Due to the growing number of requests made on behalf of taxpayers, the City decided to include the collection of real estate and personal property bills to the existing online payments, which were water/sewer and excise payments.   

What options do I have to pay my real estate tax bill? 

The City of Cambridge offers several options for the collection of your real estate tax payments.  You can make payments during business hours at the Tax Collector’s Office at Cambridge City Hall, 795 Massachusetts Ave.  You can mail your payment to City Hall or the lockbox service.  In addition to the traditional means of collection methods, the City offers online payments via its website using a credit card, debit card or electronic check. With the exception of water and sewer payments, the City accepts VISA, MasterCard, Discover and American Express for credit card payments. 

If you have any questions regarding the collection processes offered by the City, please contact the Tax Collector’s Office at 617-349-4220. 

Why does the City charge convenience fees for real estate and personal property payments via the website? 

Municipalities cannot legally absorb the costs for credit or debit card transactions for any online payments for real estate or personal property.  

Why did the City implement the convenience fees for water/sewer and excise payments via the website?

Since the implementation of online payments for water/sewer and excise, the City has absorbed the convenience fees.  The number of taxpayers using the online system has grown tremendously over the last several years.   As a result, a greater percentage of the City budget has been allocated to the credit card processing costs.  Therefore, the City made a decision in FY 2012 to implement a convenience fee based system and refrain from passing along these costs to the taxpayers.  Online payments are offered as a convenience to the taxpayer.  The taxpayer still has the options to either mail the payments or pay them in person at the City Hall. 

The City must follow the regulations set forth by VISA which states a convenience fee can only be charged for services/goods that fall into the Merchant Category Codes (MCC) including Governmental and Educational services. Utility Bills are not considered Governmental or Educational services by VISA.  As a result, the City is restricted to only offering MasterCard, Discover, and American Express, all of which allow for third party convenience fees to be accessed.

What does the convenience fee cover?

The fees associated with online payments are assessed by the third party for the handling, bank processing, transaction fees and delivery of online payment services offered to the taxpayer.  The City does not receive any revenue from the convenience fees collected. 

Is the City competitive with other cities and towns in regards to the convenience fees? 

All municipalities are paying approximately the same costs for convenience fees per transaction.  Municipalities cannot legally absorb the cost for credit and debit card transactions for online payments for real estate and personal property.  The fees associated with water/sewer and excise payments are comparable with other communities. 

Do other cities or towns pass on convenience fees?

Legally, no municipality can absorb the convenience fees for real estate and personal property payments.  Based on our research, all other municipalities pass on the convenience fees for online payments.   This is not a cost traditionally offered by cities and towns.

New credit card convenience fees will go into effect on 4/9/2023.
Credit card Fees: 2.95% - Minimum fee $1.95
E-check fees: no change

Administration Division

The Administration Division provides leadership to the operating divisions of the Department, as well as financial policy direction to other City departments. In addition, the annual independent audit of the City's financial records is budgeted in this division. The audit is performed in accordance with generally accepted accounting principles, Government Accounting Standards Board (GASB) requirements, and assures potential purchasers of the City's notes and bonds of the City's fiscal soundness. The independent auditor also makes recommendations to improve the City's financial management.

Revenue Division

The Revenue Division is responsible for collecting and recording all of the City's revenues in a timely and accurate manner and providing a high level of customer service to taxpayers requesting assistance. During the course of a year, the Division processes approximately $430 million in receipts and issues approximately 190,000 bills and notices. The office works with the Law Department to initiate tax title and foreclosure proceedings for severely delinquent properties in order to protect the City's legal interests.

Treasury Division

The Treasury Division is comprised of two cost centers: Cash Management and Payroll. Cash Management is responsible for all of the City's banking, including the banking services contract; identification of all wire transfers into City bank accounts; investment of City cash; management of the City's trust funds; reconciliation of all cash; timely payment of all debt service obligations; and prompt payment of all approved obligations to vendors and contractors. 

Payroll's primary responsibility is the timely weekly payment of approximately 3,000 employees. It is also responsible for paying federal, state and Medicare withholdings; health and life insurance; deferred compensation; retirement; MBTA pass purchases; and administering garnishments and attachments to employees' wages. At year-end, Payroll prepares and distributes approximately 6,500 W2s.