Boston's Local Taxes & Fees: The Rules That Matter

Every city handles local taxes & fees a little differently. In Boston, Massachusetts, there are 2 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Affordable Housing Linkage Fee

Boston Zoning Code §80B-7 imposes a Development Impact Project linkage fee on large commercial projects, funding affordable housing and job training across the city.

Key details: Trigger: 100,000+ sq ft commercial. Housing rate: ~$30+/sf 2024. Jobs rate: ~$5+/sf 2024. Authority: BZC §80B-7. First adopted: 1983.

Failure to pay linkage fees results in withheld certificates of occupancy, BPDA enforcement, lien against the property, and ineligibility for further BPDA approvals citywide.

Compared to other cities, Boston takes a harder line on affordable housing linkage fee. The enforcement and penalty structure reflects that.

Parking Tax

Boston commercial off-street parking facilities collect Massachusetts sales tax on parking fees and may face additional Massport and Convention Center surcharges; Boston has no separate citywide parking excise tax.

Key details: State sales tax: 6.25% on parking. City surcharge: None. Authority: MGL Ch. 64H. Logan facilities: Massport surcharge. Late-pay penalty: Up to 25%.

Failure to collect or remit the 6.25% state sales tax on parking exposes operators to back taxes, interest, and penalties up to 25% under MGL Ch. 62C §33; willful evasion is a felony under §73.

The rules around parking tax in Boston lean permissive, but that does not mean anything goes.

The Bottom Line

Boston's local taxes & fees rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Boston is broadly strict or permissive.

These rules come from Boston's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.