Local residential and commercial tax rates vary considerably by town.
With the 2008 recession, town equalized valuations took a hit. As a result, town tax rates increased to provide the steady Proposition 2 1/2 increase each year.
However, as some towns saw real estate increases post-2010, their tax rates again began to decline. Other towns were not so fortunate, and either continued spending expansion at rates beyond real estate growth, or did not see as much economic recovery. Those towns have tax rates which continued to increase after the economy stabilized.
Select a town and see how it’s tax rate has changed over 15 years.
Some towns (such as Arlington) set commercial and residential taxes at similar levels, while other towns (such as Lexington) have significantly higher commercial tax rates.
State law limits the extent to which commercial tax rates can exceed residential tax rates. The CIP “factor” has a limit of 1.5 or 1.75 depending on characteristics of the town’s tax base. This factor determines the extent to which the commercial tax rate can exceed the residential tax rate. Each town has an annual tax classification exercise where this rate is set.