The state Division of Local Services (DLS) maintains a wealth of economic data on Massachusetts cities and towns. In particular, the DLS tracks the average value of a single-family home in each community, and the average annual property tax levied on these homes, with data going back to 1988.

A community’s property tax levy contributes to the services it provides, such as schools, libraries, roads, and public safety. It can also have a significant impact on a community’s cost of living. Local real estate tax directly affects affordability for both home and business property owners and flows to renters who see their landlords’ taxes reflected in their rents.

A review of the average Amherst tax bill over the past 35 years shows a steep rise, outpacing both inflation and the corresponding tax increase of neighboring Hadley. The graph above exhibits the trend.

Between 1988 and 2023 the average Amherst single-family home value climbed by 349% from $128,095 to $446,953. Over the same period the annual tax bill on the average Amherst home rose 585%, from $1,537 to $8,984. The 2023 bill is based on a tax rate of $20.10 per $1000 which ranks as the fifth highest rate in the state.

Residents of Amherst’s neighbor to the west, Hadley, also saw a sharp rise in average home values over the past 35 years, climbing from $93,696 in 1988 to $418,761 in 2023. Average Hadley property tax bills grew from $942 to $4,833 over the same period.

Today the average Amherst homeowner pays $4,151 more in annual property tax than the average Hadley homeowner, a difference of 86%. Despite this differential, over the past three years Hadley has managed to cut the ribbon on a new $8 million library, a $5 million senior center and a $3.7 million fire station, its public schools are on a par with Amherst’s, according to rating site niche.com, and it is home to an impressive array of farms and open spaces. Hadley, like Amherst, hosts a portion of the University of Massachusetts campus.

The average Amherst tax bill has jumped by more than $360 in a year on six occasions: $447 in 1990, $452 in 1993, $553 in 2005, $422 in 2011; $414 in 2022 and $376 in 2023. Hadley has exceeded an increase of $360 only once — $365 in 2023.

The Amherst Town Council is promoting two multi-million-dollar capital projects for which funding will need to be lined up in the coming year — a renovation-expansion of the Jones Library currently budgeted at $46.1 million with a town share of $15.8 million plus financing costs estimated at $9 million, and a $98 million replacement of the Fort River Elementary School with the town’s share being roughly $55 million plus financing costs. The Town Council has authorized the library project to be funded with tax dollars already collected and is expected to seek voter approval for residents to finance the elementary school project with a debt-exclusion property tax override this May.

One last statistic maintained by the Massachusetts DLS is worth noting. The average tax bill as a percentage of income represents a measure of a community’s ability to afford its tax burden. Amherst’s average tax bill as a percent of income stands at 46.2% — second highest in the state behind Tisbury on Martha’s Vineyard.

Jeff Lee lives in Amherst.]]>