New York Property Tax Overview

Keywords: New York property tax, property tax in New York, New York property tax rate

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1. Key Statistics

According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023), the figures above represent the most recent available data for New York.

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2. How Property Taxes Are Calculated

1. Assessed Value – Local assessors determine the market value of a property.
2. Assessment Ratio – Some jurisdictions apply a ratio (e.g., 50 % of market value) to arrive at the assessed value.
3. Tax Rate (Mill Rate) – The local government sets a tax rate, expressed as a percentage or “mills” (one mill = 0.001 %).
4. Tax Bill – The assessed value is multiplied by the tax rate.

The effective property tax rate reported by the ACS (1.60 %) is the median annual tax divided by the median home value, providing a comparable measure across jurisdictions.

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3. Example Tax Bills

Using the statewide effective rate of 1.60 %:

These calculations illustrate how the tax burden scales with property price. Actual bills may differ due to local assessment practices, exemptions, and supplemental levies.

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4. Comparison to the National Average

• Effective tax rate: New York (1.60 %) vs. United States average (0.97 %).
• Relative difference: New York’s rate is 65.39 % higher than the national average.
• Ranking: With an effective rate of 1.60 %, New York ranks #47 out of 52 states and territories, indicating a relatively high property‑tax burden compared with most other jurisdictions.

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5. Variation by County

Property‑tax rates are not uniform across the state. Each county (and many cities and school districts) sets its own tax rate and assessment policies. Consequently:

• Higher‑rate areas such as Westchester County and parts of Long Island often exceed the statewide effective rate.
• Lower‑rate areas like parts of upstate New York (e.g., Franklin County) may fall below the 1.60 % median.

Taxpayers should consult the local assessor’s office for the precise rate applicable to a specific parcel.

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6. Considerations for Retirees and Landlords

Retirees

• Tax burden: The higher effective rate can increase the cost of homeownership for retirees on fixed incomes.
• Exemptions: Many counties offer senior homeowner exemptions or circuit‑breaker programs that reduce taxable value for qualifying seniors. Eligibility varies by jurisdiction.

Landlords

• Operating costs: Property owners who rent out residential units must incorporate the higher tax expense into rent calculations.
• Deductibility: Property taxes are generally deductible as an expense on federal income tax returns for rental properties, which can offset part of the cash outlay.
• Investment analysis: The above example bills ($4,001 on a $250 k property, $8,003 on a $500 k property) should be factored into cash‑flow projections.

Both groups should evaluate local tax rates and any available exemptions when assessing affordability.

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7. Frequently Asked Questions

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References

• U.S. Census Bureau, American Community Survey (ACS) 5‑year estimates, 2023.

All figures are presented as reported in the ACS and are intended for informational purposes only.