Table of Contents
Introduction
Most of us have felt the inflationary effects of higher gas and food prices. And now, as homeowners, it’s time to brace for yet another expense: higher property taxes. That’s right! Despite many Massachusetts towns reporting lower property tax rates in 2023 compared to 2022, property taxes are actually going up. So, what gives?
How Property Taxes are Calculated?
In Massachusetts, the town or city you live in determines how much each homeowner will pay in annual property tax. The amount of course is subject to a law called Proposition 2 1/2. Indeed, the formula for calculating property taxes is simply the town’s tax rate (expressed in dollars per $1,000 of assessed value) times the home’s assessed value. For example, if the assessed value of your home is $200,000 and your tax rate is 10, your total annual tax would be $2,000.
How Home Values are Assessed in Massachusetts?
Tax Rates and Tax Bills (MetroWest Towns; 5-Years)
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Concluding Remarks
In conclusion, each town or city needs to collect a certain amount of tax dollars to meet its annual budget. Towns can either raise the property tax rate, assessed value or both. So, don’t be fooled by a decrease in the town’s tax rate. Focus on the bottom line which is the tax bill – the total amount of tax you’re required to pay.
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About Team Coyle
Team Coyle, licensed real estate agents at Compass, has been successfully helping clients buy and sell real estate in the Greater Boston region since 2015.
Our mission is simple but important – to help our clients build wealth through home ownership. For more information about Team Coyle, click here.
Disclaimer: The views and opinions expressed in this commentary reflect Team Coyle’s beliefs and observations as of the date of publication. Team Coyle undertakes no responsibility to advise you of any changes in the views expressed herein. No representations are made as to the accuracy of such observations and assumptions and there can be no assurances that actual events will not differ materially from those assumed. The forward-looking statements in this paper are based on Team Coyle’s current expectations, estimates, forecasts and projections, and are not guarantees of future performance. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. These materials are provided for informational purposes only, and under no circumstances may any information contained herein be construed as investment advice. See also terms of use.