Worcester To Set 2021 Tax Rate As Property Values Soar

WORCESTER, MA — The Worcester City Council on Tuesday will set 2021 tax rates amid a big rise in property values across the city.

Even if Worcester keeps tax rates flat compared to 2020, property owners might still see a rise in tax bills due to higher values. The average assessed value of a single-family home jumped to about $268,000 this year, up from $248,000 last year, according to the assessor.

Citywide, assessed property values rose 8 percent in fiscal 2021, according to City Assessor Samuel Konieczny. New growth was about $7.3 million, $2 million more than the city budgeted.

Worcester in fiscal 2021 could also have the highest excess levy capacity in city history, Konieczny wrote in a memo to Councilors. Worcester only needs to raise about $331 million for the budget, but the city's total levy capacity is $351.2 million.

Typically, the City Council will elect to split the tax rate, shifting the levy burden away from residential property owners and onto commercial and industrial properties. Without the shift, the combined citywide tax rate would be $20.97 per $1,000.

In 2020, the City Council approved a split tax rate that was $17 per $1,000 for single-family homeowners, and $35.16 per $1,000 for commercial owners. The business community, led by the Worcester Regional Chamber of Commerce, usually opposes the split rate. Worcester has not had a combined tax rate since the mid-1980s.