Cambridge, MA Property Taxes 2026: Rates, Rising Bills and the Residential Exemption
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Cambridge property taxes at a glance
- FY26 residential tax rate: $6.67 per $1,000 of assessed value (July 1, 2025 – June 30, 2026).
- Two straight increases: up from $5.92 in FY24 and $6.35 in FY25, a 13% rise in two years.
- FY26 commercial tax rate: $14.07 per $1,000, up 22% from $11.52.
- Median single-family tax bill: $8,876 in FY26, up $821 from FY25 (with the residential exemption).
- Residential exemption: $510,208 of assessed value, saving owner-occupants $3,403 in FY26.
- Exemption deadline: April 1 of the fiscal year; you must own and live in the home on January 1.
- What’s next: the FY27 rate is set by the Cambridge City Council in fall 2026.
The residential property tax rate in Cambridge, Massachusetts has gone up two years running: from $5.92 per $1,000 of assessed value in FY24, to $6.35 in FY25, to $6.67 in FY26. That is a 13% climb in two years, after a long stretch in which the rate mostly fell.
Cambridge still has one of the lowest residential rates in Massachusetts, and the city’s residential exemption softens the blow for people who live in their homes. But the trend matters if you own here, and it matters even more if you are about to buy. The FY27 rate will be set this fall, so now is a good time to understand what is driving the increases and how to keep your own bill as low as possible.
Why are Cambridge property taxes going up?
Cambridge property taxes are rising because the city is raising more money from property taxes while the commercial tax base that carries most of the load has stopped growing.
| Fiscal year | Residential rate (per $1,000) | Commercial rate (per $1,000) | Property tax levy | Levy change |
|---|---|---|---|---|
| FY26 (Jul 2025–Jun 2026) | $6.67 | $14.07 | $678.9M | +8.0% |
| FY25 (Jul 2024–Jun 2025) | $6.35 | $11.52 | $628.4M | +9.2% |
| FY24 (Jul 2023–Jun 2024) | $5.92 | — | — | +8.3% |
Three things are behind the increases:
- A bigger levy. The levy is the total amount the city collects in property taxes. It grew 9.2% in FY25 and 8.0% in FY26, funding school spending, salary increases, higher debt service and capital projects. Roughly 65% of the city budget comes from property taxes.
- Falling commercial values. Total taxable value dropped about $3 billion (4%) for FY26, to $73.1 billion, as office and lab values softened with higher vacancies, hybrid work and slower lab demand. When values fall but the levy rises, rates have to go up.
- Slower new growth. Fewer new buildings are coming online to spread the cost, so existing owners absorb more of it.
Commercial owners still pay about 66% of the levy, and their rate jumped 22% this year. Residential owners pay about 34%, a share that held steady in both FY25 and FY26. That split is a deliberate policy choice the City Council votes on each fall.
The city also has $172.9 million in excess levy capacity under Proposition 2½, meaning it is legally allowed to tax more than it does. That cushion is one reason increases could continue if budgets keep growing faster than the tax base.
How much did Cambridge property tax bills go up for homeowners?
For a typical owner-occupied Cambridge home, the FY26 property tax bill rose by roughly $200 to $800, depending on property type. Values were close to flat, so most of that increase came from the higher rate.
| Property type | FY25 median value | FY25 median bill | FY26 median value | FY26 median bill | Change |
|---|---|---|---|---|---|
| Single-family | $1,767,700 | $8,055 | $1,841,000 | $8,876 | +$821 |
| Three-family | $1,857,550 | $8,625 | $1,918,700 | $9,395 | +$770 |
| Two-family | $1,594,700 | $6,956 | $1,648,750 | $7,594 | +$638 |
| Condominium | $767,300 | $1,702 | $798,900 | $1,926 | +$224 |
Median bills include the residential exemption. Source: City of Cambridge FY26 Property Tax Update.
A few things to keep in mind:
- Your bill depends on two numbers. Assessed value ÷ 1,000 × the tax rate (minus the residential exemption if you qualify). Either one rising pushes your bill up.
- Owners without the exemption feel it more. If you rent out your property or haven’t filed for the exemption, the full rate applies to the full value. The median single-family home would owe about $12,280 in FY26 without the exemption, versus $8,876 with it.
- Landlords may pass costs along. Investors in two- and three-families pay the full rate on non-exempt units, which can show up in rents.
- There is a 3% CPA surcharge on top. The Community Preservation Act surcharge funds open space, historic preservation and affordable housing. The first $100,000 of residential value is exempt from it.
- You can challenge your assessment. If you think your value is too high, file an abatement application by the first-half bill’s due date (December 8 for FY26).
What do rising property taxes mean for Cambridge homebuyers?
Anyone buying a home in Cambridge should budget for a higher property tax bill than the seller pays, at least for the first year or two. Here is why.
The seller’s bill may not be your bill. If the seller lives in the home, their bill reflects the residential exemption. You only qualify once you own and live in the home as your primary residence on January 1, the date each year’s assessment is based on. Buy in spring 2026, for example, and you won’t be eligible until the FY28 bill, which is based on ownership as of January 1, 2027.
The gap is large. On a home assessed at $1,000,000 at the FY26 rate:
| Scenario | Annual tax | Monthly |
|---|---|---|
| With residential exemption | $3,267 | $272 |
| Without residential exemption | $6,670 | $556 |
That roughly $280-a-month difference can affect how much house you qualify for, since lenders count taxes in your debt-to-income ratio. Ask your lender to underwrite with the full, unexempted tax.
Plan for escrow changes. If your mortgage includes an escrow account, your monthly payment will adjust as rates change. Two straight years of increases are a good reason to keep a cushion.
Assessments trail the market by a year. FY27 values are based on 2025 sales. If you paid well above the assessed value, expect your assessment to move toward your price over time.
Watch the bill timing. Cambridge bills twice a year, and the bill goes to whoever owned the property on January 1. Taxes are normally prorated at closing, but you are responsible for paying on time even if the bill is mailed to the prior owner. Late payments accrue 14% interest.
What is the Cambridge residential exemption?
The Cambridge residential exemption is a property tax break for owners who live in their home as their primary residence, and it is the single biggest way to lower your bill: it saved qualifying owners $3,403 in FY26.
How it works. Cambridge exempts a flat dollar amount of value from every owner-occupied home: 30% of the average residential value, or $510,208 for FY26. You pay tax only on the value above that. Because the amount is the same for everyone, it cuts a much bigger share of the bill on modest homes. The median condo’s FY26 bill drops from about $5,330 to $1,926, a reduction of roughly 64%.
It has grown each year. Tax savings rose from $2,919 in FY24 to $3,170 in FY25 to $3,403 in FY26. Counting the related CPA surcharge reduction, the total FY26 benefit was about $3,505.
Who qualifies.
- You owned the property and lived there as your primary residence on January 1 of the assessment year (January 1, 2025 for FY26 bills).
- Each person can claim it on only one property.
- Investment properties, second homes and units you don’t occupy don’t qualify. In a two- or three-family you live in, the exemption applies to your home.
How to apply.
- Check your current tax bill. If you see a line for “Residential Exemption,” you already have it.
- If not, get the application from the City of Cambridge Assessing Department (617-349-4343 or cambridgema.gov/assessor).
- File by April 1 of the fiscal year. For FY26 bills, the deadline was April 1, 2026.
- You don’t need to reapply each year once it’s granted.
Roughly two-thirds of Cambridge’s residential property is owner-occupied, yet it is still worth double-checking your bill. Missing the exemption is an expensive mistake.
What other property tax relief does Cambridge offer?
Beyond the residential exemption, Cambridge offers several programs for eligible owners:
- Senior exemption (Clause 41C): $1,000–$2,000 off for owners 65+ who meet income and asset limits.
- Senior tax deferral: owners 65+ who qualify can defer up to 100% of their annual taxes, repaid with 4% simple interest when the home is sold or transferred.
- Veteran, blind and hardship exemptions: fixed reductions for qualifying veterans, legally blind owners and surviving spouses, plus case-by-case hardship relief.
- CPA surcharge exemption: lower-income owners and low- to moderate-income seniors can be exempt from the CPA surcharge entirely.
- Senior Circuit Breaker credit: a refundable Massachusetts income tax credit for seniors whose property taxes are high relative to income.
Cambridge property tax FAQ
What is the property tax rate in Cambridge, MA?
For fiscal year 2026 (July 1, 2025 – June 30, 2026), the Cambridge residential property tax rate is $6.67 per $1,000 of assessed value. The commercial and industrial rate is $14.07 per $1,000.
How do I calculate my Cambridge property tax bill?
Subtract the residential exemption ($510,208 in FY26) from your assessed value if you qualify, divide by 1,000, and multiply by $6.67. A home assessed at $1,000,000 owes about $3,267 with the exemption and $6,670 without it, plus the 3% CPA surcharge.
Have Cambridge property taxes gone up?
Yes. The residential rate rose from $5.92 in FY24 to $6.35 in FY25 and $6.67 in FY26. The city’s total property tax levy grew 9.2% in FY25 and 8.0% in FY26.
How much does the Cambridge residential exemption save?
In FY26 the residential exemption saved qualifying owner-occupants $3,403 in property tax, plus about $102 on the CPA surcharge. It removes $510,208 of value from the taxable assessment.
When is the Cambridge residential exemption deadline?
Applications are due April 1 of the fiscal year, for example April 1, 2026 for FY26 bills. Once granted, you don’t need to reapply each year.
Do new homebuyers in Cambridge get the residential exemption?
Not right away. You must own and occupy the home as your primary residence on January 1 of the assessment year. Someone who buys in spring 2026 would first qualify on the FY28 bill.
When are Cambridge property tax bills due?
Cambridge bills property taxes twice a year. For FY26, the first half was due December 8, 2025 and the second half May 1, 2026. Late payments accrue 14% interest.
Are Cambridge property taxes high compared with the rest of Massachusetts?
Cambridge’s residential rate is among the lowest in Massachusetts because commercial property pays about 66% of the levy. High home values mean bills can still be substantial, especially without the residential exemption.
The bottom line
Cambridge’s residential rate is still low by Massachusetts standards, but it has risen two years in a row and the pressures behind it, a growing budget and a softer commercial tax base, haven’t gone away. Watch for the FY27 rate this fall.
- Homeowners: confirm the residential exemption is on your bill, review your assessment, and apply for any other exemption you qualify for.
- Buyers: budget with the full, unexempted tax for your first year or two, then file for the exemption as soon as you’re eligible.
Buying or selling in Cambridge? Let’s talk taxes before you sign
Property taxes are one of the most overlooked costs of owning in Cambridge, and they can change what a home really costs you each month. At Ed Greable & Company, we walk every client through the numbers: the current bill, what it will look like without the seller’s residential exemption, and when you can file for your own.
- Buyers: we’ll help you budget for the true carrying cost of any home you’re considering. Buy with us or browse Cambridge homes for sale.
- Sellers: rising taxes are part of what buyers weigh. Get a free home valuation to see where your home stands in today’s market.
- Questions? Call us at 617-905-9128 or send us a message.
This post is for general information, not tax or legal advice. Figures are from City of Cambridge publications for FY24–FY26; check with the Assessing Department for your specific situation.
About the author
Ed Greable leads Ed Greable & Company, a Cambridge real estate team with Keller Williams Boston Northwest based in Harvard Square. In 24 years of helping buyers and sellers in Cambridge, Somerville and surrounding communities, the team has closed more than 500 sales totaling over $400 million.