How is my real estate tax bill determined?

There are several factors that go into the determination of your real estate tax bill:

  1. The amount of spending in the operating departments.
  2. Plus the retiree pension and health insurance payments.
  3. Plus debt service.
  4. Less the amount of local revenue (other than real estate tax).
  5. Less the amount of state aid.

The result is the amount of the real estate tax levy for the Town. Under Proposition 2½, this levy is limited to:

  1. Last year's levy limit plus 2½% growth.
  2. Plus additions to the levy known "new growth" which are generated when a house is new or significantly renovated causing an increase in assessed value and, thereby, creating an increase in the tax base.
  3. Plus any Proposition 2½% overrides previously approved by the voters.

Once the year's levy is established, the tax rate is determined by dividing the levy by the total assessed value of the Town's taxpayers' real estate. Therefore the change in the tax rate is determined by both the change in the levy and the change in the total assessed valuation. The resulting tax for your property is the product of its assessed value and the tax rate. In any year, the change in your property's assessment may differ from that of the average property in town. If so, the % change in your tax bill will differ from that of the average property in town.

Show All Answers

1. How is my real estate tax bill determined?
2. What is Free Cash?
3. What is Proposition 2 1/2?
4. Where can I get more information?
5. What is the stabilization fund?