The Cambridge City Council voted unanimously on Monday to boost property taxes by eight percent for fiscal year 2026 – this includes a steep 22 percent jump for commercial properties – much to the dismay of residents and business owners alike.
The increase also features a five percent rise in residential property taxes, which results in a smaller overall hike across both residential and commercial rates compared to last year’s fiscal 25, according to City Manager Yi-An Huang ’05’s report.
Still, the commercial tax rate hike this year is more than double what was approved for fiscal 25, causing worry among local businesses. Council members defended the move Monday, saying raising taxes is necessary to prevent budget cuts.
Councilor Paul F. Toner pointed out how tough it is to keep taxes low while still supporting essential services many in Cambridge rely on-things like emergency responders, universal pre-k programs, and new school buildings.
“If people are serious about saying they don’t want to pay increases in taxes, then they need to understand that there’s going to come a day when we have to say we’re going to have to start making some cuts,” Toner said.
Vice Mayor Marc C. Mc Govern added that finding places to cut won’t be easy.
“I just want to point out the school budget is 30 percent of the city’s budget. So where are we talking about cutting? We’re talking about cutting this public schools budget,” Mc Govern said. “Public safety is a big part of our budget. Okay? Where do you want to cut in public safety?”
The budget issue has been a constant source of stress for the Council this year as they’ve tried funding new initiatives amid the slowest budget growth seen in ten years.
Business owners slammed the Council for poor communication about the tax changes-especially with such a big increase hitting commercial properties directly affecting them.
Denise A. Jillson, executive director of the Harvard Square Business Association (HSBA), spoke out expressing “disappointment and frustration” on behalf of local businesses. She said many were caught off guard by the commercial tax hike and only found out hours before Monday’s first special meeting on it.
Once she learned about it herself, Jillson quickly alerted HSBA members with an urgent message explaining the proposed increase and encouraged them to speak up during public comments at that meeting.
“If approved, the commercial tax rate will see a 22% increase that will find its way to our retailers, restauranteurs, hotels, etc. and ultimately, the consumer,” Jillson wrote.
At Monday’s session she expressed hope for better communication from city leaders moving forward during future budgeting talks.
“What we’re asking as we move forward into the development of the FY27 budget is that you have continued engagement and communication with the Council and that we meet frequently, particularly as the budget process unfolds,” Jillson said. “We could have done that, and probably should have done more of that last time around. And I don’t think any one of us anticipated this kind of a burden.”
Mc Govern mentioned he doesn’t think landlords necessarily have to pass these higher costs onto their tenants.
“They’re concerned about passing these expenses on to their tenants, and they’re afraid that their tenants might leave and then they’ll have a vacancy. Well, don’t pass it on, right?” Mc Govern said.
Councilor Patricia M. “Patty” Nolan ’80 emphasized her focus for fiscal year 2026 will be keeping residential tax rates manageable and affordable. She also noted many businesses won’t actually see an increase in what they owe.
“Their taxes aren’t even going up in dollar terms because their valuation went down so much that a 22 percent raise in the rate has meant that their actual bill is very similar to what it was last year,” Nolan explained.
But if valuations go up instead-which could happen-Nolan warned those increases could really hurt some Cambridge businesses financially.
“It means that their actual dollars being paid is more than 22 percent. It could be as high as 27 or 30 percent for a few properties, and that is something very challenging for people to sustain,” she said.
-Staff writer Shawn A. Boehmer can be reached at [email protected]. Follow him on X @Shawn Boehmer.
-Staff writer Mackenzie L. Boucher can be reached at [email protected].>
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