EASTHAMPTON — The City Council has opted to stick with a single tax rate classification for all properties, which the city has historically used, with the tax rate to be determined at a later date.
The City Council voted unanimously to maintain a single tax rate for residential and commercial properties at its annual tax classification hearing Nov. 19. Principal Assessor Martha Leamy explained that this was the best option for the city in the coming year.
The classification does not determine the tax rate for the city but allows the next steps to occur to calculate the rate for fiscal 2026.
Residential properties make up 88% of the tax base and commercial, industrial and personal properties sit at 12%, which has been the case since 2022 when residential properties sat at 87%.
The average single-family home value in Easthampton for fiscal year 2026 is $418,545, an increase of $26,930 compared to the prior year, with an average tax bill of $5,353.
This is an increase in home value compared to years past, with the average single-family tax bill in 2024 at $5,166, with the average home value assessed at $381,001 and a tax rate of $13.56 per thousand dollars in property value.
Leamy said that most single-family homes will see a 7% increase in their assessed value this year, unless someone has made home alterations that would affect their home value. She said the market has been “crazy” and thinks home prices are starting to settle down.
Under guidelines established by the state Department of Revenue and Massachusetts General Law, assessors must assess residential properties once every 10 years for a property. The value of properties is assessed to accurately reflect the market to ensure an equitable tax distribution.
While maintaining a single tax rate, Leamy and the Board of Assessors also recommended against adopting a residential or small commercial exemption. Residential exemptions reduce taxes paid by homeowners with moderately-valued properties, shifting more of the tax burden to owners of rental properties, vacation homes and higher-valued homes. In 2024, there were few municipalities that adopted these exemptions in the state — 18 adopted the residential and 14 adopted small commercial exemptions.
Leamy said for a smaller city like Easthampton where most residential homes are occupied by owners, a residential exemption would not be beneficial. Similarly, Easthampton has much fewer commercial properties compared to many communities in eastern Massachusetts that have a large business population, meaning a commercial exemption is not recommended either.
“The majority of residential properties in Easthampton are owner-occupied and shifting the burden to rental properties could potentially lead property owners to pass the increase on to tenants,” she said.
A small commercial exemption would tend to benefit the owners of the property.
“The small commercial exemption would be great, but it doesn’t benefit the business itself, only the property owner,” she said.
More information can be found on the Assessor’s website.