New York Property Taxes
Overview of New York Property Taxes
Property taxes are tax levies applied to property value, which are imposed by local governments. The State of New York and all other local governments in New York collect a total of $296 billion in revenue every year. Of that, $56 billion comes from property taxes, making up 19.2% of the total revenue.
The average home value in New York is $384,145, and, as a result, the average tax bill paid by New Yorkers is $5,463. In comparison, the median national property tax bill is $1,917, meaning the New York property tax rate is about 96% higher than the national average.
In New York, property taxes are assessed by local governments, county governments, and school districts. These taxes are local government’s largest single revenue source and used to fund schools, police and fire departments, municipal services, and road maintenance. New York’s property tax rates vary greatly between New York City and other parts of the state. This is due to the city’s high real estate value. A homeowner in New York City typically pays an average of $8,237 in property taxes annually, while the statewide average is $4,915.
If you are planning to buy a home in New York and want to understand how much your property tax bill could potentially cost, check out our New York Property Tax Tool to see what your bill would be.
Properties in New York, with the exception of New York City and Nassau County, are assessed at a constant percentage of market value every year. Your assessment will therefore be equivalent to an annual fixed market value determined by your local assessor. Nonetheless, properties are reassessed annually, and you can always appeal your property taxes if you disagree with the assessment. Note that while assessments can be appealed, tax rates cannot.
How is the New York property tax rate calculated? It begins with an assessment. Your local government is responsible for determining your property’s market value. The taxing authority then applies your area’s tax rate to that value. For instance, if your home is worth $300,000, and the local authority assesses the tax at a rate of 2.5%, your annual property tax would be calculated to $7,500. More information on how your local government assesses your property and develops your tax bill can be found for free on the NYC Department of Finance website.
Property taxes collected in New York City account for about 45% of City tax collection and are distributed to various city agencies, including those responsible for health & welfare, education, housing, and transportation.
New York Property Tax Due Dates
When are property taxes due in New York? In New York City, the property tax year begins July 1 and ends June 30. Depending on the property’s assessed value, homeowners can pay New York City property taxes two to four times a year. If your property’s assessed value is below $250,000, then your bill is mailed four times a year. This falls on the first days of July, October, January, and April. There is a 15-day payment grace period. However, if you pay after the grace period, interest charges are calculated from the first due date.
For homeowners who have their property assessed value exceeding $250,000, their New York property tax due dates fall on the first day of July and the first day of January. There is no payment grace period, but if the due date is on a weekend or a federal holiday, property tax payments are due on the next business day.
Due dates across the rest of New York can vary by county and municipality and can be found for free on the New York Office of Real Property Tax Services website. Property owners who pay their property tax bill early will receive an early payment discount. You will receive 0.5% off the full amount if you pay before July, 0.25% off if you pay by October, and 0.125% off if you pay before January.
New York Property Tax Exemptions
The state of New York offers several tax exemptions to reduce property taxes. The most common are the Homestead Property Tax Exemption and the Senior Citizen Exemption.
New York Homestead Exemption
Homeowners can take advantage of the Homestead Property Exemption, or the School Tax Relief Program, to reduce their taxable property’s value. This exemption applies to residential properties used as the primary residence by the owner. The amount varies between localities, can range from $75,000 to $150,000, and can double for married couples. A married couple in Suffolk County, for example, can get an exception up to $300,000, for example. Those who don’t qualify for exemptions are expected to pay their property taxes in full before the due date unless they appeal their property taxes.
New York Senior Citizens Exemption
Senior citizens can take advantage of the Senior Citizens Exemption, which reduces the taxable assessment of an elderly person’s home by up to 50%, a significant reduction. To qualify, you must be at least 65 years old, or older, and meet certain income limit requirements. Each county, city, town, village, or school district is allowed to set the maximum income limit to any figure between $3,000 and $29,000.
Other New York property tax exemptions include exemptions for individuals who have a documented disability and meet certain income limitations. Typically, the exemption is 50% off the property’s value. Veterans also may qualify for property tax exemptions. However, each locality decides whether to offer a Veteran’s Exemption. You can learn more with TaxProper’s county-specific property tax guides.
How to Appeal Your Property Taxes in New York
You can appeal your property taxes in New York if you think you are being unfairly assessed. There are two levels of appeal, administrative appeals and judicial appeals. Administrative appeals are informal, and conducted at the municipal level. Most jurisdictions have their own process for administrative appeals, but generally follow the same steps from county to county:
- Obtain your assessment
- Determine if you are overassessed
- Complete forms needed to appeal
- File property tax appeal
- Prepare for hearing
- Attend hearing
- Appeal the decision
Each local goverment in New York will have its own process for how to do each step. If you are are a current homeowner in New York or are looking at buying a specific property in Illinois, you can also use TaxProper to determine if you should consider appealing your property tax assessment and to handle the appeal process for you.
Judicial appeals are a formal legal process, and have two levels. First is the Small Claims Assessment Review (SCAR), which is available to all homeowners. Following SCAR, you can file for tax certiorari proceedings with the New York State Supreme Court. An attorney is required for this option.
How to Appeal Your Property Taxes in New York City
To demonstrate how to complete these steps, we are going to walk you through how to appeal your property taxes in New York City, the largest municipality in New York
Obtain your assessment
Residents of New York City are assessed by the NYC Department of Finance. To get your assessment, you can either check the assessment notice mailed to your home or look up your assessment online on the NYC Department of Finance website. The State of New York also has a guide for finding your assessment if you are not located in NYC.
Determine if you are overassessed
A property tax appeal contests the assessor’s value of a property by providing evidence that the market value of the property is lower than the assessor’s value. The best way to determine if you are overassessed is by looking at what other properties similar to yours sold at. You can use websites like Zillow or TaxProper’s search tool to research sales of properties similar to yours and determine market value. The State of New York also has a guide to help you estimate your home’s market value.
Complete forms needed to appeal
Assessment and valuation forms can be found on New York City’s Department of Finance website. The forms include a request for review, request to update, and administrative review.
File property tax appeal
In New York City County, appeals can be filed online through the NYC Tax Commission website. You can do this annually between March 1st and March 15th. The commission reviews and determines annual applications for correction of assessment that are filed by owners who feel like their properties have been wrongly assessed.We recommend filing online for a speedier response.
Municipalities in New York post assessments annually and you are usually required to file before Grievance Day. Grievance Day typically falls on the fourth Tuesday in May, but you should always check the date with your local assessor.
Prepare for hearing
In New York City, your preparation will consist of compiling the evidence you need to submit to the Assessor’s office. You will want to make a strong case, preferably with comparable sales, that if your property was sold, it would be sold for less than your assessment.
You do not need to attend the hearing in New York City. Your request to lower New York property taxes takes anywhere between two to three months, sometimes longer, depending on the time you filed your appeal.
Appeal the decision
If you get a negative decision but believe your property is overassessed, you will need to file with the Small Claims Assessment Review (SCAR).
Property Tax Information for New York Counties
The table below provides county-level information about how property taxes work in each New York county.
Want to learn more? Click the county links to learn more about a specific New York county.
|County||Average Home Value||Average Tax Bill||Bill per $1,000|
|New York County||$1,316,208||$6,736||$5.10|
|St. Lawrence County||$139,486||$2,548||$18.30|