How Real Estate Taxes work in Worcester Massachusetts

I have had a bunch of buyers ask me why they should plan on taxes going up after they buy a property.

As we know, Taxes always go up.

That is a bit too simplistic.

Basically your tax bill is as follows.

ASSESSED VALUE X TAX RATE

The tax rate is calculated annually, in Worcester it is $15.21 per $1000 for residential and $33.33 per $1000 for Commercial.  We will get into the dual tax rate at another time.

Let's say you are buying a 3 decker 

eg. 27 Wyman Street, Worcester

the current assessed value is $351k

multiply that times $15.21 and you get taxes of $5338/year

now let's say you purchase it for $550k

What will happen to the taxes?

Typically the city takes all the sales of 3 deckers in the city (or by section of the city) and puts them in a bucket and re assesses the properties.

Your taxes will go up as the assessed value increases.

Likely the City will boost your assessment to somewhere between the existing assessment and the purchase price.

Let's say the city now values the house at $425k then your taxes will go to $6464/year

that is an increase of just over $1k

But it is much better than if they city valued the property at $550k which would get you to $8365/year

Hopefully this helps.