July 23, 2026
BU will make annual cash payments to Boston, up to $8.3 million in fiscal 2030.
JHVEPhoto/Getty Images
Boston University will pay the city of Boston $104 million in cash and other benefits over the next five years as part of a payment in lieu of taxes—or PILOT—agreement, The Boston Globe reported. It’s the first written PILOT deal between BU and Boston in more than 25 years and the largest in the city’s history, according to Mayor Michelle Wu’s office.
BU will make annual cash payments to Boston, starting at $6.7 million for fiscal year 2026, which ended in June, and increase that total each year up to $8.3 million in FY 2030. The university will also provide $12.7 million in community benefits, such as scholarships for Boston public school students, for FY 2026, and ratchet up those contributions to $14 million per year. In total, BU will contribute $22.3 million annually to the city by 2030—a 19 percent increase from what the university paid in fiscal year 2025, the Globe reported.
