Mass. residents fork over more in real estate taxes than owners in all but four states

Massachusetts residents are pouring more money into real estate taxes than homeowners in all but four states, according to a report WalletHub released Wednesday.

The personal finance website ranked the states and the District of Columbia from lowest to highest based on real estate tax rates. Massachusetts’ high tax rate landed it way down on the list, at No. 34, and it was snug in the top 10 when it comes to how much homeowners are paying.

“It really goes to show that when it comes to real estate taxes, the rate matters … the more valuable your home is, the more you’re gonna have to pay out of pocket for it,” said Cassandra Happe, a WalletHub analyst.

Homeowners here face $5,584 in annual taxes on properties priced at the state’s median home value ($483,900).

Only homeowners in New Jersey, Connecticut, New Hampshire, and New York are paying more in annual real estate taxes, according to the report:

The report reached its rankings by dividing every state’s median real estate tax payment by the median home price.

Happe said the states around Massachusetts generally ranked at the bottom of WalletHub’s list due to their high tax rates:

Massachusetts: No. 34

Maine: No. 36

Rhode Island: No. 39

New York: No. 46

Vermont: No. 47

New Hampshire: No. 48

Connecticut: No. 49

“The neighboring states do have higher rates than what Massachusetts is seeing,” Happe said, “but the neighboring states also have lower median home values than what we’re seeing in Massachusetts.”

In January, Median single-family home prices reached $550,000 in Massachusetts: a 10.2% increase since January 2023, according to data from real estate analytics firm The Warren Group. Similarly, the median condominium price rose from $480,500 in January 2023 to $507,000 last month, according to the firm.

“I think that’s what’s really impacting the state more is that not only do they have, you know, a moderately high rate, but they’ve got such high home values,” Happe said.

Prospective home buyers should research the property tax rate in the towns and cities where they’re focusing their search, Happe said, and talk to realtors and homeowners about it.  

“You can look at numbers all day long,” Happe said, “but sometimes getting that real-life perspective from someone who’s in the area does a lot more to really shed light on what it’s like specifically where you’re looking to move.” 

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