A Taxing Situation – October 6, 2025 City Council meeting and Tax Rate Hearing
Here are the featured items this week:
Manager’s Agenda #1. A communication transmitted from Yi-An Huang, City Manager, relative to Awaiting Report Item Number #25-55 relative to guidance during ICE encounters. [text of report]
Placed on File 9-0
Communications & Reports #2. A communication was received from Commissioner Elow Cambridge Police Department, transmitting a memorandum regarding compliance with the Welcoming City Ordinance (Section 2.129.060), which mandates that a statistical breakdown of ICE interactions with the Cambridge Police. [text of report]
Placed on File 9-0
Manager’s Agenda #2. A communication transmitted from Yi-An Huang, City Manager, relative to the appointment of Marnie Gale and C. Dale Gadsden and the reappointment of Louis Bacci III all for five-year terms to the Cambridge Housing Authority Board. [text of report]
Appointments Approved, Referred to Housing Committee for Discussion 9-0
Manager’s Agenda #7. A communication transmitted from Yi-An Huang, City Manager, relative to Awaiting Report Item #25-20 regarding Incentive Zoning Nexus Study. [text of report]
Placed on File 9-0
Manager’s Agenda #8. A communication transmitted from Yi-An Huang, City Manager, relative to the Zero Emissions Transportation Plan Report. [text of report]
Placed on File 9-0
On The Table #6. A communication was received from Councillor Nolan transmitting a report on the Cambridge Zero Emission Transportation Plan. [Tabled – Sept 15, 2025] [text of report]
Placed on File 9-0
Tax Rate Hearing [6:30pm] Tax Rate Letter from City Manager
Charter Right – Toner
The bottom line is: The FY26 Adopted Operating Budget is $992.2 million which is an increase of 3.8% (or $36.6 million) over the FY25 Adopted Budget. The actual FY26 tax levy required to support the FY26 Budget is $678,852,471 which is an increase of $50,463,718 or 8.0% from FY25. This increase is consistent with the estimated increase of 8.0% projected in June 2025 as part of the Adopted Budget.
The property tax levy increase of 8.0% is lower than the FY25 increase of 9.2%. The five-year (FY22-FY26) annual average increase is 7.53%, and the ten-year (FY17-FY26) annual average increase is 6.72%. The FY26 residential tax rate will be $6.67 per thousand dollars of value, subject to Department of Revenue approval. This is an increase of $0.32, or approximately 5% from FY25. The commercial tax rate will be $14.07, which is an increase of $2.55, or 22% from FY25.
As a result of the market activity in calendar year 2024, which is the basis of the FY26 property assessments, total residential property values increased by 2.6%. Total commercial property values decreased by 11.5%. These mixed results; negative on commercial, and lightly positive for residential, indicate the continued softening of the commercial and lab markets and the slow growth of the residential market with little inventory and high interest rates.
By property class, an average a single-family home will see a 10.21% tax increase, a two-family will see a 9.18% increase, a three-family will see a 8.93% increase, and a condo will see an 13.26% increase. This last figure is interesting in that due to the flat residential exemption, condo owners were actually seeing decreases in recent years and only saw increases last yearand this year. Here are the median figures including the CPA Surcharge:
FY2026 Taxes – including CPA Surcharge and Residential Exemtion
| Residential Property Type |
FY24 Median Tax | FY25 Median Tax | FY26 Median Tax | Median $ increase |
% increase |
| Condominium | $1,555 | $1,734 | $1,964 | $ 230 | 13.26% |
| Single-Family | $7,674 | $8,277 | $9,122 | $ 845 | 10.21% |
| Two-Family | $6,713 | $7,146 | $7,802 | $ 656 | 9.18% |
| Three-Family | $8,246 | $8,865 | $9,657 | $ 792 | 8.93% |
History of changes in residential property taxes
| Median Annual Tax Increases – Cambridge (not incl. CPA surcharge) | ||||
| Tax Year | condo | single-family | two-family | three-family |
| FY2009 | $ 18 | $ 40 | $ 24 | $ 72 |
| FY2010 | $ 69 | $ 119 | $ 47 | $ 41 |
| FY2011 | $ 77 | $ 306 | $ 132 | $ 154 |
| FY2012 | $ 60 | $ 269 | $ 177 | $ 215 |
| FY2013 | $ 65 | $ 159 | $ 80 | $ 85 |
| FY2014 | – $ 38 | $ 109 | $ 110 | $ 201 |
| FY2015 | $ 15 | $ 11 | $ 334 | $ 253 |
| FY2016 | – $ 18 | $ 64 | $ 101 | $ 217 |
| FY2017 | $ 11 | $ 324 | $ 237 | $ 336 |
| FY2018 | $ 76 | $ 136 | $ 33 | $ 61 |
| FY2019 | $ 21 | $ 124 | $ 292 | $ 469 |
| FY2020 | $ 43 | $ 449 | $ 366 | $ 369 |
| FY2021 | $ 3 | $ 246 | $ 131 | $ 218 |
| FY2022 | $ 33 | $ 545 | $ 301 | $ 335 |
| FY2023 | – $ 107 | $ 419 | $ 269 | $ 379 |
| FY2024 | – $ 7 | $ 743 | $ 494 | $ 598 |
| FY2025 | $ 175 | $ 587 | $ 421 | $ 602 |
| FY2026 | $ 224 | $ 821 | $ 638 | $ 770 |
| 5 year average | $63.60 | $623.00 | $424.60 | $536.80 |
| 10 year average | $47.20 | $439.40 | $318.20 | $413.70 |
| 15 year average | $37.07 | $333.73 | $265.60 | $340.53 |
| number of properties (FY2023) | 14841 | 3910 | 2292 | 1168 |
Order #1. That the City Manager is requested to work with the Department of Public Works, the Department of Public Health, and any relevant environmental consultants to provide a comprehensive report on Gold Star Mothers Memorial Park. Mayor Simmons, Vice Mayor McGovern, Councillor Toner
Order Adopted as Amended by Substitution 9-0
Order #4. That the City Manager is requested to work with relevant staff to ensure that the zoning code relating to Institutional Use Regulation is in compliance with State law. Councillor Zusy, Councillor Nolan, Councillor Toner, Councillor Wilson
Order Adopted 9-0
Order #6. That the City Manager is requested to work with relevant departments to consider a plan to better utilize the Russell Youth and Community Center. Councillor Nolan, Councillor Toner, Councillor Zusy, Councillor Wilson
Order Adopted as Amended 9-0
Charter Right #1. Condolences to the family of Red T. Mitchell.
Adopted 9-0
Charter Right #2. That the City Manager is requested to work with the Community Development Department to draft zoning language based on the proposed recommendations, review the feasibility of the proposed recommendations with developers, and consider the possibility of having AHO construction be exempt from the proposed zoning. [Charter Right – Azeem, Sept 29, 2025]
Referred to Housing Committee and Health & Environment Committee 8-1 (Toner-No)