Key points
- Bills follow a July-to-June fiscal year, based on values as of the preceding January 1.
- Proposition 2½ limits a community’s total levy, not each owner’s bill. An individual bill can rise faster than 2.5%.
- Where a city has adopted the residential exemption, owner-occupants must apply. It does not carry over from the seller.
- Abatement applications are due by the first installment date of the actual tax bill, and the tax must still be paid on time.
The calendar
Massachusetts municipalities run on a fiscal year from July 1 to June 30. Assessments reflect value as of January 1 before the fiscal year begins. Communities bill either quarterly or semiannually, and unpaid tax accrues interest at 14% a year from the due date.
| Billing system | Usual due dates | Notes |
|---|---|---|
| Quarterly | August 1 and November 1 (preliminary); February 1 and May 1 (actual) | The actual bill, issued once the rate is set, is the one that starts the abatement clock |
| Semiannual | November 1 and May 1 | Dates move later if bills are mailed late |
How a bill is calculated
The tax equals the assessed value divided by 1,000, multiplied by the tax rate. A home assessed at $800,000 in a community with a residential rate of $11.00 per $1,000 would owe $8,800 for the year. That is the base tax before exemptions, any Community Preservation Act surcharge or other bill adjustments; the actual bill governs. Many cities set a lower residential rate and a higher commercial rate, a choice made each year when the rate is classified.
Assessed value is a mass appraisal of market value as of January 1. It can differ from what a particular home would sell for. Compare your assessment with similar homes nearby on the assessors’ online database.
What Proposition 2½ does and does not limit
Proposition 2½ sets two limits on a community’s total property tax levy. The levy ceiling is 2.5% of the full value of all taxable property. The levy limit can grow by 2.5% a year, plus an allowance for new construction. Voters can raise the limit permanently with an override, or temporarily for a specific project with a debt exclusion.
Because these limits apply to the total, an individual bill can rise faster than 2.5% when values shift between property types, or when voters approve an override or exclusion.
The residential exemption
A city or town may adopt a residential exemption, which lowers taxes for eligible owner-occupied homes and shifts the residential tax burden toward other residential property, including higher-valued homes. Where adopted, it reduces the assessed value of an eligible principal residence by a fixed amount of up to 35% of the average assessed value of residential property. Boston, Brookline, Waltham and Malden are among the communities that offer it; many others do not.
It must be applied for. The application is due by April 1 or three months after the actual tax bill is sent, whichever is later. After a purchase, the bill you receive may still reflect the seller’s status; ask the assessors how eligibility works in the year you buy.
Abatements
If you believe the assessment is too high, or the property is misclassified, apply in writing to the assessors on the state-approved form by the due date of the first installment of the actual tax bill. Keep paying while the application is pending; an unpaid bill can affect your rights on appeal. If the assessors deny the application, the next step is the Appellate Tax Board.
Personal exemptions and the homestead declaration
State law provides exemptions for certain seniors, veterans, blind persons and surviving spouses, each with its own eligibility rules. Applications are generally due by April 1 or three months after the actual bill is sent, whichever is later.
A homestead is different: it protects equity in your home from certain creditors and does not reduce tax. Every owner-occupied home has an automatic $125,000 protection; recording a declaration of homestead at the Registry of Deeds raises it to up to $1,000,000.
General information, current as of the date shown. Rates, exemption amounts and local options change each fiscal year; confirm them with your city or town assessors. The $11.00 rate in the example is illustrative.