New York property tax guide for homeowners

Homeowners in the state of New York pay some of the highest property tax rates in the United States. If you're planning to buy a home in the Empire State, you'll need to know how much you can expect to owe in New York property tax so you can be prepared to pay them.

How are property taxes in New York calculated?

Property taxes in New York fund essential services, including public schools, road maintenance, public safety, parks, and more.

New York doesn’t have one statewide property tax rate. Instead, New York property tax rates are set and collected by counties, cities, towns, and school districts. This means rates vary depending on where you live in New York.

At its core, New York property taxes are based on the value of real property, which includes land plus permanent structures. Homes with a higher assessed value generally pay more in property taxes than homes with lower values in the same area.

Two key terms shape your tax bill: market value and assessed value. Market value is the estimated price your home would sell for today. Assessed value is the value local assessors assign to your property for tax purposes. In many communities, this information is updated annually as assessors review sales data and property characteristics.

And not all New York municipalities assess property at 100% of your home market value. To help standardize taxes across the state, New York uses equalization rates, which adjust assessed values to better reflect actual market value when needed.

New York State uses this basic formula to determine your tax bill:

Taxes owed = (Taxable assessment × Property tax rate per thousand)

Your taxable assessment is your assessed value minus any New York property tax exemptions you qualify for. Then, that number is multiplied by the tax rate set by your local taxing authorities.

How much are property taxes in New York?

New York has some of the highest property taxes in the nation. According to the Tax Foundation, the state’s effective property tax rate is about 1.26%, ranking ninth-highest nationwide.

If you own a home valued at $650,000, you can pay roughly $ 8,190 per year using that statewide average. Your bill could be higher or lower depending on your community's rates, your home's assessed value, and any exemptions you may qualify for.

It's also important to note that rates in New York vary significantly across regions, and property taxes can increase periodically. Some areas have effective rates under 1%, while others approach 3% or higher, according to the Tax Foundation.

New York property tax exemptions and relief

New York offers several property tax exemptions to reduce the taxable value of your home, which can reduce your annual property tax bill. These programs are invaluable for homeowners who qualify based on income, age, disability status, or military service.

Here are some of the most common New York property tax exemptions:

• STAR (School Tax Relief) exemption. The STAR program reduces school property taxes for owner-occupied primary residences. Basic STAR is available for most homeowners who meet the income limit, while Enhanced STAR offers greater savings for eligible seniors.
• Senior citizen exemption. Offers a partial exemption for homeowners age 65 and older who meet income requirements. The amount can vary by location, but it can reduce the taxable assessment by up to 50%.
• Veterans exemption. New York offers three property tax exemptions to eligible military veterans, as well as additional savings for those with service-connected disabilities. Benefits vary based on service status and local rules. Property tax relief helps lower veteran housing costs and support long-term veteran housing stability.
• Exemption for persons with disabilities. Reduces property taxes by up to 50% for qualifying homeowners with disabilities who meet income limits.

To take advantage of these exemptions, you’ll need to apply through your local assessor’s office and meet eligibility requirements. Deadlines vary by locality, so it’s a good idea to check your community’s application timeline and gather income and residency documentation early.

If you believe your property’s assessed value is too high, New York also allows homeowners to challenge their property tax assessment. If your appeal is successful, your home's assessed value and your tax bill may be reduced. These challenges typically must be filed by a set date each year, so keep an eye out for your municipality's deadline.

Paying New York property taxes

Most New York homeowners receive property tax bills in the months of September and January. Exact billing dates vary by county and city.

If you have a mortgage, your taxes may be bundled into your monthly mortgage payment and held by your lender in an escrow account. Your lender pays the bill on your behalf when it’s due. An escrow account can make budgeting for property taxes easier, since taxes are spread out over the year instead of arriving as a large lump sum.

If your mortgage is paid off, you’ll pay property taxes directly to your local tax office. Most municipalities accept payments online, by mail, over the phone, or in person.

Late property tax penalties

New York homeowners with a mortgage usually avoid late fees because property taxes are paid through an escrow account. But for homeowners who pay property taxes directly, interest charges can begin to build when taxes aren’t paid on time.

Does New York state charge interest on back property taxes? Yes. The state generally charges 1% per month on overdue taxes, though some areas, including New York City, have higher rates. These can be between 6% and 16% per year, depending on how late the payment is. Falling behind for too long can lead to more serious consequences, including tax liens and foreclosure in more extreme cases.

If you're having trouble making a payment, contact your local tax office as soon as possible. Many municipalities offer solutions, such as payment plans, to help you get back on track.

Bottom line: Budget for your New York property tax bill

Property taxes are a big part of the cost of owning a home in New York. Knowing your local tax rate, monitoring changes to your home's assessed value, and staying informed about exemptions for which you may qualify can make a significant difference in your bill.

If your taxes are paid through escrow, review your statements annually to ensure the correct amount is being collected. And if you pay taxes directly, be sure to mark your calendar for the due dates so that payments don't sneak up on you.

Are you considering buying a home in New York? Apply for a mortgage today with Rocket Mortgage.