exceed 2.5% of the full and fair cash value of all taxable real and personal property in the municipality, AND the total levy cannot grow by more than 2.5% over the prior year’s levy limit plus an allowance for “new growth” (new construction, improvements, and new parcels). To raise taxes beyond the 2.5% annual growth limit, voters must approve either a permanent Levy Override (ballot majority vote) or a temporary Debt Exclusion (ballot vote for specific capital debt service, such as a new school building).
Many Massachusetts cities and towns adopt a split tax rate, applying a higher rate to commercial, industrial, and personal property than to residential property, shifting the tax burden from homeowners to businesses. The Community Preservation Act (M.G.L. c. 44B) allows municipalities to adopt a 1% to 3% surcharge on annual property tax bills (with exemptions for the first $100,000 of assessed value and for low-income homeowners) to fund affordable housing, historic preservation, and open space programs.
Massachusetts statewide effective rate. On a $580,000 home (near the state median), expect approximately $6,032 per year at the statewide average. Cambridge owner-occupants with the Residential Exemption pay just $2,320 on the same value (est., Tax Foundation 2026 / Census ACS 2023).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $350,000 | $3,640 | $303 | +$490 above avg. |
| $580,000 | $6,032 | $503 | +$818 above avg. |
| $750,000 | $7,800 | $650 | +$1,050 above avg. |
| $1,000,000 | $10,400 | $867 | +$1,400 above avg. |
| $1,500,000 | $15,600 | $1,300 | +$2,100 above avg. |
Estimates use 1.04% statewide effective rate. U.S. average uses 0.90%. No exemptions applied. Source: est., Tax Foundation / Census ACS 2023.
Massachusetts Property Tax Exemptions and Relief Programs
The most impactful property tax exemption available to Massachusetts homeowners is the Residential Exemption (M.G.L. c. 59 Section 5C). This is a local option program – not available statewide – under which cities and towns may exempt up to 35% of the average assessed value of all Class 1 (residential) properties from taxation for qualifying owner-occupants. Over 16 municipalities have adopted the Residential Exemption, including Boston, Cambridge, Somerville, Chelsea, Malden, Waltham, and Brookline. In FY2025, Cambridge offers the most generous version, with a $499,263 assessed value reduction for qualifying homeowners – effectively eliminating most of the property tax bill for a median-value Cambridge home. Boston’s Residential Exemption produces an effective rate of approximately 0.77% for qualifying owner-occupants, compared to the full nominal rate applied to non-owner-occupants.
The Senior Circuit Breaker Tax Credit (M.G.L. c. 62 Section 6(k)) is a refundable Massachusetts state income tax credit for homeowners or renters age 65 or older whose annual property tax bill (or 25% of annual rent paid) exceeds 10% of their total annual income. The credit is refundable, meaning it can produce a direct cash refund even for low-income seniors who owe no income tax. Chapter 50 of the Acts of 2023 (Governor Healey, October 2023) doubled the maximum credit from approximately $1,295 to $2,590 for tax year 2023, with subsequent inflation adjustments raising it to $2,730 for 2024 and $2,820 for 2025.
Veterans receive property tax exemptions under M.G.L. c. 59 Section 5, Clauses 22 through 22F. The HERO Act (Chapter 177 of the Acts of 2024, signed August 2024) added Clause 22I providing automatic CPI indexing of veteran exemption amounts, and Clause 22J giving municipalities the local option to double their veteran exemption amounts through local ordinance.
| Program / Exemption | Benefit | Who Qualifies | Filing Notes |
|---|---|---|---|
| Residential Exemption (M.G.L. c. 59 Sec. 5C) | Up to 35% of average Class 1 assessed value excluded (Cambridge FY2025: $499,263 reduction) | Owner-occupants in municipalities that have adopted the program (Boston, Cambridge, Somerville, Malden, Waltham, Brookline, etc.) | Apply with local assessor; typically annual renewal required |
| Senior Circuit Breaker Tax Credit (M.G.L. c. 62 Sec. 6(k)) | Refundable credit up to $2,820 (2025) | Age 65+; property tax (or 25% of rent) exceeds 10% of total income; homeowner or renter | Filed on Schedule CB attached to MA state income tax return Form 1 |
| Veteran Exemption – Clause 22 (Base) | $400 off tax bill | 10%+ service-connected disability, Purple Heart recipients, Gold Star parents, surviving spouses | Annual application with local assessor; VA documentation required |
| Veteran Exemption – Clause 22A | $750 off tax bill | Loss or loss of use of one foot, hand, or eye; prisoners of war | Annual application with local assessor |
| Veteran Exemption – Clause 22B | $1,250 off tax bill | Loss or loss of use of both feet, hands, or eyes | Annual application with local assessor |
| Veteran Exemption – Clause 22C | $1,500 off tax bill | 100% line-of-duty disability with specially adapted housing | Annual application with local assessor |
| Veteran Exemption – Clause 22D (Full Exemption) | Full property tax exemption | Surviving spouses of armed forces members killed in action or who died as result of service | Annual application with local assessor |
| Veteran Exemption – Clause 22E | $1,000 off tax bill | 100% service-connected disability rating | Annual application with local assessor |
| HERO Act: Clauses 22I and 22J (Enacted Aug. 2024) | CPI indexing of all veteran exemption amounts (22I); local option to double veteran exemption amounts (22J) | 22I applies automatically; 22J requires municipal adoption by ordinance | 22J adoption requires local legislative action by city or town |
Massachusetts Assessment System and Proposition 2.5 Mechanics
Massachusetts requires annual assessment at 100% of full and fair cash value under M.G.L. c. 59 Section 38, making it one of the few states with both annual assessment and full value assessment as a legal standard. Each of the 351 municipalities has its own Board of Assessors that values all real property annually using comparable sales data, income approaches for commercial property, and cost approaches for unique properties. The MA DOR Division of Local Services certifies the accuracy of local assessments through a periodic recertification review and provides technical assistance to local assessors.
Proposition 2.5 creates two simultaneous hard limits. The levy ceiling cap (2.5% of total full cash value of all taxable property) prevents a municipality from taxing more than 2.5% of its total tax base regardless of budgetary needs. The levy limit cap (2.5% annual growth plus new growth) prevents annual levy increases beyond 2.5% without voter approval. A municipality that wants to raise taxes beyond the 2.5% growth limit must place a Levy Override question on the local ballot and obtain majority voter approval. School construction projects commonly use Debt Exclusions – temporary votes that allow the levy to exceed the 2.5% limit for the duration of the debt service, after which it expires.
Property owners who believe their assessment is too high can file an abatement application within three months of the date the actual tax bill is mailed. The application is filed with the local Board of Assessors. If the Board denies the abatement, the owner may appeal to the Appellate Tax Board (ATB), which functions similarly to a tax court.
| System Element | Rule | Impact on Homeowner |
|---|---|---|
| Assessment Basis (M.G.L. c. 59 Sec. 38) | 100% of full and fair cash value assessed annually by local Board of Assessors | Assessed value tracks market value; rises in appreciating markets can increase tax bill even without rate increases |
| Prop 2.5 Levy Ceiling Cap | Total levy cannot exceed 2.5% of full cash value of all taxable property | Municipalities with rapidly appreciating values may find total levy limited by the ceiling before the growth limit |
| Prop 2.5 Annual Levy Growth Cap | Annual levy growth capped at 2.5% plus new growth from new construction and improvements | Prevents sudden, large tax rate increases; provides predictability for homeowners |
| Levy Override | Permanent levy limit increase requires majority vote at local ballot | Voters must approve any permanent tax increases above Prop 2.5 growth limit |
| Debt Exclusion | Temporary levy increase outside Prop 2.5 for specific capital debt service (e.g., school construction) | Temporarily raises bills until bond is retired; expires automatically when debt is paid off |
| Split Tax Rate | Local option to tax commercial/industrial/personal property at higher rate than residential | Shifts tax burden from homeowners to businesses in cities with significant commercial bases (Boston, Worcester) |
| Abatement Appeal | Must be filed within 3 months of actual tax bill mailing with local Board of Assessors | Annual right to contest assessment; if Board denies, can further appeal to the Appellate Tax Board |
| No County Property Tax | Property taxes are exclusively municipal in Massachusetts; no county-level levy | All 351 cities and towns set rates independently; no single county rate applies to all properties in a geographic area |
Major Tax Districts and Municipality Variations in Massachusetts
Massachusetts property tax variation is driven by municipal fiscal decisions, the size and composition of the local tax base, and whether each city or town has adopted the Residential Exemption. Cambridge (0.40% effective rate for qualifying owner-occupants) and Boston (0.77%) post the two lowest effective rates among major Massachusetts cities, both benefiting from large commercial and university tax bases and proactive Residential Exemption adoption. At the other end, Springfield (1.57%) and Worcester (1.33%) carry higher rates reflecting smaller commercial bases relative to the service demands of large urban populations.
Cities like Lowell, Brockton, New Bedford, Lynn, Quincy, and Fall River cluster between 1.13% and 1.21%, representing mid-size Massachusetts cities with moderate commercial bases and typical Prop 2.5 levy dynamics. None of these cities have adopted the Residential Exemption, so all owner-occupants pay on the full assessed value at the residential tax rate.
The table below reflects FY2025 residential tax rates from the MA DOR Division of Local Services, matching the calculator dropdown exactly. Effective rates for Boston and Cambridge account for the Residential Exemption.
| Municipality | FY2025 Rate ($/k) | Effective Rate | Annual Tax on $580k Home | Notes |
|---|---|---|---|---|
| Boston | $11.58 | 0.77% | $4,466 | Residential Exemption adopted; owner-occupants pay significantly lower effective rate. Source: MA DOR DLS FY2025. |
| Worcester | $13.28 | 1.33% | $7,724 | Second-largest city; split tax rate; no Residential Exemption. Source: MA DOR DLS FY2025. |
| Springfield | $15.68 | 1.57% | $9,094 | Highest rate among top 10; smaller commercial base and split rate. Source: MA DOR DLS FY2025. |
| Cambridge | $6.35 | 0.40% | $2,320 | $499,263 Residential Exemption in FY2025 for qualifying owner-occupants; lowest effective rate among top-10 cities. Source: MA DOR DLS FY2025. |
| Lowell | $11.48 | 1.15% | $6,678 | Split tax rate city; no Residential Exemption. Source: MA DOR DLS FY2025. |
| Brockton | $12.11 | 1.21% | $7,024 | Split tax rate city. Source: MA DOR DLS FY2025. |
| New Bedford | $11.31 | 1.13% | $6,560 | Split tax rate city. Source: MA DOR DLS FY2025. |
| Lynn | $10.36 | 1.04% | $6,032 | Split tax rate city; at statewide average. Source: MA DOR DLS FY2025. |
| Quincy | $11.53 | 1.15% | $6,678 | Split tax rate city south of Boston. Source: MA DOR DLS FY2025. |
| Fall River | $11.45 | 1.15% | $6,641 | Split tax rate city; south coast industrial city. Source: MA DOR DLS FY2025. |
| Statewide Average | Varies | 1.04% | $6,032 | All owner-occupied properties statewide. Source: Tax Foundation / Census ACS 2023 (est.). |
Recent Massachusetts Property Tax Law Changes and 2025-2026 Outlook
Chapter 50 of the Acts of 2023, signed by Governor Healey in October 2023, delivered the most significant property tax relief expansion for seniors in decades. The maximum Senior Circuit Breaker refundable tax credit was doubled from approximately $1,295 to $2,590 for tax year 2023, with automatic CPI-based annual adjustments raising it to $2,730 for 2024 and $2,820 for 2025. This means a qualifying senior homeowner in Boston paying $8,000 per year in property taxes and earning $45,000 in annual income now receives a $2,820 cash refund directly from the state, dramatically reducing their effective net property tax cost.
The HERO Act (Chapter 177 of the Acts of 2024), signed in August 2024, expanded veteran property tax benefits in two important ways. Clause 22I provides for automatic annual CPI indexing of all veteran exemption amounts, ensuring that the $400, $750, $1,250, $1,500, and $1,000 base exemptions under Clauses 22 through 22E grow with inflation without requiring repeat legislative action. Clause 22J gives municipalities the local option to pass an ordinance doubling the veteran exemption amounts in their jurisdiction – offering up to $2,000 (instead of $1,000) for 100% service-connected disabled veterans in participating cities and towns.
On the SALT deduction front, Massachusetts took the unusual step of enacting a state-level SALT deduction expansion in 2025, allowing Massachusetts taxpayers to deduct up to $40,000 of state and local taxes on their Massachusetts state income tax return (for adjusted gross incomes up to $500,000). This provides some state-level offset for the federal $10,000 SALT deduction cap, though the federal cap remains fully in effect for federal tax purposes.
| Change | Effective Date | Key Impact | Who Benefits |
|---|---|---|---|
| Chapter 50 of Acts of 2023: Senior Circuit Breaker Doubled | Tax Year 2023 (filed 2024) | Max credit increased from ~$1,295 to $2,590; CPI-indexed annually (2024: $2,730; 2025: $2,820) | MA homeowners/renters age 65+ meeting income and tax/rent threshold |
| HERO Act: Clause 22I (CPI Indexing of Veteran Exemptions) | August 2024 | All veteran exemption amounts (Clauses 22-22F) automatically adjusted for CPI annually | All Massachusetts veterans receiving property tax exemptions |
| HERO Act: Clause 22J (Local Option to Double Veteran Exemptions) | August 2024 – requires local adoption | Municipalities may pass ordinance to double base veteran exemption amounts in their jurisdiction | Veterans in participating municipalities; requires local legislative action |
| MA State SALT Deduction Expansion | Tax Year 2025 | Massachusetts taxpayers may deduct up to $40,000 of state and local taxes on MA state return (AGI up to $500,000) | MA homeowners constrained by the federal $10,000 SALT cap |
| FY2025 State Aid Increases to Municipalities | FY2025 (July 2024) | Chapter 70 education aid and general government aid increases reduced levy pressure in some municipalities | Property owners in municipalities with strong state aid dependence |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only. Massachusetts has 351 independent taxing municipalities, each setting its own residential tax rate and exemption programs. Your actual bill depends on your city or town’s specific FY2025 (or current fiscal year) residential tax rate, whether your municipality has adopted the Residential Exemption and whether you qualify, whether your property is classified as commercial (triggering the higher commercial rate in split-rate towns), and whether your municipality has adopted a Community Preservation Act surcharge. Boston and Cambridge rates shown reflect owner-occupant effective rates including the Residential Exemption – non-owner-occupants in those cities pay substantially more.
What this calculator does not account for:
- The Residential Exemption (up to 35% of average assessed value) if adopted by your city, which can dramatically reduce bills for qualifying owner-occupants in Boston, Cambridge, Somerville, and other adopting communities
- Split tax rate classification – if your property is classified as commercial/industrial rather than residential, you pay the higher commercial rate in many cities
- Community Preservation Act surcharges of 1% to 3% applied by adopting municipalities
- Debt Exclusion additions to the levy that are temporary overrides of the Prop 2.5 annual limit for specific capital projects
How to get an accurate estimate:
- Look up your property’s current assessed value on your city or town assessor’s online parcel viewer or contact the assessor’s office directly.
- Confirm the current residential tax rate for your city or town on the MA DOR Division of Local Services tax rate lookup tool.
- If you live in a municipality with the Residential Exemption (Boston, Cambridge, Somerville, Malden, Waltham, Brookline, etc.), apply for the exemption through your local assessor to receive the reduced rate as a qualifying owner-occupant.
- If you are age 65+ and meet the income threshold, file Schedule CB with your Massachusetts state income tax return to claim the refundable Senior Circuit Breaker Tax Credit (up to $2,820 for 2025).
Data sources: Municipal FY2025 tax rates from MA DOR Division of Local Services. Statewide effective rate from Tax Foundation 2026 and U.S. Census Bureau ACS 2023. Exemption and Prop 2.5 details from Massachusetts General Court. SALT context from IRS Topic 503.
Return to the National Property Tax Calculator to compare Massachusetts with other states.