NORTHAMPTON — The City Council unanimously set a new tax rate for the 2023 fiscal year this week. Most homeowners in the city can expect an increase in property taxes due to surging housing prices, even though the tax rate is actually going down.
That new rate is $15.84 per $1,000 of assessed property value, a decrease from $17.89 the previous year and the lowest rate since 2015.
But rising housing prices have caused the value of the average single-family home in Northampton to swell to $424,527, a 25% increase from the year before. The rising house prices offset most of the lower tax rate, meaning that the taxes paid for the average single-family home would increase by around $400, or 6%, for the fiscal year, according to Marc Dautreuil, the principal assessor for Northampton.
As is traditionally the case, the new tax classification is single rate, meaning that residents and commercial properties pay the same amount. The single tax rate is the norm for areas across the state that do not have large commercial or industrial areas.
The council passed the new tax classification on Tuesday during a special council meeting held virtually over Zoom. The new rate will take effect on the first of January.
Alexander MacDougall can be reached at amacdougall@gazettenet.com.
