The Chatham, MA property tax rate for fiscal year 2026 is $3.67 per $1,000 of assessed value, up from $3.47 the previous year.1Town of Chatham. Certified Tax Rate A 3% Community Preservation Act surcharge sits on top of that, and year-round residents who claim the property as their principal residence can knock a significant amount off the bill through the town’s residential exemption.
What You’ll Pay and How to Estimate Your Bill
Chatham applies a single uniform rate to residential, commercial, and industrial parcels: $3.67 per $1,000 of assessed value for FY2026.1Town of Chatham. Certified Tax Rate To estimate your annual tax, divide your assessed value by 1,000 and multiply by 3.67. A home assessed at $900,000 would owe roughly $3,303 before any exemptions or the CPA surcharge.
The fiscal year runs July 1 through June 30, and assessed values are set as of January 1 each year. The Chatham Board of Assessors is required by state law to value every parcel at its “fair cash valuation,” meaning the price a willing buyer would pay a willing seller on the open market.2General Court of Massachusetts. Massachusetts Code Chapter 59 Section 38 – Fair Cash Valuation; Classification of Assessed Valuation; Taxable Valuation The state Department of Revenue has to certify that assessments reflect full and fair cash value before the rate is set.
The 3% Community Preservation Act Surcharge
Chatham adopted the Community Preservation Act in 2002 and imposes a 3% surcharge on real estate tax bills to fund open space, historic preservation, outdoor recreation, and community housing.3Town of Chatham. The Mainsheet September 20, 2024 On a $3,303 bill, the surcharge adds roughly $99. Low-income residents and seniors may qualify for an exemption from the surcharge; the Assessors’ Office can confirm current eligibility.
The Residential Exemption for Primary Residences
Because so much of Chatham’s housing belongs to seasonal owners, the residential exemption is the most consequential piece of tax relief available to full-time residents. State law allows towns to exempt up to 35% of the average assessed value of all residential parcels from the tax bill of any owner whose property is their principal residence for income tax purposes.4General Court of Massachusetts. Massachusetts Code Chapter 59 Section 5C
Chatham’s Select Board sets the actual percentage each year at the tax classification hearing. For FY2027 the board selected 20%, producing an exemption of $328,563 in assessed value.5Town of Chatham. Residential Exemption At the current rate, that works out to roughly $1,206 in tax savings for qualifying homeowners.
To qualify, you have to use the property as your principal residence for income tax purposes, and the burden of proof is on you. The assessor’s office will ask for documentation such as your federal and state tax returns.5Town of Chatham. Residential Exemption Applications are due on or before April 1 of the applicable tax year or three months after the actual tax bill is mailed, whichever is later.6General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 59 Miss that deadline and the board is required by law to deny the application regardless of your eligibility.
Other Exemptions and Senior Relief
Massachusetts law provides several additional exemptions under Chapter 59, Section 5. You can only claim one exemption per property, though the residential exemption stacks with others. All of the exemptions below follow the same filing deadline as the residential exemption.6General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 59
- Seniors age 65 or older who occupy the property as their primary residence may qualify under Clause 41C if annual income (excluding Social Security and certain government pensions) does not exceed $13,000 single or $15,000 married, and total assets excluding the home do not exceed $20,000.7General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 5
- Veterans with a service-connected disability rated at 10% or more by the VA, or who received the Purple Heart, qualify under Clause 22 for a set dollar reduction beyond the first $400 of tax.7General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 5
- Surviving spouses and minor children may qualify under Clause 17D for an exemption of up to $175 or $2,000 in valuation, whichever gives a larger reduction, if total assets other than the home do not exceed $40,000.7General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 5
Required documentation varies by exemption type. Veterans typically need military discharge papers; seniors need proof of income and assets.
Clause 41A Tax Deferral
Seniors age 65 or older with gross income of $109,000 or less in FY2026 can defer all or part of their property tax rather than paying it outright. The deferred amount accrues interest at 4.58% annually and becomes a lien on the property, with the total deferred balance (including interest) capped at 50% of the home’s assessed value. The lien is settled when the property is sold or transferred, which makes this a workable option for homeowners who are house-rich but cash-poor.
Senior Tax Work-Off Program
Chatham residents age 60 or older can earn a credit of up to $500 per household by working 62.5 hours for a town department. There are no income restrictions, and participants are matched to positions based on their skills. The credit counts as taxable income and is reported to the IRS on a 1099. Applications go through the Chatham Council on Aging.8Town of Chatham. Senior Tax Work-off Program Guidelines
Personal Property Tax for Second Homeowners
If you own a secondary residence in Chatham, you also owe personal property tax on the furnishings and tangible assets inside it, including furniture, appliances, and fixtures. This catches a lot of seasonal homeowners off guard. The town does not catalog your belongings. Instead, personal property is valued as a flat percentage of your building’s assessed value: 2% for single-family homes and 1% for condominiums.9Town of Chatham. Personal Property
That value is then multiplied by the same tax rate as real estate. A second home with a building value of $800,000 would carry an assessed personal property value of $16,000, producing a personal property bill of about $59 at the FY2026 rate. Chatham voters approved a $10,000 minimum value exemption in 2001, so if your calculated personal property value falls below that threshold you won’t receive a bill.9Town of Chatham. Personal Property Year-round residents who claim the property as their primary residence are not subject to personal property tax on household furnishings.
Supplemental Bills for New Construction
Complete a major renovation or build a new structure that increases your property’s assessed value by more than 50% (excluding land value), and receive the occupancy permit after January 1, and you’ll get a supplemental tax bill. The supplemental amount uses the assessed value of the improvement multiplied by the current tax rate, prorated for the days remaining in the fiscal year from the occupancy permit date.10General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 2D If the occupancy permit is issued between January 1 and June 30, you’ll also owe supplemental tax for the following fiscal year. If a mortgage company handles your taxes through escrow, it’s on you to notify them about the extra bill.
When Bills Arrive and What Happens If You’re Late
Chatham’s first installment is due November 1 (or 30 days after bills are mailed, whichever is later) and should cover at least half the total tax. The second installment is due in the spring. You can pay online through the town’s portal, in person at the Treasurer/Collector’s Office, or by mail. Online ACH payments are free; credit and debit card transactions carry a 2.95% service fee with a $1 minimum.11Town of Chatham. Treasurer / Collector The portal also handles e-billing and lets you view bills from prior fiscal years.
Late payments accrue interest at 14% per year from the original due date on any unpaid balance.12General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 57 That rate is set by state law and is not negotiable. Unpaid taxes can also lead to a tax lien, so staying current matters even if you need to pay in installments.
Appealing Your Assessment
If your assessed value looks too high, the first step is filing an abatement application with the Chatham Board of Assessors. You have to file on or before the due date of the first installment of the actual tax bill for the fiscal year in question.6General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 59 Use the state-approved form, and include evidence supporting a lower value: recent comparable sales, an independent appraisal, or documentation of property conditions the assessors may not have accounted for.
The assessors have three months to act. If they deny the application, or simply don’t respond within three months (which counts as a denial), you can appeal to the Massachusetts Appellate Tax Board by filing a petition within three months of that decision or deemed denial.13General Court of Massachusetts. Massachusetts General Laws Chapter 59 Section 65 Filing an abatement application doesn’t excuse you from paying the tax on time. You still owe the full amount while the appeal is pending, and you’ll receive a refund with interest if you win.14Mass.gov. Filing an Appeal with the Appellate Tax Board
Most successful abatement claims come down to comparable sales. If similar homes in your neighborhood sold for noticeably less than your assessed value, that’s your strongest argument. Pointing to high taxes or a tight budget won’t help; the assessors are only required to consider market value.