California vs New York
California
Property‑Tax Comparison: California vs. New York
Intro
Both California and New York have some of the nation’s highest home values, but their property‑tax burdens differ markedly. Using the latest five‑year estimates from the U.S. Census Bureau’s 2023 American Community Survey (ACS), this article presents a side‑by‑side view of key metrics, identifies which state has the lower effective tax rate, and outlines the groups for whom the comparison is most relevant.
Side‑by‑Side Metrics
| Metric | California | New York |
|---|---|---|
| Effective property‑tax rate | 0.71 % | 1.60 % |
| Median home value | $695,400 | $403,000 |
| Median annual property tax | $4,926 | $6,450 |
| Property tax on a $250,000 home | $1,771 | $4,001 |
| Property tax on a $500,000 home | $3,542 | $8,003 |
| Median household income | $96,334 | $84,578 |
| Source | According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates) | According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates) |
Which State “Wins” on Property Tax
- Winner (lower rate): California
- Rate difference: 0.89 percentage points (California’s 0.71 % vs. New York’s 1.60 %).
- Relative difference: New York’s rate is about 55.6 % higher than California’s.
- Annual tax gap on a $250 k home: $2,230 (California $1,771 vs. New York $4,001).
- Annual tax gap on a $500 k home: $4,461 (California $3,542 vs. New York $8,003).
Why California wins – The effective property‑tax rate is the primary determinant of the yearly tax bill. Even though California’s median home price is higher, its lower rate results in a smaller median tax liability ($4,926) than New York’s ($6,450).
Who Might Use This Comparison
| Audience | Why the data matters |
|---|---|
| Current homeowners | Assess whether relocating to the other state could reduce property‑tax expenses. |
| Prospective homebuyers | Compare the ongoing tax cost alongside purchase price when evaluating affordability. |
| Retirees | Property taxes are a recurring expense that can affect fixed‑income budgets; lower rates may extend retirement resources. |
| Real‑estate investors | Tax burden influences net cash flow and return on investment calculations. |
| Policy analysts | Provides a baseline for evaluating the impact of state‑level tax structures on housing markets. |
Additional Resources
- Detailed information on California’s property‑tax system: California property tax
- Detailed information on New York’s property‑tax system: New York property tax
Methodology note – All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates). The “effective property‑tax rate” is calculated as median annual tax divided by median home value. No adjustments for local exemptions, rebates, or assessment practices have been applied.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.