Nantucket’s 2025 residential property tax rate is $3.28 per $1,000 of assessed value. This means a home valued at $5 million would have an annual property tax bill of $16,400 (nantucket-ma.gov). Understanding how this compares to other markets helps homebuyers, investors, and property owners make informed decisions.
However, property tax rates are complex. Differences in assessment methods, exemptions, and local policies make direct comparisons challenging. Some states cap annual increases, while others tax the full market value.
How Nantucket’s Property Tax Rate Compares
To provide a comprehensive comparison, we've analyzed property tax rates in a selection of markets that share key characteristics with Nantucket. These include:
- Luxury Resort Destinations: Newport, Aspen, and Palm Beach, chosen for their coastal or high-altitude locations, high median home values, and appeal to affluent buyers.
- Cities with High-End Property Concentrations: New York City, Dallas, and San Francisco, selected for their consistently high property values and significant presence of luxury homes.
These markets were chosen based on the following criteria:
- Comparable median home values.
- Significant presence of seasonal residents or investment properties.
- Availability of reliable property tax data.
Property tax data was gathered from official county assessor websites and municipal tax records for the most recent fiscal year available.
Luxury Resort Markets
Aspen, Colorado: 0.49% effective tax rate. A $5 million home would have an annual tax bill of $24,500 (belonghome.com & Assessor Pitkin County, CO).
Telluride, Colorado: 0.49% effective tax rate. A $5 million home would have a $24,500 tax bill (belonghome.com & Assessor San Miguel County, CO).
Charleston, South Carolina: 0.56% effective tax rate. A $5 million home would have a tax bill of $28,000 (belonghome.com & Charleston County, SC Tax Information).
Naples and Palm Beach, Florida: 0.83% effective tax rate. A $5 million home would have an annual tax of $41,500 (belonghome.com, Collier County Tax Collector & Palm Beach Constitutional Tax Collector).
Yellowstone Club, Montana: 0.74% effective tax rate. A $5 million home would have an annual tax of $37,000 (belonghome.com & Gallatin County Assessor).
Newport, Rhode Island: 1.63% effective tax rate. A $5 million home would be taxed at $81,500 per year (belonghome.com & Tax Assessor’s Office - City of Newport).
Kennebunkport, Maine: 1.09% effective tax rate. A $5 million home would have a $54,500 tax bill (businessinsider.com & Property Tax Office Kennebunkport, ME).
Why Tax Comparisons Are Complicated
Assessment Methods Differ
Some locations tax based on full market value, while others assess at a percentage. New York City, for example, assesses properties at only a fraction of market value, making the effective tax rate appear lower.
Local Exemptions Impact Actual Tax Bills
Some states offer homestead exemptions, reducing the tax burden on primary residences. Florida and Texas provide property tax reductions for full-time residents, but investors or second-home owners pay higher rates.
Caps on Annual Increases
Some states limit how much property taxes can rise. California’s Proposition 13 caps increases at 2% per year, keeping long-term homeowners’ tax bills lower than new buyers’.
Varying Public Services and Fees
Some states with low property taxes rely on higher sales taxes, income taxes, or special assessments. Texas has no state income tax, but property taxes are high to compensate.
Key Takeaways for Homeowners and Investors
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Nantucket’s tax rate is lower than many cities and resort destinations.
- Homeowners in Newport, Boston, and Chicago pay significantly more in property taxes.
- Dallas and Chicago have some of the highest tax burdens in this comparison.
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Nantucket has a lower tax rate than Florida and Montana resort markets.
- Property owners in Naples, Palm Beach, and Yellowstone Club pay more in taxes relative to Nantucket.
- Florida has no state income tax, which offsets higher property tax rates for some residents.
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Colorado and Washington, D.C., have some of the lowest tax rates.
- Aspen, Telluride, and Washington, D.C. have lower effective tax rates than Nantucket.
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Property values matter as much as tax rates.
- A lower tax rate does not always mean lower tax bills. Aspen and Telluride homes often exceed $10 million, meaning total taxes are higher despite the lower percentage.
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Investors should factor in long-term appreciation and tax stability.
- Nantucket’s high property values and stable tax rate make it attractive for long-term investment.
- Markets with fluctuating tax policies, such as New York City and Chicago, may pose greater tax risk.
Final Thoughts
Nantucket remains an attractive place to own property, with a lower tax rate than many high-end markets. Its tax burden is much lower than major cities like Boston and Chicago while remaining competitive with other resort towns.
If you are considering a real estate investment in Nantucket, I can provide local insights and access to expert property tax guidance. Contact me for details on property values, market trends, and tax planning tailored to your real estate goals.
Disclaimer:
This article is for informational purposes only and should not be relied upon for financial, tax, or investment decisions. Property tax rates, assessment methods, and local regulations vary and are subject to change. While efforts have been made to ensure accuracy, there is no guarantee that the information provided is complete or free from errors. The publisher is not liable for any inaccuracies, omissions, or changes that may occur after the publication date. Readers should consult local tax authorities, financial advisors, or legal professionals for the most up-to-date and accurate property tax information before making any real estate decisions.
