FY25 Tax Rates Rise as Pace of New Growth Slows

With Boston’s revaluation process complete and tax bills for the second half of fiscal year 2025 received, property owners now have a clear picture of the taxes they owe, with tax rates rising for both residential and business properties. Driven by a strong increase in residential values, Boston’s assessed property value grew for the fourteenth straight year in FY25, yet business (CIP) property valuations fell by 1.7%, the first such decline since FY11. At the same time, new growth slowed from FY24, particularly driven by a drop in commercial new growth. The decline in commercial assessed values and the slowdown in commercial new growth are noteworthy and of concern for FY26 and beyond given Boston’s disproportionate reliance upon business property taxes to fund its budget.

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