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
$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:
Example: 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 reassesses 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 the city valued the property at $550k, which would get you to $8365/year.
Hopefully, this helps.
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