Property Tax in Cambridge, MA Explained

Property tax is the primary source of revenue for the City of Cambridge, funding public services such as the city’s school system, police and fire departments, and public works. These collections support the maintenance of roads and parks. This system of taxation distributes the costs of local government operations among property owners.

How Cambridge Property Tax is Calculated

A property tax bill in Cambridge is calculated by multiplying the property’s Assessed Value by the current Tax Rate. The City of Cambridge Assessor’s Office determines the assessed value of every property annually, reflecting its fair cash value as of January 1st. To do this, assessors analyze market data from property sales and consider a property’s characteristics like size, location, and condition.

After the total assessed value for the city is established, the Cambridge City Council sets the tax rate for the fiscal year. The rate is based on the city’s budget and is constrained by a state law known as Proposition 2 1/2, which limits how much a municipality’s total property tax levy can increase annually. For fiscal year 2025, the residential tax rate is $6.35 per $1,000 of assessed value.

Cambridge’s Residential Exemption provides tax relief to owner-occupants by reducing a property’s assessed value before the tax rate is applied. To be eligible, the property must be the owner’s primary residence as of January 1st. For fiscal year 2025, this exemption removes $499,263 from the assessed value, resulting in a tax savings of $3,170. This shifts a portion of the tax burden from owner-occupied residences to other property classes, like commercial and non-owner-occupied residential properties.

Property Tax Exemptions and Relief Programs

The City of Cambridge offers statutory exemptions to reduce property tax for qualifying residents, including seniors, surviving spouses, minors, veterans, and legally blind individuals. To be eligible for most of these exemptions, an applicant must meet specific criteria as of July 1st of the application year. General qualifications include owning and occupying a property in Massachusetts for five years and maintaining a domicile in the state for the preceding ten years.

Seniors may qualify for an exemption under Clause 41C if they meet age, ownership, residency, income, and asset limitations. Applicants must provide proof of age and documentation of their financial status, such as a recent state income tax return. Clause 17D offers similar relief to surviving spouses, minors of a deceased parent, and certain elderly individuals who can provide proof of their status and financial eligibility.

Veterans with a service-connected disability may qualify for exemptions under Massachusetts General Law Chapter 59. Clause 22 provides a $400 reduction for veterans with at least a 10% disability rating, while other clauses offer larger exemptions for more significant disabilities. To apply, a veteran must provide a copy of their VA disability letter and proof of residency. Legally blind individuals can apply for an exemption under Clause 37A with a current certificate from the Massachusetts Commission for the Blind. Application forms for all exemptions are available on the City of Cambridge Assessor’s Office website.

Challenging Your Property Assessment

Property owners in Cambridge can challenge an assessment they believe is inaccurate by filing an Application for Abatement. Reasons for filing include overvaluation, where the property is assessed for more than its fair market value, or disproportionate assessment. Taxes must be paid as assessed during this process to avoid interest and preserve appeal rights.

To file for an abatement, an owner must gather evidence to support their claim of the property’s true market value. This can include data on recent sales of comparable properties in the neighborhood. An owner can also use information about incorrect property characteristics on the city’s record card, such as square footage or the number of bathrooms.

For Fiscal Year 2025, the abatement application must be received by the Assessor’s Office on or before November 25, 2024, the due date of the first-half tax bill. After the city reviews the application and issues a decision, the property owner can appeal a denial. An appeal must be filed with the state’s Appellate Tax Board within three months of the decision date.

How to Pay Your Cambridge Property Tax

The City of Cambridge issues property tax bills semi-annually. For Fiscal Year 2025, the first-half payment is due November 25, 2024, and the second-half payment is due May 1, 2025. Property owners are responsible for paying on time, even if a bill is not received in the mail, and should contact the Finance Department if one is missing.

Payments can be made through the city’s online portal with a credit card or electronic check, though a convenience fee applies. Alternatively, a check or money order payable to the City of Cambridge can be mailed to the Finance Department at 795 Massachusetts Ave., Cambridge, MA 02139. When mailing payment, include the payment stub or write the parcel ID on the check.

A payment drop box for checks and money orders is accessible at all times behind City Hall; cash should not be placed in the drop box. Failure to pay by the due date results in interest charges on the outstanding amount. Continued delinquency can lead to demand fees and the placement of a tax lien on the property.