Massachusetts Community Preservation Act Explained: CPA Surcharge Guide
The Community Preservation Act (CPA) is a Massachusetts-specific surcharge on property taxes that funds affordable housing, historic preservation, and open space. About 190 of the state’s 351 municipalities have adopted it. If you buy in a CPA town, you’ll pay an extra 1–3% on top of your regular property tax bill. It’s not huge money — typically $100–$500 per year for a median-priced home — but it’s one of those Massachusetts quirks that catches newcomers off guard. Here’s how it works and what it means for your bottom line.
How the CPA Surcharge Works
The CPA adds a surcharge to your property tax bill. Key mechanics:
- Surcharge rate: Each town votes on a rate between 1% and 3% of the annual property tax
- Exemption: The first $100,000 of assessed value is exempt from the surcharge in every CPA town
- State match: The state provides a partial match from the Community Preservation Trust Fund (funded by registry of deeds surcharges). The match has declined from 100% in early years to 20–30% in recent years.
- Local control: Each town’s CPA Committee recommends how to spend the funds, and Town Meeting votes to approve specific projects
CPA Surcharge Calculation Examples
| Town | CPA Rate | Home Assessed Value | Taxable for CPA ($value – $100K) | Tax Rate (per $1,000) | Annual CPA Surcharge |
|---|---|---|---|---|---|
| Cambridge | 1.5% | $925,000 | $825,000 | $5.86 | $73 |
| Somerville | 1.5% | $780,000 | $680,000 | $10.15 | $104 |
| Plymouth | 1.5% | $530,000 | $430,000 | $12.67 | $82 |
| Newton | 2% | $1,100,000 | $1,000,000 | $10.58 | $212 |
| Concord | 3% | $950,000 | $850,000 | $12.45 | $317 |
| Brookline | 1.5% | $1,100,000 | $1,000,000 | $9.35 | $140 |
The CPA surcharge is modest. Even on a $1.1 million home in Newton at 2%, it’s $212/year. In Cambridge at 1.5%, it’s just $73/year. Use our property tax calculator to estimate your total tax bill including CPA.
What CPA Funds Pay For
CPA revenue must be divided among three mandatory categories, with at least 10% going to each:
| Category | Minimum Allocation | Examples |
|---|---|---|
| Open Space / Recreation | 10% | Land acquisition, park improvements, trail creation, playgrounds |
| Historic Preservation | 10% | Building restoration, monument preservation, historic document conservation |
| Community Housing | 10% | Affordable housing construction, rental assistance, housing rehabilitation |
| Undesignated (flexible) | Up to 70% | Any of the above categories, plus Town Meeting-approved projects |
The remaining 70% is allocated annually by Town Meeting based on CPA Committee recommendations. Some notable CPA-funded projects:
- Cambridge: Affordable housing construction ($15M+ allocated since adoption)
- Somerville: Community Path extension, playground renovations, affordable housing
- Concord: Historic building restoration, conservation land purchases, affordable housing
- Plymouth: Waterfront improvements, historic site preservation, recreation facilities
Which Towns Have Adopted CPA?
About 190 of 351 Massachusetts municipalities have adopted CPA. Notable adoptions and rates:
| Town/City | CPA Rate | Year Adopted | Notable |
|---|---|---|---|
| Cambridge | 1.5% | 2001 | One of the earliest adopters |
| Somerville | 1.5% | 2012 | Focus on affordable housing |
| Newton | 2% | 2001 | High rate, significant funding |
| Brookline | 1.5% | 2001 | Mix of housing and open space |
| Concord | 3% | 2004 | Highest rate in the state |
| Plymouth | 1.5% | 2002 | Historic preservation focus |
| Northampton | 1.5% | 2001 | Affordable housing and conservation |
Notable non-adopters: Boston, Worcester, Springfield, Lowell, and New Bedford have not adopted CPA. Some attempted and voters rejected it. In Boston, the city has pursued alternative funding mechanisms for affordable housing.
How CPA Affects Home Buying
The CPA surcharge is small enough that it shouldn’t determine where you buy. But it’s worth knowing for several reasons:
- Budget accuracy. When comparing towns, include CPA in your total tax bill. A town with lower base taxes but CPA may equal a town with slightly higher base taxes and no CPA.
- Community investment. CPA towns tend to have better-maintained parks, more affordable housing options, and preserved historic character. The surcharge funds tangible community improvements.
- Future adoption. Towns can adopt CPA at any time through ballot vote. If you’re buying in a non-CPA town, it could adopt in the future.
- Exemptions for seniors. Some CPA towns exempt low and moderate-income seniors from the surcharge. Check with your assessor’s office.
CPA Exemptions
Every CPA town exempts the first $100,000 of assessed value. Some towns have added additional exemptions:
- Low-income exemption: Some towns exempt households earning below a specified income threshold
- Senior exemption: Some towns exempt seniors 60+ who meet income requirements
- Moderate-income exemption: Households earning 80–100% of area median income may qualify in certain towns
Exemptions vary by town — check with your local assessor’s office for your specific community’s rules.
Tips for Understanding CPA in Your Home Purchase
- Check if the town has adopted CPA. The Community Preservation Coalition maintains a full list of CPA towns at communitypreservation.org.
- Include CPA in your cost comparison. When comparing two towns, add CPA to the base property tax for an apples-to-apples comparison.
- Attend Town Meeting. CPA spending is decided at Town Meeting. If you want a say in how the surcharge funds are used, participate in local government.
- Factor it into your mortgage budget. While small, the CPA surcharge is a permanent addition to your housing costs. Include it in the tax portion of your PITI calculation.
Use our property tax estimator to estimate your total bill and our calculate monthly costs to see how it affects monthly payments.
Compare With Other States
Property tax surcharges and exemptions in other states?
- Indiana Homestead Standard Deduction Explained
- Missouri Homestead Exemption Explained
- New York STAR Exemption Explained
Related Massachusetts Guides
- How Much Does Window Replacement Cost in Massachusetts in 2026
- How to Winterize Your Massachusetts Home: Complete Guide
- How to Pass a Title V Septic Inspection in Massachusetts: What Sellers Need to Know
- Moving to Cambridge MA in 2026: Cost of Living, Housing, and What to Know
- How to Buy Your First Home in Massachusetts: Complete Guide for 2026
Frequently Asked Questions
What is the Community Preservation Act in Massachusetts?
The CPA is a Massachusetts law allowing towns to levy a 1–3% surcharge on property taxes to fund open space, historic preservation, and affordable housing. About 190 of 351 Massachusetts towns have adopted it. The first $100,000 of assessed value is exempt from the surcharge.
How much does the CPA surcharge cost?
On a $600,000 home in a town with a 1.5% CPA rate, the surcharge applies to $500,000 of value. Your annual CPA surcharge would be 1.5% of the property tax on $500,000 — typically $50–$150/year depending on the tax rate. It’s a modest cost that funds community improvements.
Does Boston have the CPA?
No. Boston has not adopted the Community Preservation Act. The city has pursued alternative funding mechanisms for affordable housing, including the Inclusionary Development Policy and linkage payments from commercial developments.
Can the CPA rate change?
Yes. Towns can vote to increase or decrease the CPA rate at Town Meeting or special election. The rate must stay between 1% and 3%. A few towns have increased their rates since initial adoption. Any change requires voter approval.
Does the CPA surcharge apply to commercial property?
Yes, but only in towns that apply it uniformly. Most CPA towns apply the surcharge to all property classes (residential, commercial, industrial). The $100,000 exemption applies per property, not per owner.
Is CPA a good thing for homeowners?
Generally yes. CPA-funded projects (parks, trails, historic restoration, affordable housing) improve community quality and can support property values. The cost is modest — typically $50–$300/year for most homeowners. Critics argue it’s a regressive tax that hits fixed-income homeowners, which is why many towns add income-based exemptions. Use our home budget calculator to see the full cost picture including CPA.