Boston is interesting in that it ranks among the highest in home prices among major U.S. cities, yet its effective property tax rate is one of the lowest in the country.

The average effective tax rate in Massachusetts is known to be around 1.1%, but thanks to the Residential Exemption program for owner-occupants, the actual effective tax rate in Boston often drops to between 0.5% and 0.7%.

The median home price in Boston is around $770,000 to $800,000 as of 2025, and for investment properties that do not qualify for the exemption, annual property taxes can rise to between $8,000 and $9,000. In contrast, when owner-occupants apply for the exemption, it is common for their tax liability to decrease to between $4,000 and $5,000.

Home insurance premiums are often set between $1,500 and $2,200 annually, reflecting the risks of winter freeze damage and nor'easter winds typical in New England. Properties close to the coast may also require separate flood insurance, adding to the costs.

Maintenance costs should be estimated at around 1.5% to 2% of the home price, as many homes in Boston are nearly 100 years old. For an $800,000 home, this could mean an annual budget of $12,000 to $16,000, making it important to set aside funds for aging plumbing and heating systems.

When factoring in the additional HOA fees (ranging from $400 to $800 per month) for condos, it is not uncommon for total annual housing-related expenses for condo owners in Boston to exceed $20,000.

Compared to nearby cities like Cambridge and Newton, Boston's nominal tax rate is similar or slightly lower, but the high home prices create a greater burden in absolute tax amounts.

If you are a Korean household planning to reside in Boston, it is advisable to apply for the Residential Exemption immediately after closing to reduce your tax burden. Missing the application window could mean missing out on tax relief until the next tax year, so be cautious.