Massachusetts Real Estate License Practice Test

How often are tax escrows payable to municipalities in Massachusetts?

1. Once a year

2. Twice a year

3. Monthly

4. Quarterly

The correct answer is: Twice a year

In Massachusetts, property taxes are generally assessed and paid twice a year. Municipalities typically set their fiscal year for tax collection purposes, which runs from July 1st to June 30th. The state mandates that the first half of the property tax bill is due on August 1st, and the second half is due on February 1st of the following year. This biannual payment structure helps municipalities manage their revenue flow and fund local services throughout the year. Monthly payments or quarterly payments are not standard practices for property tax collections in Massachusetts, as the state’s tax law structures the payment schedule specifically around the twice-a-year framework. Annual payments are also not the norm, as collecting taxes in installments aids property owners in budgeting their expenses throughout the year.