For fiscal year 2026, the Cambridge, MA property tax rate is $6.67 per $1,000 of assessed value for residential properties and $14.07 per $1,000 for commercial and industrial properties.1City of Cambridge. FY26 Property Tax Information The median single-family home in the city carries an assessed value of about $1,841,000, which produces a tax bill of roughly $8,876 before any exemptions.2City of Cambridge. FY26 Property Tax Update
FY2026 Rates and the Year-Over-Year Change
The City Council set the FY2026 rates on October 20, 2025.2City of Cambridge. FY26 Property Tax Update The residential rate of $6.67 is up $0.32 from the prior year, about 5%. The commercial and industrial rate of $14.07 is up $2.55, about 22%.
The wide gap between the two rates is deliberate. Cambridge has a large commercial tax base anchored by biotech, pharmaceutical, and technology employers, and the Council shifts a greater share of the levy onto commercial properties each year. That is why Cambridge consistently posts one of the lowest residential rates in Massachusetts despite substantial city spending. The Council votes on new rates every fall after reviewing the budget and projected revenue.
How Your Bill Is Calculated
Your bill starts with the assessed value set by the Cambridge Board of Assessors. Massachusetts law requires that value to reflect “full and fair cash value,” meaning what the property would sell for in a normal transaction between a willing buyer and seller. Assessors use the prior calendar year’s sales of comparable properties and adjust for physical changes like renovations or additions.
Valuations update annually, so your assessed value moves with the local market. A rising market does not automatically raise your bill. The rate adjusts alongside values: if citywide assessed values jump 10% but total city spending stays flat, the rate drops to offset. What actually moves your bill is how your property’s value changes relative to everyone else’s.
Assessed value also tends to lag the current market. The sales data behind this year’s values is already several months old by the time the rate is set, so a sharp market move will not show up in your assessment until the following fiscal year.
Community Preservation Act Surcharge
Cambridge adds a 3% Community Preservation Act surcharge on top of your regular tax bill.2City of Cambridge. FY26 Property Tax Update The surcharge funds open space, affordable housing, and historic preservation. It is calculated after exemptions are applied, so claiming the residential exemption also lowers the surcharge.
Proposition 2½
Massachusetts caps how fast a city’s total property tax levy can grow. Under Proposition 2½, the total amount Cambridge collects can rise by no more than 2.5% a year, plus revenue from new construction. The city can exceed that ceiling only with voter approval of an override.
The Residential Exemption
If you own and occupy your Cambridge home as your principal residence, the residential exemption is the biggest single reduction available. For FY2026, it removes $510,208 from your assessed value before the rate is applied, saving qualifying owners roughly $3,403. State law allows cities to exempt up to 35% of the average assessed value of all residential parcels.3General Court of Massachusetts. Massachusetts General Laws Chapter 59 – Section 5C
You must own and occupy the property as of January 1 before the fiscal year begins, and the application has to be filed with the Board of Assessors no later than April 1 of the fiscal year.4City of Cambridge. Apply for A Residential Exemption Have proof of primary residency ready: a Massachusetts driver’s license, vehicle registration, or state tax return showing the Cambridge address.
One point worth understanding: the exemption shifts the tax burden rather than cutting it citywide. Rental buildings, second homes, and very high-value residences pay proportionally more to make up for it. If your property is valued below the citywide average, the exemption helps you. If it is well above average, the math can work against you compared with a flat rate.
Exemptions for Seniors and Veterans
Homeowners age 65 and older can claim a $1,000 exemption under Clause 41C if they meet strict income and asset tests. For FY2026, a single senior’s income cannot exceed $20,000 and assets (excluding the home) cannot exceed $40,000; married seniors face limits of $30,000 and $55,000.5Division of Local Services. Property Tax Exemption Clauses Adopted Because the home itself is excluded from the asset calculation, many longtime Cambridge owners whose houses are now worth over a million dollars still qualify.
Veterans with service-connected disabilities, Purple Heart recipients, Gold Star parents, and certain surviving spouses qualify for exemptions ranging from $400 to a full exemption, depending on the clause. Clause 22 ($400) covers veterans with a 10% or greater disability rating; Clause 22E ($1,000) covers veterans rated 100% disabled by the VA; and Clause 22D provides a total exemption for unremarried surviving spouses of service members killed in a combat zone or missing in action with a presumptive finding of death. Higher-tier awards fall between those points.6City of Cambridge. Veterans Exemptions Applicants must be Massachusetts residents occupying the property as their primary home on July 1 of the application year.
When Bills Are Due
Cambridge bills property tax semi-annually, not quarterly. For FY2026, the first-half bill was mailed November 7, 2025, with payment due December 8, 2025. The second-half bill is expected around April 1, 2026, with payment due May 1, 2026.2City of Cambridge. FY26 Property Tax Update
Miss a deadline and interest accrues at 14% per year from the original due date.7General Court of Massachusetts. Massachusetts General Laws Chapter 59 – Section 57 On a $4,300 half-year installment, a two-month delay runs about $100 in interest. Under state law, you owe on time even if the bill never reached your mailbox. If a bill does not arrive, call the Finance Department at 617-349-4220 rather than wait.
You can pay online, by mail, or in person at City Hall. Mailed payments must arrive by the due date; a postmark will not protect you. If a mortgage escrow handles your taxes, confirm with the lender that payments follow Cambridge’s semi-annual schedule, because an escrow shortfall eventually comes back to you.
If You Think Your Assessment Is Too High
You can challenge the assessed value by filing an abatement application with the Board of Assessors. With semi-annual billing, the deadline is generally 30 days from the mailing date of the actual tax bill.8Mass.gov. Real Estate Tax Appeals: A Helpful Guide for Taxpayers and Assessors Miss that window and you lose the right to challenge the assessment for the entire fiscal year.
The assessors have three months to act. They can grant a full or partial abatement, deny the application, or let the clock expire, which counts as a denial. From there you have three months to appeal to the Massachusetts Appellate Tax Board.8Mass.gov. Real Estate Tax Appeals: A Helpful Guide for Taxpayers and Assessors
Keep paying your tax bill on time while the appeal is pending. If a payment lapses or interest accrues, the Appellate Tax Board loses jurisdiction and the appeal dies on its own, no matter how strong the underlying case. Pay first, argue second. Build your case with recent comparable sales and documented property conditions the assessor may have missed.