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H 3278

An Act creating a graduated deed excise tax for affordable housing

194th Legislature (2025-2026) Introduced by Chris Worrell

Massachusetts bill institutes graduated deed excise tax on property transfers, dedicating revenue to affordable housing development through progressive pricing tiers.

Accompanied a study order, see H5309
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Bill Summary · H 3278

Legislative bill overview

H 3278 proposes a graduated deed excise tax in Massachusetts, where property transfers would face varying tax rates based on sale price. Revenue generated would be dedicated to affordable housing initiatives. The bill implements a progressive taxation structure that increases the tax burden proportionally with higher property values.

Why is this important

Massachusetts faces a severe affordable housing shortage, with escalating property costs pricing out low- and middle-income residents. This bill attempts to generate dedicated funding for housing programs by capturing revenue from high-value real estate transactions. The tax structure directly links property market activity to housing affordability solutions, creating a self-funding mechanism.

Potential points of contention

  • Economic impact on real estate markets: Higher transaction costs could reduce property sales activity, particularly in the high-value segment, potentially affecting market liquidity and construction investment
  • Regressivity concerns: While graduated, the tax may ultimately be passed to renters or homebuyers through higher prices, potentially harming affordability efforts it intends to support
  • Implementation complexity: Administering a multi-tiered excise tax requires clear definitions of taxable events, valuation methods, and exemptions (primary residences, transfers between family members, etc.), which could create administrative burden and litigation risk

Compiled from official sources — confirm details with the bill’s official record.

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