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How Massachusetts compares nationally
Massachusetts towns still look well managed nationally: debt is low and interest is small. The squeeze is structural. Towns raise 95% of local taxes from property, state aid has slipped from 30% to 26% of local revenue since 2012, and pensions are less funded than the US average (52% vs 62%, Federal Reserve estimate).
| Measure | MA | Rest of New England | NY + NJ | Tax-cap states | US | MA rank |
|---|---|---|---|---|---|---|
| Local property tax, % of income, 2024 | 3.4% | 3.7% | 4.1% | 2.8% | 2.8% | 8 |
| Local property tax per resident, 2024 | $3,213 | $3,141 | $3,578 | $2,245 | $2,061 | 5 |
| Local operating spending, % of income, 2022 | 6.2% | 6.4% | 10.6% | 9.5% | 8.0% | 42 |
| Local operating spending per resident, 2022 | $5,312 | $4,805 | $8,177 | $6,918 | $5,302 | 9 |
| Local long-term debt, % of income, 2024 | 3.5% | 3.1% | 9.2% | 11.7% | 8.5% | 44 |
| Local long-term debt per resident, 2024 | $3,317 | $2,609 | $7,970 | $9,505 | $6,294 | 34 |
| State + local taxes, % of income, 2024 | 9.9% | 9.9% | 13.0% | 10.9% | 9.8% | 18 |
| State + local taxes per resident, 2024 | $9,421 | $8,439 | $11,235 | $8,849 | $7,246 | 6 |
| Unfunded pensions, state + local, % of income, 2022 (est.) | 16.0% | 17.5% | 15.6% | 20.7% | 15.0% | 16 |
| Unfunded pensions per resident, 2022 (est.) | $13,654 | $13,113 | $12,070 | $15,132 | $9,950 | 8 |
| Pension funded ratio, 2022 (est.) | 52% | 49% | 67% | 62% | 62% | 41 |
| Property tax share of local taxes, 2024 | 94.9% | 97.9% | 65.6% | 71.3% | 70.7% | 8 |
| State aid share of local revenue, 2024 | 26.0% | 28.2% | 23.5% | 36.3% | 30.2% | 37 |
| School spending per pupil, FY2024 | $24,429 | $24,410 | $30,230 | $19,698 | $17,619 | 5 |
Since 2012: property taxes up, incomes up faster
Since 2012, Massachusetts property taxes grew faster than in the rest of New England or NY + NJ, but incomes grew faster still, so the burden edged down from 3.6% to 3.4% of income. Local debt rose 8% after inflation while most peers paid theirs down.
| Change, 2012 to 2024, after inflation | MA | Rest of New England | NY + NJ | Tax-cap states | US |
|---|---|---|---|---|---|
| Income per resident | +23% | +16% | +19% | +31% | +22% |
| Local property tax per resident | +15% | +4% | +2% | +29% | +10% |
| Local operating spending per resident (2012-22) | +16% | +8% | +14% | +26% | +11% |
| Local long-term debt per resident | +8% | -23% | -28% | +8% | -18% |
| School spending per pupil | +26% | +20% | +18% | +53% | +22% |
| Property tax, share of income | -0.2 pts | -0.4 pts | -0.7 pts | -0.1 pts | -0.3 pts |
| Local debt, share of income | -0.5 pts | -1.5 pts | -6.0 pts | -2.5 pts | -4.2 pts |
| State aid share of local revenue | -4.2 pts | -2.2 pts | -5.5 pts | -1.7 pts | -2.0 pts |
| Pension funded ratio (2012-22, est.) | +7 pts | +8 pts | +12 pts | +11 pts | +10 pts |
MassachusettsRest of New EnglandNew York + New JerseyUnited States
Local property tax, % of residents' income
Local long-term debt, % of residents' income
Notes
- Census counts every government in 2012, 2017 and 2022; other years are sample estimates (Massachusetts local margins about 2.5-10%), so one-year blips such as 2013 debt are noise. 2016 uses Census published totals.
- Spending is shown for 2022, a full count, because the 2024 Massachusetts estimate has a wide sampling margin and an unusual jump of 8% a year. Census data runs about 2 years behind.
- Pensions include the state government, because Massachusetts pays teacher pensions at the state level. Pension figures are Federal Reserve estimates at the start of 2022 using one discount rate for every plan, so liabilities are larger than plans report.
- Tax-cap states have statewide voter-passed property tax limits (CA Prop 13, CO TABOR, MI Headlee, OR Measures 5 and 50). NY and NJ also cap annual levy growth at 2% (laws passed in 2011 and 2010).
- Massachusetts has almost no county government, and the state runs jails and courts that counties run elsewhere, so shares of income, school spending per pupil and state + local totals are the fairest comparisons.
- Inflation adjustment uses the BLS consumer price index (CPI-U, annual average). Fiscal years differ (Massachusetts towns run July to June); income is by calendar year. Local cash reserves are not compared: recent state totals are not published.
Our own calculations from US Census Bureau government and school finance files, BEA personal income, BLS CPI-U and Federal Reserve Board pension estimates. See sources.