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Boston Council Sets 2026 Tax Rates, Lifting Average Homeowner Bills 13%

State inaction on the mayor’s tax-shift bill, combined with weaker commercial values, pushed the city to the legal cap on shifting costs off residents.

Overview

  • City councilors voted 12-0 to set the residential rate at $12.40 per $1,000 and the commercial rate at $26.96 under the maximum 175% shift allowed by state law.
  • The decision, paired with a 35% residential exemption that can save qualified owners up to $4,354.74, takes effect in January 2026.
  • Average taxes for single-family homeowners will rise about 13%, or roughly $780, driven by projected 6% declines in commercial assessments and a 2% increase in residential values.
  • Mayor Michelle Wu’s home-rule petition to allow a larger commercial share remains stalled in the Senate; her office estimates it would have limited the average increase to about $480.
  • Senate leaders are advancing alternative statewide relief proposals, including optional credits or rebates backed by Senators William Brownsberger and Nick Collins, as some councilors press for fiscal restraint and budget cuts.