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By Giulia Carbonaro
Senior Reporter
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Homeowners in the sleepy college town of South Hadley, Massachusetts, are facing a potential 50 percent property tax hike as the local government tries to cover a significant budget gap.
The proposal, which is estimated to be able to raise $11 million for the town while increasing property tax bills to about $1,700 a year, according to the Daily Hampshire Gazette, has sparked what some newspapers are calling a “war” among residents.
Some say they could lose their homes if the prospected hike is approved and implemented.
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A Hot Topic Across the Country
Property taxes have risen all across the country since the start of the pandemic, as a home-buying frenzy sparked by historically low borrowing costs clashed with a chronic lack of supply, bringing up home prices.
The additional financial burden has been weighing heavily on U.S. homeowners, especially low-income households and seniors on fixed incomes. Their struggle has emboldened Republican lawmakers across the country to push forward proposals to significantly reduce property taxes and even abolishing them entirely, as in the case of Florida.
But experts have been warning against such drastic measures, saying that local governments might not be able to recoup the loss in revenues and public-funded services, such as law enforcement, schools, and roads, might suffer.
Why South Hadley Homeowners Face Such A Big Hike?
South Hadley’s Budget Task Force announced a $3.5 million deficit for fiscal year 2027, which is projected to grow by $2 million each year and result in major cuts to school and town services.
Residents are heading to the polls Tuesday to vote on how to close this budget gap. Two override questions have been approved to solve the issue and will be on the ballot: $9 million raised over the next four years and $11 million raised over five years.
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According to estimates made by a tax override calculator on South Hadley’s town website, the average single-family home valued at $417,000 would pay an additional $1,443 in property taxes with a $9 million override, for a total of $8,346. With an $11 million override it would pay $1,764 more, or $8,477 in total, by fiscal year 2031.
This calculation, the Daily Hampshire Gazette pointed out, does not include the annual 2.5 percent tax increase communities can automatically adopt under Massachusetts law, and it does not break down the incremental increases seen each year.
If neither of the two questions passes, the average single-family home valued at $417,000 would pay $6,472 over five years, according to the town.
What Has Been the Residents’ Reaction?
Massachusetts is already one of the most expensive states in the nation for property tax bills, with homeowners paying an average of $7,900 per year, according to the latest ATTOM data reflecting 2025 rates.
That is likely why many homeowners in South Hadley, a town of 18,000 people, are less than enthusiastic about the potential property tax increase.
The Wall Street Journal reported that neighbors are stealing signs in favor and against the hike from each other’s backyard, prompting local police to issue the following warning: “Stealing signs won’t change minds, just your criminal record.”
But the town is trying to increase its revenues after reporting a 42 percent jump in health-care costs and shrinking state aid, Chris Morrill, chief executive of the Government Finance Officers Association, told the WSJ, adding that more places in the U.S. might soon face a similar challenge.
“It’s really a preview of what communities across the country are going to face,” Morrill said. “I think South Hadley’s perhaps the canary in the coal mine.”
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