Salem · FY2026 property taxes
Salem Property Taxes Explained
Last verified 2026-08-28. Rates from the Massachusetts Division of Local Services, Municipal Databank, FY2026 (dataset verified 2026-07-31). Salem certifies a new rate each December — check the fiscal year on any figure you read elsewhere.
What that means on a real house
A Salem home assessed at $750,000 is taxed at $10.78 per $1,000 of assessed value:
$750,000 ÷ 1,000 × $10.78 = $8,085 per year
That's the base tax only. It excludes Salem's Community Preservation Act surcharge (up to 1% of the tax owed, after exemptions), betterments, and any abatement or exemption you qualify for. Assessed value is the town's figure, not your purchase price — find it on your tax bill or the assessor's database.
How Salem compares
Of the 67 Massachusetts towns tracked here, Salem has the 23rd lowest residential rate — $0.63 below the median of $11.41.
| Town | FY2026 residential rate | Tax on $750,000 |
|---|---|---|
| Arlington | $10.67 | $8,003 |
| Ipswich | $10.78 | $8,085 |
| Salem | $10.78 | $8,085 |
| Beverly | $10.81 | $8,108 |
| Needham | $10.83 | $8,123 |
These are the towns closest to Salem on rate, not the ones closest on the map. And a lower rate does not automatically mean a lower bill — assessments differ too. Compare all 67 towns at your own assessed value →
Salem sets a split tax rate each fall, meaning residential and commercial properties are taxed at different rates. For FY2026 the residential rate is $10.78 per $1,000 of assessed value, and the commercial/industrial rate is $21.89 per $1,000. Both rates were approved by the Massachusetts Department of Revenue and are in effect for the fiscal year running July 1, 2025 through June 30, 2026.
Source: City of Salem Assessors Office, salemma.gov/166/Real-Estate-Tax-Facts. Last verified 2026-08-28.
How Your Bill Is Calculated
Your annual tax bill is straightforward arithmetic: assessed value ÷ 1,000 × tax rate. Salem assesses property at full and fair cash value as of January 1 each year, based on qualified arm’s-length sales from the prior calendar year.
Here is a worked example using a home assessed at $575,000 — close to the city’s current median:
| Line | Calculation | Amount |
|---|---|---|
| Assessed value | — | $575,000 |
| Base tax (residential rate $10.78) | $575,000 ÷ 1,000 × $10.78 | $6,199 |
| CPA surcharge base | $575,000 − $100,000 = $475,000 assessed tax portion × 1% | ~$51 |
| Estimated annual bill | ~$6,250 |
The CPA line is explained in the next section. Bills arrive in four quarterly installments. The first two (August and November) are preliminary bills equal to half of the prior year’s tax plus 2.5 percent. The third and fourth quarters (January and April) are the actual bills that reflect the new rate and any assessment changes.
The Community Preservation Act Surcharge
Salem voters adopted the Community Preservation Act (CPA) in November 2012. Every property owner pays a 1% surcharge on top of the regular property tax bill. The first $100,000 of assessed value is exempt from the surcharge calculation.
Using the $575,000 example above: the taxable base for the surcharge is $475,000. The assessed tax on that portion at $10.78/$1,000 is $5,121. One percent of $5,121 is roughly $51 per year. CPA funds go toward open space, historic preservation, outdoor recreation, and community housing projects in Salem.
Source: City of Salem FY2026 Community Preservation Plan, salemma.gov. Last verified 2026-08-28.
How Salem Assesses Property
The official assessment date is January 1 each year. Values are based on valid arm’s-length sales from the prior calendar year and, for commercial and industrial properties, income and expense data. Salem also operates under M.G.L. Chapter 653 § 40 of the Acts of 1989, a local option that allows the city to capture certain new construction through June 30 of a given fiscal year.
If your property was purchased, sold, subdivided, or substantially renovated after January 1, those changes are typically reflected starting with the third-quarter actual bills. Your assessment record is public and available through the Assessors Office.
Exemptions and Tax Relief
Salem offers several clause exemptions under M.G.L. c. 59, § 5 for qualifying residents, including seniors with limited income, surviving spouses, blind individuals, and disabled veterans. An exemption reduces the taxes owed on your bill; it does not change the assessed value of your property.
Applications for FY2026 exemptions are due no later than April 1, 2026, or three months after the actual tax bills are mailed, whichever is later. The Assessors Office begins collecting applications after Labor Day each September. Filing an application does not pause or delay your tax payment obligation.
Source: City of Salem Personal Exemptions page, salemma.gov/179/Personal-Exemptions. Last verified 2026-08-28.
How to File an Abatement
An abatement is a formal request to reduce your assessed value because you believe it is incorrect — not simply because your bill feels high. The distinction matters: abatements challenge the valuation, not the rate.
By state law, abatement applications for the current fiscal year can only be received during the month of January. Missing that window means waiting until the following year. The Assessors Office has three months after receiving your application to approve or deny it. If denied, you may appeal to the Massachusetts Appellate Tax Board.
To support your application, gather comparable sales from the relevant assessment period and any documentation showing your property’s condition. Filing an abatement does not stop the collection of your taxes — continue paying as billed to avoid interest and penalties.
Source: City of Salem Abatement Procedure, salemma.gov/167/Abatement-Procedure. Last verified 2026-08-28.
Step-by-Step Abatement Process
- Confirm your assessment is incorrect (not just that the bill is high).
- Download the abatement application from salemma.gov or pick one up at the Assessors Office.
- File during January — no exceptions under state law.
- Gather supporting comparables: arm’s-length sales from calendar year 2024 for FY2026 assessments.
- The Board of Assessors reviews your submission and responds within three months.
- If granted, the reduction appears on your third or fourth quarter bill and you receive an abatement certificate.
- If denied, appeal to the Appellate Tax Board — but note that taxes generally must be paid current to preserve your appeal rights.
Tax Deferrals
A deferral is different from an abatement or exemption. It postpones payment rather than reducing the amount owed, and it creates a lien on the property. For some qualifying owners — typically seniors with limited income — a deferral can be a useful cash-flow tool. The filing deadline for tax deferrals in Salem is March 31.
How Salem Compares to Nearby Cities
Salem’s residential rate of $10.78 is among the lower rates on the North Shore for a city with split-rate taxation. Because Salem uses a split rate, commercial and industrial properties carry a heavier share of the levy, which moderates the residential burden relative to single-rate communities.
[VERIFY: Pull current FY2026 residential rates for Beverly, Peabody, and Lynn from taxRates.json for a live comparison table — the template reads these from townSlug rows, so do not hand-type figures here.]
What Buyers and Sellers Should Know
When a property sells, the buyer’s closing attorney will order a Municipal Lien Certificate (MLC) from the City of Salem. The MLC confirms the amount of any outstanding taxes, betterments, or other municipal charges that are liens on the property. In Massachusetts, closings involving a mortgage must be conducted by an attorney under REBA v. NREIS (2011).
Property taxes are prorated at closing based on the number of days each party owns the property in the billing quarter. Your closing attorney will calculate the exact proration. Deed excise is a separate transfer cost — read from taxRates.json for the current Salem figure.
FAQ
What is Salem’s FY2026 residential property tax rate?
The FY2026 residential rate is $10.78 per $1,000 of assessed value, as set by the Salem City Council and approved by the Massachusetts Department of Revenue. The commercial and industrial rate is $21.89 per $1,000.
When is the deadline to file a property tax abatement in Salem?
By state law, abatement applications can only be filed during the month of January for the current fiscal year. There are no exceptions — missing January means waiting until the following year’s window.
What is the Community Preservation Act surcharge and how much is it in Salem?
Salem levies a 1% CPA surcharge on the property tax calculated on assessed value above $100,000. For a home assessed at $575,000, the surcharge adds roughly $50 per year. The funds support open space, historic preservation, recreation, and community housing.
Do I still owe taxes while my abatement application is pending?
Yes. Filing an abatement application does not pause or reduce your tax obligation. Continue paying your bills as assessed to avoid interest, penalties, and potential loss of your appeal rights at the Appellate Tax Board.
Who qualifies for a property tax exemption in Salem?
Salem offers exemptions for qualifying seniors with limited income, surviving spouses, blind individuals, and disabled veterans under M.G.L. c. 59, § 5. Applications open after Labor Day each year and are due by April 1 (or three months after actual bills are mailed, whichever is later). Contact the Assessors Office to confirm current income and asset thresholds.
Informational only, not tax or legal advice. Rates: Massachusetts Division of Local Services, Municipal Databank, FY2026, retrieved 2026-07-31. Confirm current figures with the Salem assessor before relying on them.