Proposition 2 1/2 limits annual increases in total municipal property tax revenue to 2.5% statewide, with separate limits on the levy ceiling (total tax cannot exceed 2.5% of total assessed value). Cities and towns can exceed these limits through voter-approved overrides or debt exclusions for specific projects. This is why Massachusetts homeowners often see modest annual property tax increases despite rapid home appreciation, but new construction and additions reset baselines.

Approved by voters in 2022, the Fair Share Amendment added a 4% surtax on income over $1 million per year, on top of the flat 5% state rate. Combined top marginal rate is 9%. The threshold is per filing unit (not per spouse), and the surtax revenue is constitutionally dedicated to transportation and education. High earners considering relocation often weigh this against neighboring no-income-tax New Hampshire.

Yes. Unlike some states where homestead protection is automatic, Massachusetts requires you to file a Declaration of Homestead at the registry of deeds in your county. The standard declaration protects $500,000 of equity from most creditors. Filing for elderly or disabled provides $1 million protection. The fee is around $35. Without filing, only $125,000 in automatic homestead applies.