The Big Picture: FY2025
Nantucket operates as both a town and a county (the only municipality in Massachusetts with this distinction), which means it handles more services than a typical town. The total general fund budget is about $152.4 million - roughly $14,000 per year-round resident, though the population swells to 50,000+ in summer.
| Total Revenue | $152.4 million |
| Total Expenses | $152.3 million |
| Unused Levy Capacity | $136,443 |
Where the Money Comes From
Nantucket's revenue sources tell an interesting story about island economics. Property taxes dominate - which makes sense given that the island has the 4th highest property valuations in Massachusetts (after Boston, Cambridge, and Newton).
Revenue Breakdown (FY2025)
| Source | Amount | Share |
|---|---|---|
| Property Tax | $121.0 million | 79% |
| Rooms & Meals Tax | $14.5 million | 10% |
| State Aid | $4.8 million | 3% |
| Motor Vehicle Excise | $3.9 million | 3% |
| Licenses & Permits | $2.0 million | 1% |
| Other Local Receipts | $5.0 million | 3% |
Note: Debt exclusions add an additional ~$10 million to the property tax levy for capital projects.
Your Contribution as a Visitor
That $14.5 million in Rooms & Meals Tax comes directly from visitors like you. When you pay your hotel bill or restaurant tab, a portion goes to the town. This accounts for about 10% of Nantucket's total revenue - a significant contribution that helps fund the beaches, roads, and services you enjoy during your visit.
Where the Money Goes
Understanding the expense side is a bit more complex because costs are spread across multiple categories. Here are the major expense buckets:
Major Expense Categories (FY2025)
| Category | Amount | Notes |
|---|---|---|
| School Salaries | ~$33 million | Teachers and school staff |
| Town Salaries | ~$25-29 million | Municipal employees |
| Medical & Insurance | ~$22.7 million | Employee benefits |
| Operations | ~$11 million | Day-to-day costs |
| Retirement | ~$7 million | Pension obligations |
Key Departments and Services
The town funds a wide range of departments that keep the island running:
- Education: Nantucket Public Schools serves about 1,725 students across 4 schools, with total education spending around $50+ million annually
- Public Safety: Police, Fire, and Emergency Medical Services operate year-round with expanded summer operations
- Public Works: Road maintenance, parks, beaches, and infrastructure
- Administration: Town management, planning, permitting, and compliance
- Our Island Home: The town-run skilled nursing facility
Services That Affect Your Visit
As a visitor, you directly benefit from many budget-funded services:
- Beach Maintenance: Lifeguards, facilities, beach cleaning, and dune preservation
- NRTA Shuttle (The Wave): The free island-wide shuttle is partially town-funded
- Roads and Bike Paths: Maintaining the island's 35+ miles of bike paths and roadways
- Public Restrooms: Downtown facilities and beach restrooms
- Police and Fire: Including summer beach patrols and emergency services
- Town Pier and Harbor: Dock facilities and harbormaster services
- Parks and Recreation: Public parks, athletic fields, and recreational facilities
Enterprise Funds: Separate Budgets
Some services operate as "enterprise funds" - meaning they're self-funded through user fees rather than property taxes:
- Water Department: Governed by elected commissioners, funded by water usage fees
- Sewer Department: Covers operations, collections, and construction through sewer fees
- Solid Waste Enterprise Fund (SWEF): Waste management funded by user fees and the town dump sticker
These are separate from the $152 million General Fund budget.
Property Tax Context
With property taxes accounting for 79% of revenue, understanding the tax base helps explain the budget:
- Total Property Valuation: $40.7 billion (4th highest in Massachusetts)
- Number of Parcels: 14,071 real property parcels
- FY2025 Tax Rate: $3.28 per $1,000 of assessed value
- Example: A home valued at $1 million pays approximately $3,280 in annual property taxes
Because Nantucket has such high property values, it can fund substantial services with a relatively low tax rate compared to other Massachusetts communities.
Major Capital Projects
Beyond the operating budget, Nantucket is planning significant capital investments:
- Our Island Home: Approximately $135 million for a new skilled nursing facility
- Athletic Facilities: $23 million improvement plan for Nantucket Public Schools
- Coastal Resilience: Ongoing investments in beach preservation and erosion mitigation
- EV Charging Infrastructure: Town-funded electric vehicle charging stations
These are typically funded through debt exclusions approved at Town Meeting, which temporarily increase property taxes.
Want to Learn More?
Nantucket's Town Meeting (held annually in May) is where citizens vote on the budget and warrant articles. The town publishes detailed budget documents online, and meetings are open to the public. If you're a property owner or interested in island governance, consider attending.
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