Buying in Massachusetts: the full guide

Property tax: a town decision

There is no state property tax rate. Each of the 351 cities and towns sets its own rate per $1,000 of assessed value every fiscal year, so two similar houses a few kilometres apart can carry very different bills.

The right-hand column is our own arithmetic on the published rates, before any exemption, to make the towns comparable. In practice $800,000 buys very different homes in each of them. A state law known as Proposition 2 1/2 limits how fast a town's total levy can grow, which keeps bills more predictable than in many states. Some towns, Boston among them, give a residential exemption to owners who live in the property as their principal residence. A second-home owner does not get it.

How a purchase runs here

Massachusetts is an attorney state. The Supreme Judicial Court has held that a closing requires the substantive participation of an attorney for the lender, so the neutral title company that runs closings in much of the country plays a smaller role here. Buyers commonly have their own attorney review the purchase and sale agreement.

Several protections are written into state rules, and they apply whether or not you know to ask:

• Inspection. A seller cannot require you to waive a home inspection as a condition of accepting your offer.
• Septic systems. Where a home is not on mains sewer, a Title 5 inspection is required within two years before the sale, arranged by the seller unless you agree otherwise in writing, and you must receive the report.
• Lead paint. For homes built before 1978 the seller must give you a lead paint notification before you sign. If a child under six will live there, the owner has to deal with lead hazards within 90 days of taking title.
• Smoke and carbon monoxide detectors. The local fire department certifies them at sale.
• Condominiums. The owners' association must confirm in writing what common charges are unpaid on the unit, known as a 6(d) certificate, so you do not inherit someone else's arrears.

What you pay at purchase and afterwards

The state deeds excise is $2.28 per $500 of the price, which is $4.56 per $1,000, and $6.48 per $1,000 in Barnstable County. On Martha's Vineyard and Nantucket a land bank fee of 2% applies to most purchases. Add the usual closing costs, typically 2% to 5% of the price across the United States, and the lender's title insurance.

Running costs have a New England flavour. About one in four Massachusetts households heats with oil, which means a tank, deliveries and a winter bill that a buyer from a gas or district-heating country may not expect. Home insurance policies near the coast can carry a separate named-storm or wind deductible, usually 1% to 5% of the insured value, and flood damage is excluded from standard policies. If the house lies in a high-risk flood area, a lender backed by the federal agencies will require flood insurance.

How large a loan counts as standard

The price of a mortgage depends partly on whether it fits the conforming loan limit, the largest loan Fannie Mae and Freddie Mac can buy. For 2026 the one-unit limit is $962,550 in Suffolk, Middlesex and Norfolk counties, which cover Boston and its inner suburbs, $832,750 in Barnstable County, and $1,249,125 on Martha's Vineyard and Nantucket. Above the limit you need a jumbo loan, which each lender prices and underwrites by its own rules. At Massachusetts prices that line is one you may well cross, so ask early.

Letting the property

Short stays are taxed and, in places, restricted. Rentals of 31 days or less carry the state room occupancy excise of 5.7%, a local option of up to 6% (6.5% in Boston) and further local surcharges in some areas, and every operator has to register with the state Department of Revenue, including owners who live abroad. Boston allows short-term rentals only in homes the owner lives in. Check the town's rules before you count rental income in your plan.

State taxes an owner should know

Massachusetts taxes income at 5%, with a further 4% on income above $1,107,750 in 2026, and the rule applies to non-residents with Massachusetts income as well. The state has its own estate tax with a $2,000,000 threshold, and a homestead law that protects equity in a home against most creditors. Since November 2025, sales of $1,000,000 or more also come with a state filing and possible withholding for non-resident sellers. None of this is a reason to avoid the state. It is a reason to speak to a cross-border tax adviser before choosing whose name goes on the deed.

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