Nantucket property tax bills for fiscal year 2026 are calculated at $3.12 per $1,000 of assessed value for residential property and $5.29 per $1,000 for commercial, industrial, and personal property.1Town of Nantucket. Tax Rate History Those rates are among the lowest in Massachusetts, but island assessments are high enough that the dollar amount on a bill can still run into the thousands. Year-round residents who own and occupy their home can knock $899,277 off the taxable value through the residential exemption, worth about $2,806 a year.
What You Will Actually Pay
Nantucket uses a split tax rate, so homes are taxed at one rate and business property at another. For FY2026:
- Residential: $3.12 per $1,000 of assessed value
- Commercial, industrial, and personal property (CIP): $5.29 per $1,000 of assessed value
A home assessed at $2,500,000 owes roughly $7,800 in base tax before any exemptions. A commercial building at the same value owes about $13,225.1Town of Nantucket. Tax Rate History
Personal property in Massachusetts means tangible movable items, not real estate. On Nantucket that most often shows up as furniture and furnishings in second homes and rentals, and as equipment and fixtures in businesses. Owners of furnished second homes file a declaration each year, and the contents are taxed at the $5.29 CIP rate.
On top of the base tax, every property owner pays a 3% Community Preservation Act surcharge, calculated as a percentage of the tax bill itself rather than the assessed value.2General Court of Massachusetts. Massachusetts General Laws Chapter 44B – Section 3 More on that below.
The Residential Exemption
The residential exemption is the biggest tax break available to full-time Nantucket homeowners. It reduces the assessed value your tax is calculated on rather than lowering the rate. For FY2026, the exemption is a flat $899,277, which cuts $2,805.74 off the tax bill of every qualifying owner, regardless of what the house is worth.1Town of Nantucket. Tax Rate History
The number comes from a Select Board vote each year setting the exemption at a percentage of the average residential assessed value islandwide. State law caps the figure at 35%; Nantucket currently uses 25%.3Town of Nantucket. FAQ
A worked example: a home assessed at $2,000,000 has $899,277 subtracted first, leaving $1,100,723 to tax. At $3.12 per $1,000, the bill is about $3,434 instead of $6,240.
Who Qualifies
You must own and occupy the property as your primary residence as of January 1 before the fiscal year begins. Proof of residency means submitting the first page of your federal and Massachusetts income tax returns showing the Nantucket address. The deadline to apply is three months from the date the tax bill is mailed.4Town of Nantucket. Residential Exemption
Seasonal homeowners, landlords renting full-time, and trust-owned properties without a qualifying occupant do not qualify. The assessors audit granted exemptions periodically, and if you move off-island or convert the property to seasonal use, the exemption goes away.
Exemptions for Seniors, Veterans, and Others
Massachusetts law provides several additional property tax exemptions, each with its own application and income rules. The filing deadline for FY2026 is April 1, 2026. The categories most used on Nantucket:
- Seniors 65 and older under Clause 41C, with age, residency, and income thresholds.
- Surviving spouses and homeowners 70 and older under Clause 17D, a smaller flat exemption.
- Veterans under Clauses 22 through 22F, with amounts tied to disability rating and service history.
- Legally blind residents under Clause 37, a flat annual exemption.
- Senior tax deferral under Clause 41A, which lets qualifying seniors postpone some or all of their taxes until the property is sold, with interest accruing on the deferred amount.
Nantucket also runs a senior tax work-off program that pays a property tax credit for volunteer hours with town departments. State law caps the credit at $1,500 per year. Each program requires its own application to the Board of Assessors, and income documentation is usually required.
The Community Preservation Act Surcharge
The 3% CPA surcharge funds open space preservation, historic restoration, affordable housing, and outdoor recreation on the island. Because it is calculated on the tax bill rather than the assessed value, the residential exemption reduces it indirectly: a smaller base tax produces a smaller surcharge.
State law allows towns to exempt the first $100,000 of each residential parcel’s value before the surcharge is applied, and to exempt low-income residents and moderate-income seniors whose household income falls under annual state-set thresholds.2General Court of Massachusetts. Massachusetts General Laws Chapter 44B – Section 3 If you think you qualify, the assessors’ office has the current income limits and forms.
Billing and Due Dates
Nantucket’s fiscal year runs July 1 through June 30, and taxes are billed quarterly. The first two quarters are preliminary bills based on the prior year’s tax; the final two reflect the new certified rate and reconcile any difference.5Town of Nantucket. Due Dates
- Q1: mailed July 1, due August 1
- Q2: mailed October 1, due November 1
- Q3: mailed January 1, due February 1
- Q4: mailed April 1, due May 1
Buying or selling mid-year? Check with the collector’s office about which quarters have been paid. Unpaid taxes generally stay with the property rather than the seller, so a buyer should confirm the account is current before closing.6Town of Nantucket. Buying or Selling Property Tax Checklist
What Happens If You Pay Late
Interest on unpaid tax runs at 14% a year from the due date. That rate is set by state law, and there is no meaningful grace period.
If a bill stays unpaid for more than 30 days, the town can send a formal demand for payment and add a demand fee to the balance.7Mass.gov. The Tax Lien Foreclosure Process If the taxes still are not paid, the town can proceed with a tax taking, placing a lien on the property that is recorded at the Registry of Deeds. From that point, the lien must be cleared before you can sell or refinance.
If the lien stays unredeemed long enough, the town can petition the Land Court to foreclose and ultimately take ownership. That process is slow and involves court proceedings, but it is real. Paying the delinquent taxes, interest, and fees at any point before final foreclosure clears the lien.
Challenging Your Assessment
If you think the assessed value on your property is too high, you can apply to the Board of Assessors for an abatement. The application must be filed within 30 days of the date the tax bill is mailed. Comparable sales, a recent appraisal, and evidence of conditions the assessors may not have accounted for all strengthen the case. An independent appraisal typically costs a few hundred dollars.
The assessors have three months to act. If they deny the application or do not respond within that window, you have three months from the denial, or deemed denial, to appeal to the Massachusetts Appellate Tax Board for a fresh state-level review. You still have to pay the tax bill while an abatement or appeal is pending; a dispute does not pause the payment obligation or stop interest from running on anything unpaid.