WORCESTER—The city council gets its first look Tuesday at Worcester’s fiscal 2026 tax classification package, a yearly step that sets the stage for one of the most closely watched public hearings on the municipal calendar.
The council is scheduled to receive the data at its Nov. 18 meeting, with the formal tax-rate hearing set for Nov. 25.
According to the communication from City Manager Eric Batista, the city’s total assessed value for FY26 is $25.332 billion, a 4.12 percent increase over last year. The figure represents the assessor’s valuation of all taxable property as of Jan. 1, 2025, and has received initial approval from the state Department of Revenue.
The combined single tax rate for FY26 is listed at $16.67 per $1,000 of value. The tax package reflects a Minimum Residential Factor of 79.905 percent, based on the state-allowed maximum shift of 175 percent between residential and commercial/industrial/personal property classes.
New growth came in at $10.37 million, exceeding the city’s budget estimate by more than $3 million, with an additional $1.5 million carried over from the prior year. Growth was recorded across all property classes, with notable increases tied to large-scale residential development and utility investment.
The FY26 budget requires raising $422.4 million through the tax levy. The city’s maximum allowable levy would be $448.2 million, meaning Worcester will maintain roughly $25.8 million in excess levy capacity. Batista wrote that holding that buffer is intended to help the city navigate shortfalls in state aid, cover recurring grant deficits highlighted by the Department of Revenue and meet school spending obligations.
The packet also includes a set of frequently requested tax-rate details. In FY25, Worcester ranked 146th statewide in residential tax rate and 253rd in average single-family tax bills. The city’s commercial/industrial/personal property tax rate ranked eighth highest in Massachusetts. Nearly 23 percent of Worcester’s total property value was exempt last year, one of the highest shares among Gateway Cities.
The city again released its list of top taxpayers, a perennial point of interest. National Grid remains the largest, with an FY25 valuation of $582.7 million and more than $16.6 million paid in taxes, representing 4.17 percent of the levy. Nstar Gas, VHS Acquisition Subsidiary, Worcester TC LLC and New England Power follow on the list, which collectively accounts for more than 11 percent of all taxes raised.
The council takes up the full package at the Nov. 25 tax classification hearing, where it will vote on whether to adopt the administration’s recommendation for FY26.
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