New York Property Tax

Calculating Property Taxes in New York

Calculating the New York property tax bill for a given property involves the property’s assessed value, the applicable tax rate, and any exemptions.

In New York, local assessors determine your property’s market value and apply an assessment ratio, often 100% in many jurisdictions, to arrive at the assessed value. The taxing authority (county, city/town, school district, etc.) sets the tax rate (sometimes expressed as a “mill rate,” or dollars per $1,000 of value). Those rates combined to equal your total property tax rate.

Property Tax Formula:

Property tax = (assessed value – exemptions) x tax rate

How NY Compares Nationally

The state’s average effective property tax rate is about 1.38% of home value (as of 2022), which ranks New York around 13th highest among states.

As a result, the average New Yorker pays roughly $5,100 in property taxes annually on a median-priced home. By comparison, the U.S. national average effective rate is about 1.04%. Upstate New York, in particular, has some counties with very high rates (3-4% of value), while downstate areas like NYC have lower rates but much higher property values.

In short, New York property owners face a heavy tax burden relative to many other states.

County/Municipality-Specific Rates

Property tax rates can vary widely across New York’s counties and municipalities. Below are a few examples of county tax rates (expressed as effective full-value rates) to highlight the range:

1. Albany County: Approximately $27 per $1,000 of full market value (about 2.7%). As the state capital’s county, Albany’s combined tax rate (city/town, county, school) was around 27.4% in 2021. A home valued at $250,000 would mean roughly $6,850 in annual taxes.

2. Westchester County: Approximately $27-$28 per $1,000 (around 2.7-2.8%). The rate is moderate, at ~27.2 in 2021, but because home values in Westchester are very high, residents often pay some of the highest dollar-amount taxes in the U.S.

3. Suffolk County (Long Island): Approximately $18–19 per $1,000 (about 1.9%). Suffolk County’s effective tax rate is lower than many upstate areas (18.9% in 2021), but with median home prices on Long Island often $400k+, tax bills easily reach $7,000–$8,000.

4. Allegany County: Approximately $41 per $1,000 (about 4.1%). A rural county in Western New York, Allegany had one of the highest full-value tax rates at 41.4% in 2021. Properties there are assessed at 100% of value, and despite relatively low home values, the percentage of tax is high; for example, a house valued at $100,000 might result in a bill of approximately $4,100 annually.

5. New York City (five boroughs): NYC’s property tax system is unique. NYC splits properties into classes (1-4) with different rates.

Property Types

For one- to three-family homes (Class 1), the nominal tax rate for 2025 is 20.085% of assessed value. However, NYC assesses residential property at only 6% of market value for Class 1, so the effective rate ends up around 0.88% of the market value (much lower than the rest of NY). In practical terms, a NYC townhouse worth $1,000,000 might have an assessed value of $60,000 (6%) and be taxed at 20.085%, resulting in about $12,000 tax, which is ~1.2% of the market value.

Larger residential buildings (Class 2) are taxed at 12.5% of assessed value (45% of market value), etc. So, while NYC’s published rates seem high, the effective tax burden on homeowners is relatively low compared to upstate (though NYC residents also pay high city income taxes).

Property Reassessments and Increases

Reassessments in New York do not occur every time a property changes hands, but they are still routine.

Most towns reassess annually or every few years to keep property values aligned with the market. If you added an accessory unit, finished a basement, new roof, or built a garage, you can expect a reevaluation. Improvements that increase market value often result in a higher assessment and, therefore, a higher tax bill. That increase can significantly impact your bottom line if you’re unprepared for it.

For landlords, staying informed can help prevent surprises and enable smarter decisions before starting any significant upgrades.

Reducing Taxes and Exemptions

Reassessments or property changes can affect your property tax assessments. Deadlines to prove these changes vary, but many towns hold a “Grievance Day” in May, where you can formally contest your property tax assessment. You will need proof, like a comparable sale or an appraisal, to argue for a lower tax.

Beyond appeals, New York offers several exemptions.

• Senior citizens: Homeowners 65 years or older who meet local income requirements can get up to 50% off the assessed value of their home.
• Disabled veterans and Gold Star spouses: Honorably discharged military veterans may be eligible for property tax relief under several NY programs.
• Organization-specific: Certain organizations can be fully exempt from property taxes, including (but not limited to) properties like churches, private schools, charitable hospitals, and government-owned buildings.

Property Tax Deductions

New York property taxes on rental properties are deductible, and that deduction can make a real difference come tax time. As a landlord, you can write off the full amount of property taxes you pay on a rental against your rental income. You’ll report it on Schedule E of your federal return, along with other allowable expenses like repairs, insurance, mortgage interest, depreciation, and utilities.

In some cases, landlords show a paper loss (even when the property is cash-flow positive), which lowers overall income tax liability.

And unlike deductions on your primary residence, rental property taxes aren’t capped. Every dollar you pay can work in your favor, especially when stacked with other write-offs. It’s one of the most significant tax advantages of owning investment property.

How Often You Need to Pay Taxes

New York property taxes are paid in two installments, one for school taxes and one for city or county taxes. School taxes typically come due in early fall, while municipal taxes are due in January.

Due Dates:

If you pay property taxes quarterly (for properties with an assessed value of less than $250,000), you have a 15-day grace period to pay. If the payment is due on July 1, you can pay by the 15th with no penalty.

However, if you completely miss a due date, interest accrues daily based on an annual rate (7% or 18%, depending on the amount and property class) starting from the due date.

You can pay your property taxes online, by mail, in person, or sometimes over the phone.

What Do Property Taxes Pay for in New York?

Every property owner might wonder, “Where do my tax dollars go?” Property taxes are the lifeblood of local government and schools in New York. They fund a wide array of services that directly affect community well-being.

Here’s a breakdown of major spending categories supported by property tax revenues:

• Public education (schools): In most areas, the largest portion of your property tax bill goes to the public school district. These funds cover teacher and staff salaries, textbooks, classroom supplies, student transportation (school buses), building maintenance, construction, school safety, and educational programs. For example, if you pay $8,000 in property taxes, more than half often goes towards your local school’s budget.
• Police, fire, and emergency services.
• Infrastructure and public works: Taxes also support the roads you drive on, the buses you ride, and the pipes that transfer water in and waste out.
• Property taxes also help maintain public libraries, parks, trash pickup, and the offices that handle permits, zoning, and community programs.

In short, whenever you pay your New York property tax bill, you help transfer resources into the local services that shape your day-to-day life. You may not always notice them, but you’d notice if they disappeared.

Resources and Contacts

• NY Landlord-Tenant Laws
• Local Housing Authorities
• Legal Aid and Landlord Associations
• Eviction Court Contact Info