March 4, 2026 by Nes Correnti
Over the past few weeks, I’ve heard some understandably concerned comments about property taxes increasing 15%, 20%, or even more.
Before assuming something dramatic has happened, it’s worth taking a closer look at how property taxes actually work in Massachusetts. There are two common points of confusion, and both are easy to clear up.
1. The January Bill Isn’t the Whole Story
In Massachusetts, towns operate on a fiscal year that runs from July 1 to June 30 of the following calendar year.
- We generally receive two tax mailings each fiscal year:
- July mailing – covers the first two quarters (July–December). These bills are
based on the prior year’s tax rate and are considered preliminary. - January mailing – covers the second two quarters (January–June). These reflect the finalized tax rate and updated assessments for the fiscal year.
- July mailing – covers the first two quarters (July–December). These bills are
Because the July bills are estimates, the January bills adjust to the finalized numbers. That means the January bill can sometimes look noticeably higher than the earlier ones.
If you multiply that January number by four, it can make it appear that your annual taxes jumped far more than they actually did.
The only reliable way to know your true annual property tax is to:
- Add all four quarters together, or
- Multiply your assessed value by the published tax rate for the fiscal year.
A Quick Example:
Let’s say last year your total property tax was $9,500.
This year, your four quarterly bills add up to $10,000.
That’s a 5.3% increase.
But if you accidentally multiply just the January bill ($2,800) by four, you get $11,200
which looks like an 18% increase.
That’s how a simple shortcut can lead to a much bigger number than reality.
2. Your Bill Is Not the Same as the Town’s Revenue
This part surprises many people.
Under Proposition 2½, Massachusetts towns cannot increase their total tax levy by more than 2.5% plus new growth, unless voters approve an override.
That means the town as a whole is not suddenly collecting 15% or 20% more in revenue.
Think of it like a pie.
State law limits how much bigger the whole pie can get each year.
But the size of your slice can change.
Property taxes are based on assessed values. If your property’s value rises more than most others in town, your slice of the pie gets larger. If another property’s value rises less, or decreases, their slice gets smaller.
The pie itself didn’t grow dramatically. The slices shifted.
So it is entirely possible for an individual property tax bill to rise more than 2.5%, even though the town’s overall revenue increase remains within the legal limit.
Why This Matters
Taxes matter. They should.
But before concluding that the town is collecting dramatically more revenue, it’s important to make sure we’re calculating correctly and understanding how the system works.
If you’re unsure about your numbers, the Assessor’s Office is always willing to walk through your bill and explain how it was calculated.
Property taxes may never be anyone’s favorite topic, but understanding the math behind them can make the conversation a little easier.