What Are Property Taxes Like in Andover MA and How Much Should I Budget If I Buy a $900,000 Home There?

Andover sets a single residential tax rate each fall for the upcoming fiscal year. For fiscal year 2025, the Board of Assessors set the residential rate at $11.34 per $1,000 of assessed value, as reported by the Andover Townsman. That rate applies to every residential parcel in town, from a modest colonial on a quarter-acre lot to a sprawling estate near Harold Parker State Forest.

The Tax Rate Itself

Massachusetts towns set their tax rates annually, and Andover has historically kept its residential rate in the low-to-mid teens per thousand. The fiscal year 2025 rate of $11.34 represents a modest decrease from prior years, partly because rising property values across town allow the same total tax levy to be spread across a larger assessed base. The commercial rate, which does not affect residential buyers, is set separately.

Andover uses a split tax classification, meaning the town can choose to tax commercial and industrial properties at a different rate than residential ones. For homeowners, the practical effect is that the residential rate tends to be lower than it would be in a town without that split, because some of the tax burden shifts to commercial real estate along Route 28 and the industrial corridor near I-93.

Assessed Value vs. Purchase Price

In Massachusetts, the law requires towns to assess property at full and fair cash value, which means assessed value is supposed to equal market value. In practice, Andover's assessments track closely with sale prices, though there is often a lag of one to two years before a recent sale fully flows through to an updated assessment. If you pay $900,000 for a home today, the current assessed value on the tax records might be $820,000 or $875,000, depending on when the property was last revalued.

Andover conducts cyclical inspections and periodic revaluations to keep assessments in line with the market. After you close, the assessor's office will eventually update the assessed value to reflect your purchase price. When that happens, your tax bill will increase to match the new assessment. Budget for that adjustment in your first one to three years of ownership.

2. Calculating Your Tax Bill on a $900,000 Home in Andover

The math is straightforward: multiply the assessed value by the tax rate per thousand. At the current $11.34 rate, a home assessed at $900,000 generates an annual tax bill of $10,206. If the assessed value at the time you buy is lower than your purchase price, your initial bill will be smaller, but expect it to climb once the assessment catches up.

The Basic Math

Here is how the calculation works at several assessed value points, all using Andover's fiscal year 2025 residential rate of $11.34 per $1,000:

• Assessed at $800,000: $9,072 per year, or about $756 per month
• Assessed at $850,000: $9,639 per year, or about $803 per month
• Assessed at $900,000: $10,206 per year, or about $851 per month
• Assessed at $950,000: $10,773 per year, or about $898 per month
• Assessed at $1,000,000: $11,340 per year, or about $945 per month

These figures do not include any exemptions, which can reduce the taxable assessment and lower the bill. Exemption programs are covered in Section 4.

Monthly Escrow Impact

Most lenders require an escrow account for property taxes when your down payment is less than 20 percent, and many buyers choose escrow even when it is optional. Your lender will divide the annual tax bill by 12 and add that amount to your monthly mortgage payment. On a $900,000 home assessed at full purchase price, that adds roughly $851 per month to your payment on top of principal, interest, and homeowner's insurance.

To put the full picture together: a buyer putting 20 percent down on a $900,000 home in Andover would finance $720,000. At a 6.75 percent 30-year fixed rate as of September 2026, the principal and interest payment would be approximately $4,670 per month. Add $851 in taxes and perhaps $150 to $200 in homeowner's insurance, and your total monthly housing cost lands around $5,700 to $5,750. That is the number to stress-test against your income before you make an offer.

What Shifts Your Bill Up or Down

Several factors can move your actual tax bill away from the baseline estimate. A recent addition, finished basement, or new accessory dwelling unit will increase the assessed value once the assessor inspects the property, which can happen during a routine cyclical inspection or after a building permit is pulled. Conversely, if you successfully appeal your assessment and get it reduced, your bill drops accordingly.

The town's overall levy limit under Proposition 2.5 also constrains how fast the tax rate can rise. Massachusetts law caps annual increases in the total tax levy at 2.5 percent plus the value of new construction added to the tax rolls. Andover voters can override that cap, but historically the town has stayed within it. That gives buyers some predictability: your bill will rise over time, but not dramatically in any single year absent a voter-approved override.

3. How Andover's Tax Rate Compares to Nearby Towns

Andover's $11.34 rate sits in the lower range among Merrimack Valley and I-93 corridor communities. That matters when you are comparing total cost of ownership across towns, because a lower tax rate can offset a higher purchase price over a long holding period.

North Andover and Lawrence

North Andover, which borders Andover to the northeast and shares the same area code and zip code range, carried a residential rate of approximately $13.27 per $1,000 in fiscal year 2025. On a home assessed at $900,000, that produces a bill of about $11,943 per year, roughly $1,737 more annually than the same assessment in Andover. Lawrence, which borders Andover to the south along the Merrimack River, has a significantly higher rate that reflects the city's different tax base and commercial composition.

Wilmington and North Reading

Wilmington, accessible from Andover via I-93 south in about 15 minutes, ran a residential rate of roughly $14.40 per $1,000 in fiscal year 2025. North Reading, another commuter town along Route 28, was similarly in the $14 to $15 range. Both towns offer housing stock that tends to be priced lower than Andover, so the higher rate does not always translate into a higher total bill; it depends on the assessed value of the specific property.

What the Numbers Mean for Your Budget

When you compare towns, always multiply the rate by the assessed value of the specific home you are considering, not a generic average. A $750,000 home in North Andover at $13.27 per thousand costs $9,953 in annual taxes. A $900,000 home in Andover at $11.34 costs $10,206. The Andover home carries a higher dollar bill despite the lower rate, simply because the purchase price is higher. The rate comparison only tells part of the story.

Andover's housing stock at the $900,000 price point typically includes four to five bedroom colonials and Capes built between the 1960s and 2000s, often on lots of half an acre to an acre, with proximity to the MBTA commuter rail at Andover Station providing direct service to Boston's North Station in about 45 minutes. That combination of lot size, commute access, and relatively contained tax rate is part of what drives demand at this price point. For more detail on what the current market looks like, see the Homes for Sale in Andover, MA guide.

4. Tax Exemptions and Relief Programs Available in Andover

Andover offers several exemption programs that can meaningfully reduce your annual tax bill if you qualify. These are not automatic; you must apply through the Andover Board of Assessors each year during the application window, which typically opens in the fall after the tax rate is set.

Residential Exemption

Andover does not currently offer a residential exemption in the way some Massachusetts cities like Boston and Cambridge do. A residential exemption shifts the tax burden toward non-owner-occupied properties by exempting a portion of an owner-occupant's assessed value. Andover has not adopted this option, so every residential property, whether owner-occupied or rented, is taxed at the same rate on its full assessed value.

Senior and Veteran Exemptions

Massachusetts General Law provides a range of property tax exemptions for qualifying residents, and Andover administers all of them. Qualifying veterans with a service-connected disability may receive exemptions ranging from $400 to full exemption depending on the disability rating. Seniors aged 65 and older who meet income and asset thresholds may qualify for Clause 41A deferral, which allows them to postpone tax payments until the property is sold, or for Clause 17D and 41 exemptions that reduce the taxable assessment directly.

Andover also participates in the Senior Work-Off Program, which allows qualifying seniors to perform volunteer work for the town in exchange for a credit against their property tax bill, currently up to $1,500 per year. That program has a waitlist, so if you or a household member might qualify, it is worth applying early.

How to Apply

All exemption applications go through the Andover Assessors' Office, located at Town Hall at 36 Bartlet Street. The application deadline for most exemptions is April 1 of the tax year in question. If you close on a home in the fall or winter, make a note to apply before that deadline. Missing it means waiting another full year. The assessors' staff are generally accessible by phone and email and can walk you through which programs you might qualify for.

5. Property Taxes and the Full Cost of Buying in Andover

Property taxes are one of the largest recurring costs of homeownership, and in Andover they deserve serious attention in your budget. At $10,206 per year on a $900,000 assessed value, taxes represent about 1.13 percent of the purchase price annually. Over a 10-year hold, assuming no rate changes and no assessment adjustments, that is more than $100,000 in property taxes alone.

Taxes as Part of Your Monthly Payment

Lenders use the term PITI, which stands for principal, interest, taxes, and insurance, to describe the full monthly housing payment. When a lender calculates how much you can borrow, they use your PITI payment, not just your principal and interest. A higher tax bill reduces your purchasing power for a given income level. On a $900,000 purchase, the roughly $851 monthly tax escrow contribution is a meaningful piece of that calculation.

Tax Proration at Closing

Massachusetts collects property taxes in quarterly installments, and the closing process includes a proration of taxes between buyer and seller. In Andover, the fiscal year runs July 1 through June 30. Tax bills are issued for the periods July-August, October-November, January-February, and April-May. Depending on when you close, you may owe or receive a credit for the portion of the quarter that falls before or after your closing date. Your closing attorney will calculate this precisely, but plan for it to appear as a line item on your settlement statement.

If you are closing in September 2026, the October-November quarter bill will be issued shortly after closing. Your lender's escrow account may not yet have enough funds to cover it if you just opened the account. Confirm with your loan officer how the first tax payment will be handled so you are not caught short.

Deductibility Under Federal Law

The federal Tax Cuts and Jobs Act capped the state and local tax deduction, commonly called SALT, at $10,000 per year for single filers and married couples filing jointly. For a buyer paying $10,206 in annual Andover property taxes, that cap means virtually all of your tax bill is deductible at the federal level, but only if you itemize deductions rather than taking the standard deduction. Most buyers in this price range should model both scenarios with a tax advisor before assuming the deduction applies to them. The NAR Consumer Guide on Property Taxes offers a useful overview of how property taxes interact with federal tax law for homeowners.

One practical note: if your combined property taxes and mortgage interest exceed the standard deduction threshold for your filing status, itemizing will save you money. On a $720,000 mortgage at 6.75 percent, your first-year interest alone is roughly $48,000. Add $10,000 in taxes and you are well above the 2026 standard deduction for most filers, which means itemizing likely makes sense. Confirm with your CPA.