A Massachusetts town is asking homeowners to absorb what many are calling a staggering increase, a proposed 50% increase in property taxes that could add thousands of dollars to annual bills and intensify pressure on already strained household budgets.
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FOX Business’ Gerri Willis joined FOX Business’ Stuart Varney on “Varney & Co.” to report on a contentious vote in South Hadley, where the proposal is exposing a widening gap between rising municipal costs and what residents say they can realistically afford.
The scale of the increase stands out even as property taxes climb nationwide. Homeowners collectively paid nearly $400 billion in property taxes in 2025, with the average bill rising to more than $4,400, according to ATTOM data. At the same time, home values dipped slightly last year, creating a disconnect that is leaving many taxpayers paying more on assets that are not gaining value.
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In South Hadley, officials argue the hike is necessary to keep pace with sharply rising expenses, including employee healthcare costs that have surged more than 40%. Without additional revenue, local services, from school programs to public safety, could face cuts.
Those pressures are not unique. As pandemic-era federal aid fades, municipalities across the country are increasingly leaning on property taxes to close budget gaps, particularly in the Northeast and Midwest, where rates are already among the highest.
That reliance is raising broader concerns about sustainability.
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Government Finance Officers Association CEO Chris Morrill said relying heavily on property taxes to fund local governments is “not sustainable” long-term and could lead to more referendums like the one currently underway in South Hadley.
The debate unfolding in one small town is quickly becoming part of a much larger national conversation over how far property taxes can be pushed before homeowners push back.
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