Boston’s New 2% Real‑Estate Tax: A Push for Affordable Homes

The city’s mayor has moved a bill that would add a 2 percent fee on home sales above $2 million. The fee is aimed at raising money for low‑income housing, but critics say it will make doing business in Boston more expensive. The proposal was signed by the mayor after a city council vote that approved it last month. It will now go to state lawmakers for review. The fee would only apply to the portion of a sale that exceeds $2 million, so smaller deals are untouched. Supporters argue the tax could bring in about $160 million if it had been adopted earlier. They point to similar measures that have passed in other Massachusetts cities, hoping the money will go into a neighborhood housing trust.Opponents include real‑estate groups who say the fee would hurt commercial property sales, especially after the pandemic. They claim that the tax has failed to pass in the state legislature for years, suggesting it may not be effective. The city has also considered other taxes, such as congestion pricing for drivers. The new fee adds to a growing list of revenue ideas that aim to address Boston’s housing crisis, but it remains controversial and has yet to clear the state’s approval.