Boston property taxes are continuing to rise, from last year’s $11.88 to now $12.79 per $1,000 of assessed property value.

With assessed home values remaining relatively stable in many Boston neighborhoods and an approximate 8% increase in the tax rate, many Bostonians will face larger property tax bills during fiscal year 2011.

Relief is available, however, as the residential exemption will continue to be available to residents who maintain their Boston home as a primary residence. The fiscal year 2011 residential exemption subtracts $124,695 from a property’s assessed value, saving qualified homeowners approximately $1,595 on their tax bill.

For an example of how to calculate taxes for your condo, as well as a historical look at tax rates in Boston, visit our newly updated Boston property taxes article.

Property taxes in Boston continue to decrease, with a 2009 tax rate of $10.69 per $1,000 of assessed value, down from last year’s $10.97 per $1,000 of assessed value.  Assessed values appear to be staying steady, which equates to a decrease in an absolute sense for taxes paid by downtown Boston homeowners.  Additionally, residents who maintain their Boston home as their primary residence qualify for a residential exemption, lowering tax bills by as much as $1,500+ per year.  For an up to date example of how to calculate taxes for your condo, as well as a historical look at tax rates in Boston, visit our newly updated Boston property taxes article.

A client recently inquired about how Boston property taxes are calculated, which is an excellent question. The City of Boston has an Assessing Department that is responsible for accurately determining the value of all real and personal property located within the City for the purpose of taxation. The City takes the assessed value of a condo for instance, and applies a residential tax rate to it to determine the total gross tax bill.

The City of Boston publishes a residential tax rate table to assist in estimating your taxes based on your home’s assessed value. For 2009, for every $1,000 of assessed value in your condo, you are taxed$10.63.

• 2011 Boston Property Tax Rate: $12.79
• 2010 Boston Property Tax Rate: $11.88
• 2009 Boston Property Tax Rate: $10.63
• 2008 Boston Property Tax Rate: $10.97
• 2007 Boston Property Tax Rate: $10.99
• 2006 Boston Property Tax Rate: $11.12

Let’s look at a 2009 example. Say you had a condo that was assessed at a value of $515,000, what would your tax bill look like?

• First, determine how many thousands are in your assessed value: $515,000 / $1,000 = 515
• Second, multiply every thousand by the tax rate of $10.63. 515 * $10.63 = $5,474.45

On a Boston condo that is assessed at $515,000, your gross tax bill is estimated to be $5,474.45.

Bear in mind that the City of Boston offers what is called a Residential Tax Exemption for those who occupy their condo as a primary residence. The tax exemption will decrease your yearly tax bill on the order of $1,375.36. Be cognizant that you do need to apply for the exemption on a yearly basis, it will not automatically be given to you.

With the Residential Tax Exemption, what would the tax bill be on your $515,000 condo? $5,474.45 – $1,375.36 = $4,099.09.

Use this information as a rough guide when calculating Boston property taxes – for more information, please contact the City of Boston Assessing Department.