Montague, MA Approves FY26 Tax Rates Amid Rising Property Values and Insurance Costs

Montague, Massachusetts homeowners will face an average tax bill increase of $413 for FY26 following the Selectboard's decision to maintain a split residential and commercial tax rate. The residential tax rate is set at $15.13 per $1,000 valuation, while the commercial rate is $25.07 per $1,000. The rise in tax bills primarily results from increased salaries and health insurance costs, driven by budget decisions approved at the Annual Town Meeting, including an 18% health insurance cost increase from the Hampshire County Group Insurance Trust. The average residential property value rose to $325,699 from $295,247, reflecting broader real estate market trends in Massachusetts where housing values have substantially increased over recent years. The Selectboard rejected proposals for open space discounts, residential exemptions, and small commercial exemptions on the advice of the Board of Assessors, aiming to balance tax burdens across residents, small businesses, and industrial entities. The discussion emphasized retaining existing commercial establishments by avoiding excessive commercial tax rate increases while recognizing residents’ limited options to adjust to rising property valuations. Montague's average tax bill remains relatively low compared to other municipalities in Massachusetts, despite the increase, indicating a moderate tax environment amid rising costs and property values. These developments highlight the fiscal pressures local governments face in managing employee-related costs while striving to maintain economic stability for both homeowners and businesses within regulatory and budgetary frameworks.