Boston Mayor Pushes Tax Proposal, Warns of 13% Resident Tax Hike Without Legislative Action

Boston Mayor Michelle Wu has renewed her public push to shift more of the city's tax burden onto commercial real estate to provide savings for residential homeowners. 

Wu is urging the Legislature to act on her tax-shift measure now, warning residents could face a 13% property tax hike in January, according to a letter Wu sent to business groups and fiscal watchdogs during the week of Dec. 1. That translates to the average single-family homeowner facing a tax increase of approximately $780 next year. In contrast, the average Class A office building will have a 4.4% decrease in its tax bill. 

Wu argues that rising residential values and declining commercial values — driven in part by post-pandemic remote work — make the shift necessary to protect homeowners and city services without jeopardizing the city's AAA bond rating.

According to a Boston.com report, the average single-family homeowner faced a 10.4% tax increase in 2024. Another increase would be the eighth straight year with a jump of more than 5%, Wu said. She described this situation as “unsustainable” and “avoidable.”

“The high cost of housing is the greatest threat to our regional and statewide competitiveness in today's economy, and years of significant residential property tax increases compound this threat,” she wrote in her letter sent to the leaders of the Boston Municipal Research Bureau, the Greater Boston Chamber of Commerce, the Massachusetts Taxpayers Foundation, and NAIOP Massachusetts.

Boston.com noted that Wu moved two versions of the plan through the City Council and the House of Representatives last year. Both attempts stalled and died in the Senate. In February, the City Council agreed to a new version of the proposal, but it has not made its way through the State House. 

Sen. Nick Collins of Boston has been the measure's most vocal opponent. According to a Commonwealth Beacon report, on Tuesday, Dec. 2, the mayor commented that the path to approval “was blocked by a single state senator” but did not name Collins publicly.