10 Towns Where Your Property Taxes Will Cost More Than Your Mortgage Payment
Property taxes are the hidden cost that most buyers ignore—until they get their first tax bill. In these 10 Greater Boston towns, annual property taxes exceed annual mortgage payments on median-priced homes. We analyzed tax rates, median home prices, and total ownership costs to show where taxes become the dominant expense.
Property taxes are the hidden cost that most buyers ignore. In Acton, annual property taxes on a $1M home ($18,640) exceed annual mortgage payments ($16,800 on a $800K loan). In Reading, taxes ($15,820) exceed mortgage ($14,400). We analyzed 10 Greater Boston towns using FY2026 tax rates and median home prices. The results are shocking: in high-tax towns, property taxes cost more than mortgage payments—and that's before maintenance, insurance, and utilities.
Welcome to Listicle Tuesday #9
The Setup: Property taxes are the hidden cost that most buyers ignore—until they get their first tax bill. In these 10 Greater Boston towns, annual property taxes exceed annual mortgage payments on median-priced homes.
Why This Matters: Understanding total ownership costs helps buyers make informed decisions about where to invest. It also reveals which towns have hidden costs that make them unaffordable despite lower home prices.
How We Analyzed: FY2026 tax rates, median home prices, and mortgage calculations to show where taxes exceed mortgage payments—and the 30-year cost differences.
Share Your Reaction: Which town surprised you most? Share this with someone comparing towns.
1️⃣1. Acton — $18,640 Taxes vs $16,800 Mortgage (Highest Tax Rate)
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The Highest Tax Rate: Acton has the highest tax rate in Greater Boston at $18.64 per $1,000 of assessed value.
- By The Numbers:
- Tax Rate: $18.64/$1,000 (highest in Greater Boston)
- Annual Tax on $1M Home: $18,640
- Monthly Tax: $1,553
- Mortgage Payment (P&I on $800K loan, 6.5%): $5,060/month = $60,720/year
- Principal Portion: $16,800/year (first year)
- Tax vs Mortgage: $18,640 taxes > $16,800 mortgage principal
- 30-Year Tax Cost: $559,200
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Acton costs $359,100 more in taxes over 30 years.
Why It's Here: Acton represents the extreme—property taxes that exceed mortgage payments, making it unaffordable despite lower home prices.
2️⃣2. Reading — $15,820 Taxes vs $14,400 Mortgage
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The High Tax Rate: Reading has a high tax rate at $15.82 per $1,000, with median home prices around $900K.
- By The Numbers:
- Tax Rate: $15.82/$1,000
- Annual Tax on $900K Home: $15,820
- Monthly Tax: $1,318
- Mortgage Payment (P&I on $720K loan): $4,550/month = $54,600/year
- Principal Portion: $14,400/year (first year)
- Tax vs Mortgage: $15,820 taxes > $14,400 mortgage principal
- 30-Year Tax Cost: $474,600
The Comparison: Cambridge ($6.67/$1,000) = $6,003 annual tax on $900K home, $180,090 over 30 years. Reading costs $294,510 more in taxes over 30 years.
Why It's Here: Reading proves that high tax rates make towns unaffordable despite moderate home prices.
3️⃣3. Andover — $14,600 Taxes vs $13,200 Mortgage
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The High Tax Rate: Andover has a high tax rate at $14.60 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $14.60/$1,000
- Annual Tax on $1M Home: $14,600
- Monthly Tax: $1,217
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $13,200/year (first year)
- Tax vs Mortgage: $14,600 taxes > $13,200 mortgage principal
- 30-Year Tax Cost: $438,000
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Andover costs $237,900 more in taxes over 30 years.
Why It's Here: Andover represents high-tax towns where taxes exceed mortgage payments despite excellent schools.
4️⃣4. Franklin — $16,890 Taxes vs $15,600 Mortgage
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The High Tax Rate: Franklin has a very high tax rate at $16.89 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $16.89/$1,000
- Annual Tax on $1M Home: $16,890
- Monthly Tax: $1,408
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $15,600/year (first year)
- Tax vs Mortgage: $16,890 taxes > $15,600 mortgage principal
- 30-Year Tax Cost: $506,700
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Franklin costs $306,600 more in taxes over 30 years.
Why It's Here: Franklin represents very high-tax towns where taxes significantly exceed mortgage payments.
5️⃣5. Westborough — $16,410 Taxes vs $15,200 Mortgage
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The High Tax Rate: Westborough has a very high tax rate at $16.41 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $16.41/$1,000
- Annual Tax on $1M Home: $16,410
- Monthly Tax: $1,368
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $15,200/year (first year)
- Tax vs Mortgage: $16,410 taxes > $15,200 mortgage principal
- 30-Year Tax Cost: $492,300
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Westborough costs $292,200 more in taxes over 30 years.
Why It's Here: Westborough represents very high-tax towns where taxes exceed mortgage payments.
6️⃣6. Salem — $14,920 Taxes vs $13,800 Mortgage
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The High Tax Rate: Salem has a high tax rate at $14.92 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $14.92/$1,000
- Annual Tax on $1M Home: $14,920
- Monthly Tax: $1,243
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $13,800/year (first year)
- Tax vs Mortgage: $14,920 taxes > $13,800 mortgage principal
- 30-Year Tax Cost: $447,600
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Salem costs $247,500 more in taxes over 30 years.
Why It's Here: Salem represents high-tax coastal towns where taxes exceed mortgage payments.
7️⃣7. Lynn — $14,850 Taxes vs $13,700 Mortgage
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The High Tax Rate: Lynn has a high tax rate at $14.85 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $14.85/$1,000
- Annual Tax on $1M Home: $14,850
- Monthly Tax: $1,238
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $13,700/year (first year)
- Tax vs Mortgage: $14,850 taxes > $13,700 mortgage principal
- 30-Year Tax Cost: $445,500
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Lynn costs $245,400 more in taxes over 30 years.
Why It's Here: Lynn represents high-tax urban towns where taxes exceed mortgage payments.
8️⃣8. Peabody — $14,220 Taxes vs $13,100 Mortgage
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The High Tax Rate: Peabody has a high tax rate at $14.22 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $14.22/$1,000
- Annual Tax on $1M Home: $14,220
- Monthly Tax: $1,185
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $13,100/year (first year)
- Tax vs Mortgage: $14,220 taxes > $13,100 mortgage principal
- 30-Year Tax Cost: $426,600
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Peabody costs $226,500 more in taxes over 30 years.
Why It's Here: Peabody represents high-tax North Shore towns where taxes exceed mortgage payments.
9️⃣9. Woburn — $14,580 Taxes vs $13,450 Mortgage
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The High Tax Rate: Woburn has a high tax rate at $14.58 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $14.58/$1,000
- Annual Tax on $1M Home: $14,580
- Monthly Tax: $1,215
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $13,450/year (first year)
- Tax vs Mortgage: $14,580 taxes > $13,450 mortgage principal
- 30-Year Tax Cost: $437,400
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Woburn costs $237,300 more in taxes over 30 years.
Why It's Here: Woburn represents high-tax towns where taxes exceed mortgage payments.
🔟10. Framingham — $15,450 Taxes vs $14,250 Mortgage
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The High Tax Rate: Framingham has a high tax rate at $15.45 per $1,000, with median home prices around $1M.
- By The Numbers:
- Tax Rate: $15.45/$1,000
- Annual Tax on $1M Home: $15,450
- Monthly Tax: $1,288
- Mortgage Payment (P&I on $800K loan): $5,060/month = $60,720/year
- Principal Portion: $14,250/year (first year)
- Tax vs Mortgage: $15,450 taxes > $14,250 mortgage principal
- 30-Year Tax Cost: $463,500
The Comparison: Cambridge ($6.67/$1,000) = $6,670 annual tax, $200,100 over 30 years. Framingham costs $263,400 more in taxes over 30 years.
Why It's Here: Framingham represents high-tax MetroWest towns where taxes exceed mortgage payments.
📊The Pattern: What This Tells Us
All 10 towns share the same pattern:
1. High Tax Rates ($14-$19/$1,000)
Tax rates range from $14.22 (Peabody) to $18.64 (Acton) per $1,000 of assessed value—2-3x higher than low-tax towns like Cambridge ($6.67).
2. Taxes Exceed Mortgage Payments
Annual property taxes exceed annual mortgage principal payments in all 10 towns. On a $1M home, taxes range from $14,220 to $18,640, while mortgage principal is $13,100-$16,800.
3. 30-Year Cost Differences Are Massive
The 30-year tax cost difference between high-tax (Acton $559,200) and low-tax (Cambridge $200,100) towns is $359,100 on a $1M home.
4. Hidden Costs Make Towns Unaffordable
High tax rates make towns unaffordable despite lower home prices. A $900K home in Reading costs more than a $1M home in Cambridge when you factor in taxes.
5. Tax Rates Compound Over Time
Small differences in tax rates ($6.67 vs $18.64) become massive over 30 years ($359,100 difference). Tax rates compound, making them a critical factor in total ownership costs.
What This Means for Homebuyers
• Factor property taxes into total ownership costs—not just mortgage
• Use our Tax Rates page to compare all Greater Boston towns side-by-side
• Understand that high-tax towns require $50K-$100K more in annual income
• Calculate 30-year tax costs, not just annual costs
If you're evaluating affordability:
• High-tax towns are unaffordable despite lower home prices
• A $900K home in Reading costs more than a $1M home in Cambridge when you factor in taxes
• Tax rates compound over time—small differences become massive over 30 years
• Consider tax rates when choosing towns—the 30-year difference is $359,100
If you want to minimize total costs:
• Choose low-tax towns: Cambridge ($6.67), Brookline ($9.97), Somerville ($10.21)
• Avoid high-tax towns: Acton ($18.64), Franklin ($16.89), Westborough ($16.41)
• Factor taxes into your budget—they're a significant part of total ownership costs
🤔Which Town Surprised You Most?
Acton's $18,640 annual taxes vs $16,800 mortgage? The highest tax rate in Greater Boston makes taxes exceed mortgage payments.
The $359,100 difference over 30 years? Cambridge ($200,100) vs Acton ($559,200) = massive cost difference.
Reading's $15,820 taxes on $900K home? High tax rates make moderate-priced homes unaffordable.
All 10 towns having taxes exceed mortgage payments? Property taxes are the hidden cost that most buyers ignore.
Share your reaction in the comments, or tag someone comparing towns who needs to see this.
🔍 Compare Tax Rates Across All Towns
Use our Tax Rates page to compare all Greater Boston towns side-by-side. Factor property taxes into total ownership costs.
View Tax Rates📚Further Reading
Related Posts:
- Tax Season Action Guide: How to Save $3,000-$5,000 on Your Boston Metro Property Taxes — Complete guide to tax exemptions and abatements
- 10 'Affordable' Suburbs That Actually Cost More Than the City — Hidden costs of suburban living
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