Nantucket Property Taxes

Nantucket's property tax rate for Fiscal Year 2024 is $3.78 per $1,000 of assessed value. This rate applies to all residential properties on the island. While this rate is among the lowest in Massachusetts, the high property values mean actual tax bills can be significant.

The tax rate is set annually by the Town of Nantucket based on budgetary needs and total assessed property values. Nantucket does not have a split tax rate, meaning commercial and residential properties are taxed at the same rate.

To calculate your estimated property tax, multiply your assessed value by 0.00378. For example, a home assessed at $3 million would pay approximately $11,340 annually in property taxes.

The Nantucket Board of Assessors determines property values for tax purposes. Assessments are based on fair market value as of January 1 of each year, with assessments reflecting what a property would sell for in an arm's length transaction between willing buyers and sellers.

Assessors consider recent comparable sales, property characteristics (size, condition, location, amenities), and market trends when determining values. Waterfront properties, historic homes, and those in prime locations like Downtown or Brant Point typically carry higher assessments.

Property owners receive assessment notices annually and have the right to appeal if they believe their assessment does not reflect fair market value. Appeals must be filed within the designated period, typically early in the calendar year.

Several exemptions can reduce property tax bills for qualifying Nantucket homeowners. The most common include the Residential Exemption for primary residents, exemptions for seniors over 65, veterans, surviving spouses, and persons with disabilities.

The Residential Exemption provides a reduction in assessed value for properties occupied as the owner's primary residence. To qualify, you must own and occupy the property as of January 1 and meet certain ownership requirements. This exemption can provide meaningful savings for year-round residents.

Seniors may qualify for additional exemptions based on age, income, and asset limits. Veterans with service-connected disabilities receive exemptions based on disability ratings. Applications for exemptions must be filed annually with the Assessor's office by the designated deadline.

Nantucket property taxes are billed quarterly, with payments due in August, November, February, and May. Bills are mailed approximately 30 days before each due date. Late payments incur interest charges at the statutory rate.

Property owners can pay taxes online through the town's payment portal, by mail, or in person at the Collector's Office. Many homeowners include property taxes in their mortgage escrow accounts, with lenders making payments on their behalf.

The town offers a tax deferral program for qualifying seniors, allowing eligible homeowners to defer property taxes until the property is sold or transferred. This program can help seniors on fixed incomes remain in their homes.

Compared to many Massachusetts communities, Nantucket's tax rate appears low. However, the comparison is misleading without considering property values. A $500,000 home in a community with a $15.00 tax rate would pay $7,500 annually, while a $2.5 million Nantucket home at $3.78 pays $9,450.

Compared to other island and coastal communities, Nantucket's effective tax burden is moderate. Martha's Vineyard towns have varying rates, with some higher and some lower than Nantucket. Cape Cod communities generally have higher rates but lower property values.

When budgeting for a Nantucket home, property taxes should be considered alongside mortgage payments, insurance, maintenance, and other carrying costs. The low rate provides some offset to the high property values, but annual tax bills remain a significant expense.

Second-home owners on Nantucket pay the same property tax rate as primary residents but typically do not qualify for the Residential Exemption. This means seasonal and vacation homeowners often pay higher effective taxes than year-round residents with comparable properties.

Massachusetts does not have a separate second-home tax, and Nantucket has not implemented additional fees targeting non-resident owners, though such measures have been discussed in other resort communities.

Second-home owners should also consider federal tax implications. The Tax Cuts and Jobs Act limited state and local tax (SALT) deductions to $10,000 annually, which affects many Nantucket property owners whose combined property and state income taxes exceed this limit.