Boston Council Panel Advances FY2026 Split Tax Rate, Residential Exemption to Full Vote

BOSTON — December 8, 2025 — Boston's Ways and Means Committee advanced the city's annual tax classification order Monday, teeing up a Wednesday full-council vote that would preserve the 35% residential homeowner's exemption and the maximum 175% commercial-to-residential rate shift allowed under state law. Committee Chair Brian Worrell convened the December 8 hearing on Docket 2045, with Chief Financial Officer Ashley Groffenberger and Commissioner of Assessing Nicholas Aranello warning that failure to act before January tax bills print would collapse all rates to a single flat $15.40 per $1,000 of assessed value — up from the FY2025 residential rate of $11.58 and down sharply from the commercial rate of $25.96. Aranello projected the classified residential rate at $12.40 and the commercial rate at $26.96 for FY2026, and said the residential exemption would be worth an estimated $4,353.74 for a qualifying owner-occupant. Groffenberger confirmed this will be the eighth straight year residential property taxes for the average single-family home have grown by more than 5 percent, and that city departments have been asked to submit budgets 2 percent below current appropriations as economic conditions cool. The city's pending home rule petition — which would allow a shift up to 181.5% — has received no committee assignment at the Statehouse despite the council having passed it three times.