Paying Cambridge MA Real Estate Taxes [FAQ]

buyers

Feb 11

If you’re new to owning property in Cambridge -- or even if you’re not -- it’s crucial to fully understand how to pay your residential property taxes.

What do I owe in property taxes?

There are a few things that determine how much you’ll pay in property taxes:

The assessed value of your home

The assessed value of your home is determined by the city of Cambridge. It takes into account the selling price of similar properties in the city, the value of improvements you may have made, rental income, and replacement cost. The assessed value can, and will, change over time.

You can view the assessed value of your Cambridge, Mass. home on the city website.

The Cambridge, Mass. tax rate

Like many municipalities, the Cambridge tax rate is determined by ‘millage rate.’ The millage rate is the tax assessed for each $1,000 of property value. Here are the Cambridge, Mass. tax rates for 2021:

Property Type	Millage Rate (cost per $1,000 assessed value)
Residential	$5.85
Commercial/Industrial	$11.85
Personal Property	$11.85

So, if the assessed value of your residential property is $500,000, your millage rate would be:

(500,000/1000)*5.85= $2,925 per year.

Do I qualify for a residential exemption?

If you own and live in your Cambridge home, you likely qualify for a property tax exemption, meaning you will receive a discount on your tax bill.

A residential exemption requires an application to prove that you are an owner-occupier. Here’s how to apply for the Cambridge, Mass. residential exemption:

Download and fill out this application
Attach a copy of your Massachusetts State Tax Form 1
If applicable, attach a copy of the trust instrument, including amendments and a copy of the schedule of beneficiaries
Mail the application and documents to:
795 Massachusetts Ave.
Cambridge, MA 02139

How do I pay my Cambridge property taxes?

Through your mortgage company

Many mortgage companies pay your taxes by incorporating tax payments into your monthly bill. Call your mortgage company to be sure that you don’t owe any additional taxes.