Massachusetts Property Tax Rates

1. Assessing Your Home’s Value

Each city or town has an assessor who estimates what your property was worth on a set date — usually January 1 of the previous year. They look at recent home sales, neighborhood trends, improvements you’ve made, and even your property’s condition. This assessed value becomes the foundation for your tax bill.

2. Setting the Tax Levy (a.k.a. “How Much the Town Needs”)

Every year, your town or city figures out how much revenue it needs to operate — schools, road repairs, libraries, public safety, you name it. After subtracting state aid and other income sources, the remainder becomes the tax levy, which must be raised through property taxes.

3. Calculating the Tax Rate

The tax rate is determined by dividing that total levy by the community’s total assessed property value (the “tax base”). The number you see — for example, $12.00 — represents how much you pay per $1,000 of your home’s assessed value.

So if your home is assessed at $500,000 and your town’s tax rate is $12, your bill would be roughly $6,000.

4. Different Classes of Property

Massachusetts law allows towns to apply different rates to residential, commercial, industrial, and open-space properties. Some towns (like Lexington or Burlington) have a split rate, which means businesses pay more per thousand than homeowners. Others (like Belmont or Westford) use a single, uniform rate for everyone.

5. Proposition 2½ and Overrides

You’ve probably heard the phrase “Prop 2½.” It limits how much a community’s total tax levy can increase each year — generally 2.5%, plus the value of any new growth — unless voters approve an override or special debt exclusion. These votes often fund major school renovations, fire stations, or other big projects.

6. Exemptions and Tax Credits

Massachusetts offers several programs to reduce the tax burden for qualifying residents — including seniors, veterans, and homeowners with disabilities. There’s also the state’s “Circuit Breaker” tax credit for eligible older residents whose property taxes or rent exceed a certain portion of their income.

Why Property Tax Rates Vary So Much

Every town makes independent decisions about its budget, spending priorities, and classification system. For example:

• A town with strong commercial growth can shift more of the burden away from homeowners.
  
  

• Towns with higher average home values often have lower tax rates, because they can raise the same revenue from a larger base.
  
  

• Smaller communities without much business tax revenue may need to charge a higher rate to fund essential services.
  
  

That’s why a homeowner in Woburn pays a very different rate than someone in Acton or Lexington — even if their homes are worth about the same.

FY 2025 Property Tax Rates — North of Boston Snapshot

Here’s a look at some FY 2025 residential property tax rates for towns and cities across Middlesex and Essex Counties, focusing on the North-of-Boston area. Rates are listed per $1,000 of assessed value.

(Rates shown are certified by the Massachusetts Division of Local Services as of FY 2025.)

Making Sense of the Numbers

A higher tax rate doesn’t always mean you’re paying more overall — it depends on your home’s assessed value. For example, a $500,000 home in Acton (rate = 17.15) would owe about $8,575 annually, while a $900,000 home in Lexington (rate = 12.23) would owe about $11,007.

It’s all about the relationship between assessed value and rate — and how your community balances its budget.

What Homeowners Can Do

• Check your assessment: Visit your town’s assessor’s website to confirm that your property details (square footage, lot size, condition, etc.) are accurate.
  
  

• Know your local rate: Each city or town posts its certified rates every fiscal year, often under “Tax Rates” or “Assessor’s Office.”
  
  

• Review available exemptions: If you’re a senior, veteran, or qualify for income-based assistance, apply early — many towns have deadlines in the fall.
  
  

• Stay involved locally: Overrides and budget votes directly influence property tax increases. Attend town meetings, or at least follow your local finance committee’s updates.
  
  

Final Thoughts

Property taxes may not be the most exciting topic, but they’re one of the most important pieces of homeownership in Massachusetts. Understanding how they work — and why they differ from town to town — helps you plan, budget, and make informed decisions when buying or selling a home.

If you’d like a personalized breakdown of property tax trends in your specific community north of Boston — from Woburn to Reading, Lexington, or beyond — I’m happy to help.

👉 Reach out anytime for local insights, tax comparisons, or a full market snapshot.