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Buying a home in Boston, Massachusetts

In Boston, the median value of owner-occupied homes is $763,800, Suffolk County's effective property tax rate is 0.66%, a purchase mortgage carried a median $5,414 in total loan costs in 2025, and median gross rent is $2,147 a month.

Data as of : Census ACS 2025 1-year, Census Vintage 2024, FHFA HPI 2026Q2, Census ACS 2020-2024, HMDA 2025, HUD FY 2027. Sources

Checked on against the official sources listed at the bottom of the page.

Boston home costs, fact by fact

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If you buy

Massachusetts state transfer tax

Deeds excise (G.L. c. 64D): $2.28 per $500 of price ($4.56 per $1,000) outside Barnstable County; $3.24 per $500 in Barnstable County. Change the price: the amount is recalculated instantly.

Price$763,800
State transfer tax$3,483.84
Share of the price0.46% of the price
Who paysThe seller

Default price: the Boston median value of owner-occupied homes, $763,800 (Census ACS 2025). Rule: Price minus the value of any lien that stays on the property, divided by $500, rounded up to the next whole unit, times $2.28. Barnstable County uses $3.24 per unit. Applies to consideration above $100. Who pays: The tax is paid by the person who makes or signs the deed, or for whose benefit it is signed (c. 64D, section 2), which is the seller on a sale. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Massachusetts transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Massachusetts state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Boston is $763,800, according to the Census Bureau’s 2025 American Community Survey. The City of Boston’s residential property tax rate is $12.40 per $1,000 of value for 2026, according to its Assessing Department. Income-eligible first-time buyers can get city down payment help of up to $50,000.

How much homes cost in Boston

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on Massachusetts home prices explains the method in detail.

AreaMedian value, 2025 (ACS)Margin of error (90%)
City of Boston$763,800±$30,739
Suffolk County$741,800±$20,600
Boston–Cambridge–Newton, MA-NH metro area$713,900±$6,347
Massachusetts$626,900±$4,178
United States$371,100±$646

*Source: U.S. Census Bureau, ACS 1-Year Estimates 2025, table B25077.

Are Boston prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Boston, MA metro division, published August 25, 2026, shows:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Boston, MA metro division+4.6%+32.4%
Massachusetts+3.6%+35.0%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Boston-area prices rose faster over the past year than both the state and the nation, after a gain of about a third over five years.

Closing costs at the median price

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, the inspection, title and recording fees. Several depend on the loan and on the providers you choose, so there is no single official figure. For the rules, who pays each item and a worked example, see our guide to closing costs in Massachusetts and our page on transfer tax in Massachusetts.

Property tax in Boston

The City of Boston Assessing Department says the city uses a classification system that charges different rates for residential and commercial property. The tax rate is the amount owed for each $1,000 of value.

Property type2026 tax rate (per $1,000 of value)
Residential$12.40
Commercial, industrial, personal property$26.96

Source: City of Boston, Assessing Department, “How We Tax Your Property”.

The fiscal year runs from July 1 to June 30, and bills come quarterly. The first two bills are estimates based on the prior year’s value and rate; the current year’s rate appears on the third-quarter bill, typically issued in late December. The city also notes that Proposition 2½ caps how much the city can raise in total, but does not limit the year-to-year growth of an individual home’s assessment.

A worked example

Take a home assessed at the Boston median value, $763,800, with no exemption. At $12.40 per $1,000, the bill is $763,800 ÷ 1,000 × 12.40 = about $9,471 a year, or roughly $789 a month. This is an illustration: the assessed value of a real home differs from the ACS median.

Residential exemption

If you own and live in the home as your primary residence, you may qualify for the city’s residential exemption, which excludes part of the value from taxation. The Assessing Department says it saved qualified owners up to $4,353.74 last fiscal year, and that it is applied to the third-quarter bill. A home rule petition expanded it: for fiscal year 2027 (July 1, 2026, to June 30, 2027), owners who recorded a deed at the Suffolk County Registry of Deeds and occupied the home between January 1 and June 30, 2026 may qualify. The deadline for fiscal year 2027 is April 1, 2027. Our Massachusetts property tax guide covers abatements and the wider state rules, and our escrow account guide explains how tax can be paid through your monthly mortgage payment.

Help for Boston buyers

The Boston Home Center (Mayor’s Office of Housing, 26 Court Street; 617-635-4663) offers financial help, classes and counseling for first-time buyers. For households under 100% of area median income, the First-Time Homebuyer Program gives up to 3% of the price plus eligible closing costs, with a $50,000 maximum; between 101% and 135%, up to 2% with a $35,000 maximum. The home must be a one- to three-family property or condominium in Boston. The city also lists ONE+Boston, a discounted-rate mortgage program, and a matched-savings program for first-generation buyers. Amounts, income limits and the state’s MassHousing programs are compared in our guide to Massachusetts first-time buyer programs.

Massachusetts guides for Boston buyers

Frequently asked questions

What is the median home price in Boston?

The Census Bureau’s 2025 American Community Survey puts the median value of owner-occupied homes in the city of Boston at $763,800 (±$30,739). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Boston going up?

According to the FHFA purchase-only index, prices in the Boston metro division rose 4.6% between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 32.4%.

What is the property tax rate in Boston?

The City of Boston’s 2026 residential rate is $12.40 per $1,000 of assessed value. The rate for the 2027 fiscal year will appear on the third-quarter bill, typically issued in late December.

How much property tax would I pay on a median-priced home in Boston?

On a value of $763,800 with no exemption, the 2026 residential rate gives about $9,471 a year. The residential exemption lowers the bill for owner-occupants; the city says it saved qualified owners up to $4,353.74 last fiscal year.

Is there help for first-time buyers in Boston?

Yes. The Boston Home Center’s First-Time Homebuyer Program offers up to $50,000 for households under 100% of area median income, and up to $35,000 between 101% and 135%. A homebuyer class and a pre-approval from a participating lender are required.

More Massachusetts guides

Sources

Questions about buying a home in Boston

How much is property tax in Boston?

Homeowners in Suffolk County pay a median $4,649 a year in property tax, 0.66% of the county median home value of $705,800 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Boston?

Home-purchase mortgages in Suffolk County carried median total loan costs of $5,414 in 2025; half of the 3,934 loans fell between $4,490 and $7,448 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Boston?

Massachusetts has no tax called a transfer tax but charges a deeds excise under G.L. c. 64D of $2.28 per $500 of price outside Barnstable County and $3.24 per $500 in Barnstable County. It is paid by the person who signs the deed, usually the seller.

Is it cheaper to rent or buy in Boston?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Boston ($731,700) equals 28.4 years of the median gross rent ($2,147 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Professionals by sector of Boston

Who licenses each trade in Massachusetts

Other large cities: see cities in Massachusetts.

Data sources for the figures above

Massachusetts · All states · Federal guides