New York Property Tax
Editor’s Note: Both real and personal property can be subject to property taxes, but this article focuses on real property taxes.
In addition to income state taxes, any New York state resident who owns real property is subject to state real property taxes. Property tax is a system of taxation that requires owners of land and buildings to pay an amount of money based on the value of their land and buildings.
Who Owes New York State Property Taxes?
If you own residential or commercial property in New York (NY) state, you will be required to pay taxes on it. Even if the property was gifted to you through an estate or you own a rental property, you are still required to pay New York state property tax.
There is no minimum or maximum amount to pay on your property in New York to pay property tax. Whether you have a $60,000 or $6,000,000 condo, you will owe NY state property tax.
If your property was purchased mid-year, there is a chance your realtor will work it out that you and the seller split the cost of property taxes within the calendar year. Your mortgage interest statement provides documentation if this is the case or not.
What is the New York Property Tax Rate?
In New York, local governments use various methods to calculate your property tax rate.
Learn more about how New York property taxes are assessed. Here’s a summary of how the New York property tax rates are calculated:
You can calculate the amount you pay in property taxes by multiplying
your property’s taxable assessment times the tax rates for school districts, municipalities, counties and special districts.
There are several steps involved in determining tax rates.
- The local jurisdiction develops and adopts a budget.
- The local jurisdiction determines revenue from all sources other than the property tax.
- Revenues are subtracted from the budget and the remainder becomes the tax levy. The tax levy is the amount of the tax levy that is raised through the property tax.
- Tax levy = budget – revenues
To determine the tax rate, the taxing jurisdiction divides the tax levy by the total taxable assessed value of all property in the jurisdiction.
What Are New York Property Taxes Used For?
The money collected by New York state property tax is used for multiple public services throughout the state. For example, funds could go toward:
- First responders and other law enforcement
- General government services
- Local levies
- Municipal infrastructure and land construction or improvements
- Municipal employees’ pay
- Resident services like garbage pickup
- Recreational services
- Protective services
How Do You Pay New York Property Tax?
You can elect to pay New York state property taxes out of escrow, which is drawn from your mortgage. If you elect to do this, your standard mortgage payment will include the following:
- Homeowner’s insurance
- Your New York property taxes
Look at your current mortgage statement and determine if your property taxes are paid as part of your monthly mortgage. It will likely be listed as a line item on the statement.
You can also elect to pay your taxes independent from your mortgage. To do this, you visit the New York State Department of Taxation at https://www.tax.ny.gov/pit/property/default.htm for more information.
When Do You Have to Pay NYS Property Taxes?
Property taxes in New York are due on July 1 and January 1, if you do not pay it as part of your mortgage. If your New York state property taxes are drawn monthly out of escrow, you should have no remaining balance at this deadline.
View the NYS property tax calendar to find additional due dates.
NYS Property Tax Help
Gauging how property tax is calculated and the proper amount is important, otherwise, you may be paying too much, too little, or not at all. Beyond this, there is a federal real estate tax deduction you can take to reduce your overall tax bill.
If you’re looking for additional support with your NYS property tax questions or New York state taxes in general, look no further. With Tax Pro Go, we’ll match you with someone with the right state expertise, including New York property tax help. Tax Pro Go allows you to have your taxes done by a real tax pro without visiting an office. Get matched with a tax pro, upload your tax documents, and we do the rest. It’s that simple.
Taking in these local and state tax considerations, we can make sure you are supported when it comes to taxes.
Looking for more information about your West Virginia refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.
Learn more about the tax implications to consider if you're marrying a non-U.S. citizen and how to decide between your three options at H&R Block.
Find out if you're able to deduct your foreign moving expenses with help from the experts at H&R Block. The rules have changed due to the latest tax reform.
Are you a wage earner in Pennsylvania (PA)? Find out how to check when you may receive your PA state tax refund with help from H&R Block.