26% of Cambridge homeowners underpaying their taxes

A recent analysis by Zappeal found that 26% of residential properties in Cambridge are under-assessed relative to neighborhood averages. According to the study that used extensive data on property tax records, including data on assessments and tax bills, Cambridge could be losing millions of dollars of additional tax revenue and increasing the tax burden of other homeowners. In fact, a similar study by Zappeal recently found that 42% of Cambridge homeowners are over-assessed relative to comparable properties.

The map below shows the general distribution of properties that are under-assessed. Zappeal classifies a property as under-assessed if property’s assessment is 10% less than the median comparable neighborhood assessment.

A deep dive into results show additional noteworthy trends. As illustrated below, a higher proportion of single/two/three family homes are under-assessed compared to the condos.

Furthermore, particularly among single family homes, the rate of being under-assessed increases (from 27% to 47%) as property value goes up. This suggests that owners of more expensive properties may be underpaying their taxes compared to other homeowners. This is consistent with another study by Zappeal showing that lower increase in 2020 assessments of more expensive single/two/three family properties resulted in relatively reduced taxes for their owners.

Cambridge tax bills and abatement applications are due November 25th. Visit www.zappeal.io to learn if your property is predicted to qualify for an abatement. You can obtain the abatement materials directly from Zappeal.