How MA Property Taxes Work in 2025 (And How to Save!)
Property taxes are one of the biggest recurring expenses for homeowners in Massachusetts, but they can also be confusing. Whether you’re a current homeowner, a prospective buyer, or an investor, understanding how property taxes work can help you plan your budget better — and maybe even save some money.
What Are Property Taxes and What Do They Fund?
Property taxes are local taxes based on the assessed value of your property. These taxes fund essential community services like:
- Public schools
- Fire and police departments
- Road maintenance
- Other municipal services
How Are Property Taxes Calculated in Massachusetts?
Massachusetts calculates property taxes using a simple formula:
Assessed Value × Tax Rate = Annual Property Tax
Each city or town sets its own tax rate, charged per $1,000 of assessed property value.
Why Do Tax Rates Vary Between Towns?
Tax rates vary based on local budgets, services provided, and the amount of commercial property. Towns with more businesses often have lower residential tax rates since commercial properties contribute significantly to revenue.
Bottom line
Property tax rates vary due to local budgets, services, and commercial property levels. School funding is a major driver of taxes in Massachusetts. Take advantage of exemptions if you qualify, and always verify actual tax bills when buying a home to avoid surprises.