Nantucket Property Tax Rate: How It Compares to Other Luxury Markets

Nantucket's residential property tax rate is among the lowest of any major luxury market in the country. For fiscal year 2026, the rate is $3.12 per $1,000 of assessed value, an effective rate of roughly 0.31 percent, which means a home assessed at $5 million carries an annual tax of about $15,600 before any exemptions. For buyers weighing Nantucket against other high-end destinations, that low, stable tax burden is a meaningful and often-overlooked part of the island's long-term ownership value. Drawing on more than twenty years selling property on the island, Bernadette Meyer explains what the rate means, how it compares, and the local nuance every buyer should understand.

Key Takeaways

• Nantucket's fiscal year 2026 residential property tax rate is $3.12 per $1,000 of assessed value, an effective rate of about 0.31 percent.
• A home assessed at $5 million is taxed roughly $15,600 per year at that rate, before exemptions.
• Nantucket's rate is well below the national median (near 1 percent) and lower than most comparable luxury resort markets.
• The island offers a residential exemption for owner-occupied primary residences; most second-home and vacation owners pay tax on the full assessed value.

Understanding Nantucket's property tax rate

For fiscal year 2026, Nantucket's residential property tax rate is $3.12 per $1,000 of assessed value, set by the Town of Nantucket. Property tax is calculated with a simple formula: the assessed value divided by 1,000, multiplied by the rate. A home assessed at $1 million owes about $3,120 a year; a $5 million home owes about $15,600.

Expressed as a percentage, that is an effective rate of roughly 0.31 percent, well under the national median of about 1 percent. The Town sets new rates each fiscal year, so the exact figure changes annually; the current rate and the official tax rate history are available through the Town of Nantucket.

How does Nantucket compare to other luxury markets?

Compared with other high-end resort destinations, Nantucket sits at the low end of the range. The figures below are drawn from recent public data and are meant as illustrative context; rates change annually and vary by assessment method, so they should be confirmed locally before relying on them.

• Nantucket, MA: about 0.31 percent
• Aspen and Telluride, CO: about 0.49 percent
• Charleston, SC: about 0.56 percent
• Naples and Palm Beach, FL: about 0.83 percent
• Kennebunkport, ME: about 1.09 percent
• Newport, RI: about 1.63 percent

The pattern is clear: Nantucket's effective rate is among the lowest of any comparable luxury market, and far below most major cities. That said, a lower rate does not always mean a lower bill, because the tax is applied to assessed value. On an island where values are high, total tax can still be substantial; the rate simply means Nantucket owners pay less per dollar of value than owners in most peer markets.

Does Nantucket have a residential exemption?

Yes, and it is the single most important nuance for buyers to understand. Nantucket offers a residential exemption for owner-occupied primary residences, which reduces the taxable value for qualifying residents and shifts more of the tax burden onto second homes, higher-valued properties, and non-owner-occupied homes. The exemption percentage is set annually by the Select Board, so the precise figure should be confirmed with the Town.

The practical implication matters in a market like Nantucket's: because most luxury buyers here are purchasing a second home rather than a primary residence, many do not qualify for the exemption and pay tax on the full assessed value. Buyers planning to make Nantucket their primary residence, by contrast, may see a meaningfully lower bill. Understanding which category a purchase falls into is an important part of estimating true ownership costs.

Why are property tax comparisons complicated?

Comparing tax rates across markets is rarely straightforward, for several reasons. Assessment methods differ: some jurisdictions tax full market value, while others assess at a fraction of it, which can make a headline rate look lower than the real burden. Local exemptions vary widely, as Nantucket's residential exemption shows. Some states cap annual increases, such as California's limit on yearly growth, while others reassess freely. And jurisdictions with low property taxes often offset them with higher income or sales taxes. The takeaway is to compare effective rates and actual bills, not just headline numbers, and to account for exemptions and local policy.

What low, stable taxes mean for buyers and owners

For buyers, Nantucket's low and historically stable property tax is a genuine advantage that is easy to overlook when focusing on purchase price. It keeps annual carrying costs lower than in most peer markets and adds a measure of predictability that owners value over the long term. It is one piece of the full ownership picture, alongside insurance, maintenance, and seasonal upkeep, that the guide to buying a home on Nantucket covers in more detail.

For anyone evaluating a specific property, Bernadette can help frame the full cost of ownership as part of the real estate picture and connect buyers with qualified tax professionals for detailed planning. For a sense of current values, the Nantucket market snapshot tracks recent activity.