New York State has an effective property tax rate of 1.30%, above the national average of 0.90%, but this figure masks an extreme divide: NYC borough homeowners pay effective rates of 0.73% to 1.05%, while upstate county homeowners in Erie and Monroe face rates above 2.40%. On a $400,000 home outside NYC, the annual tax averages approximately $5,200 (est., Tax Foundation 2026 / U.S. Census ACS 2023).
New York State has an effective property tax rate of 1.30%, but this statewide number hides a tale of two tax systems. NYC borough homeowners, especially in Brooklyn, Queens, and Staten Island, face effective rates of 0.76% to 1.05% due to the city’s Class 1 assessment caps. Upstate and suburban county homeowners in Nassau, Westchester, Erie, and Monroe face effective rates of 2.17% to 2.57%, among the highest in the nation, because low home values must generate enough revenue to fund fully staffed local governments and school districts (est., Tax Foundation 2026 / U.S. Census ACS 2023).
New York Property Tax Rates and the NYC Class System Explained
New York State has no single uniform assessment system. Each of the state’s 1,000+ cities, towns, and villages assesses property at a locally determined percentage of market value, and the NYS Office of Real Property Tax Services (ORPTS) applies equalization rates to convert all assessed values to a common full-value basis for school district and county levy apportionment. This means a property taxed at $80,000 in a jurisdiction with a 40% equalization rate has an implied full value of $200,000 for purposes of sharing levies with neighboring jurisdictions.
New York City uses a unique four-class system for its approximately one million taxable properties. Class 1 (one-to-three family residential homes, small condos) is assessed at just 6% of market value, with annual growth capped at 6% per year and 20% over any five-year period. This cap is the reason NYC homeowners in Brooklyn and Queens pay effective rates of 0.76% to 0.89% even though combined tax rates on a per-dollar-of-assessed-value basis appear very high. The assessment cap artificially suppresses the taxable base for long-term owner-occupants.
Outside New York City, property taxes fund a much larger share of school district budgets relative to state aid, and the sheer number of overlapping taxing jurisdictions (counties, towns, villages, school districts, fire districts, library districts, water districts) produces cumulative levies that push effective rates to 2% and above in many upstate markets. Nassau and Westchester counties, despite having high median home values, produce some of the highest absolute property tax bills in the United States.
New York statewide effective rate (est., Tax Foundation 2026). NYC borough homeowners pay 0.76% to 1.05%; Nassau and Westchester homeowners pay 2.17% to 2.57%.
| Home Value | Annual Tax (statewide avg., est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $250,000 | $3,250 | $271 | +$1,000 above avg. |
| $400,000 | $5,200 | $433 | +$1,600 above avg. |
| $600,000 | $7,800 | $650 | +$2,400 above avg. |
| $800,000 | $10,400 | $867 | +$3,200 above avg. |
| $1,000,000 | $13,000 | $1,083 | +$4,000 above avg. |
Estimates use 1.30% statewide effective rate. U.S. average uses 0.90%. No exemptions applied. Source: est., Tax Foundation / Census ACS 2023.
New York STAR Program and Property Tax Exemptions
The School Tax Relief (STAR) program, administered by the NYS Department of Taxation and Finance, provides a reduction in school district taxes for the primary residence of qualifying New York homeowners. The Basic STAR credit is available to homeowners with household income below $500,000. The Enhanced STAR program provides a larger benefit for homeowners age 65 and older who meet annual income thresholds: the 2025 income limit is $107,300 (based on 2023 tax return income), and the 2026 limit is $110,750 (based on 2024 income).
New applicants since 2015 receive the STAR benefit as a check or direct deposit from New York State (the STAR Credit), rather than as a reduction on the tax bill (the STAR Exemption, now closed to new applicants). The STAR Credit amount can grow by up to 2% per year; the legacy STAR Exemption amount is frozen. Basic STAR exempts a base value of roughly $30,000 from school district taxes; Enhanced STAR exempts approximately $84,000 to $88,500 depending on the year, adjusted by local equalization rates.
New York City homeowners may qualify for the NYC Senior Citizen Homeowner Exemption (SCHE), which provides a 50% reduction in assessed value for households with annual income of $50,000 or less. A sliding scale applies for incomes up to $58,399. Qualifying veterans in New York State may receive a 15% reduction in assessed value for wartime service, an additional 10% for combat zone service, and a further reduction equal to 50% of the VA disability rating for service-connected disabilities.
| Exemption / Program | Benefit | Who Qualifies | Income / Age Limit |
|---|---|---|---|
| Basic STAR Credit | Roughly $300 to $500 credit (varies by school district) | Primary residence, any age | Household income below $500,000 |
| Enhanced STAR Credit | Roughly $600 to $1,400 credit (varies by district) | Age 65+ primary residence owners | Income below $107,300 (2025); $110,750 (2026) |
| NYC Senior Citizen Exemption (SCHE) | 50% reduction in assessed value (sliding scale to 5%) | All owners age 65+, NYC primary residence, owned 12+ months | Household income $50,000 or less for 50% tier |
| Veteran Alternative Exemption (Wartime) | 15% of assessed value | Veterans who served during wartime period | No income limit; must be honorably discharged |
| Veteran Exemption (Combat Zone) | Additional 10% of assessed value | Veterans who served in a combat zone | No income limit |
| Veteran Exemption (Disability) | 50% of VA disability rating applied to assessed value | Veterans with service-connected disability | No income limit; based on VA rating |
| Eligible Funds Exemption | Up to $7,500 assessed value reduction | Property purchased with military pension or bonus funds | No income limit |
NYC residents note: The NYC STAR exemption is separate from the state STAR program and is administered by the NYC Department of Finance. NYC homeowners should register for the state STAR Credit through the NYS Department of Taxation and Finance, not through the city directly. The STAR Exemption for NYC (direct bill reduction) was closed to new applicants in 2015.
New York Property Tax Assessment System and Equalization
Outside New York City, each municipality (town, city, or village) sets its own level of assessment (LOA) as a percentage of full market value. Many municipalities assess at 100% of full value, but some assess at lower percentages such as 50% or even 1% (a nominal value). The NYS ORPTS publishes annual equalization rates for each municipality, which are used to equalize assessed values across jurisdictions for purposes of apportioning shared county and school district tax levies fairly.
New York City’s Class 1 residential assessment system is the most distinct in the state. One-to-three family homes are assessed at 6% of market value (the lowest ratio of any class), and annual increases are capped at 6% per year with a 20% ceiling over any five-year rolling period. In practice, this means a Brooklyn brownstone with a current market value of $1.5 million may have an assessed value of only $55,000, and the NYC tax rate (roughly 21% of assessed value) produces an annual bill of about $11,550. The effective rate on market value is less than 0.80%.
New York State imposes a 2% annual property tax levy cap on local governments and school districts under Real Property Tax Law Section 3-c. This limits aggregate levy growth to the lesser of 2% or CPI, though individual districts can override with a 60% supermajority vote. This cap has been in effect since 2012 and has meaningfully slowed the growth rate of property tax bills in most upstate communities.
| System Element | Rule | Impact on Homeowner |
|---|---|---|
| Assessment Ratio (Upstate) | Locally determined; varies from 1% to 100% | Equalization rates normalize values for levy apportionment |
| NYC Class 1 Assessment Ratio | 6% of market value | Produces low effective rates for NYC 1-3 family homeowners |
| NYC Class 1 Annual Growth Cap | 6% per year, 20% over 5 years | Taxable value lags behind market appreciation for long-term owners |
| State Property Tax Levy Cap | 2% or CPI per year (lesser) | Limits growth in tax levies for most local governments and school districts |
| Reassessment Frequency | Varies by municipality; some reassess annually, others rarely | Infrequent reassessment can cause inequities between similar properties |
| Grievance Deadline | Typically third Tuesday in May (varies by municipality) | Homeowners can challenge assessed value annually at Board of Assessment Review |
Major Tax Districts and County Variations in New York State
No state in the country illustrates regional property tax variation more vividly than New York. Brooklyn (Kings County) homeowners pay effective rates of 0.76% on median home values of $860,000, while Erie County (Buffalo) homeowners pay 2.30% on median home values of $240,000, resulting in roughly similar dollar amounts but dramatically different burdens relative to income and wealth. Nassau County on Long Island produces some of the highest median annual property tax bills in the nation at over $13,000, reflecting both high home values and a 2.17% effective rate.
The primary driver of upstate high rates is that municipalities and school districts need fixed dollar amounts to fund basic services (schools, roads, police, fire), and these amounts must be raised from a smaller, lower-value taxable base. A school district serving 2,000 students needs roughly $40 million per year regardless of whether the average home is worth $250,000 or $700,000. Lower home values require higher percentage rates to generate the same revenue.
The table below reflects effective rates from U.S. Census Bureau ACS 2023 five-year estimates and matches the rates in the calculator dropdown. For NYC boroughs, rates reflect the ACS survey-based effective rate on market value and may differ from rates calculated on NYC’s fractional assessed values.
| County | Effective Rate (est.) | Annual Tax on $400k Home | Notes |
|---|---|---|---|
| Kings (Brooklyn) | 0.76% | $3,040 | NYC Class 1 6% assessment ratio and growth cap produce very low effective rates. Source: Census ACS 2023. |
| Queens | 0.89% | $3,560 | NYC Class 1 borough; similar cap protections to Brooklyn. Source: Census ACS 2023. |
| New York (Manhattan) | 0.88% | $3,520 | Extremely high market values further dampen effective rate. Source: Census ACS 2023. |
| Suffolk | 1.89% | $7,560 | Long Island; high school taxes and many special districts. Source: Census ACS 2023. |
| Nassau | 2.17% | $8,680 | Among highest effective rates in state; median annual bill exceeds $13,000. Source: Census ACS 2023. |
| Bronx | 1.00% | $4,000 | NYC borough with lower home values than Brooklyn/Queens; above-average NYC effective rate. Source: Census ACS 2023. |
| Westchester | 2.57% | $10,280 | Highest effective rate among top-10 NY counties; median annual bill exceeds $14,500. Source: Census ACS 2023. |
| Erie | 2.30% | $9,200 | Buffalo area; high rates reflect low home values and large school district funding needs. Source: Census ACS 2023. |
| Monroe | 2.52% | $10,080 | Rochester area; overlapping city, county, and school district levies. Source: Census ACS 2023. |
| Richmond (Staten Island) | 0.94% | $3,760 | NYC borough with highest home values in the city outside Manhattan; Class 1 caps apply. Source: Census ACS 2023. |
| Statewide Average | 1.30% | $5,200 | All owner-occupied properties statewide. Source: Tax Foundation / Census ACS 2023 (est.). |
Recent New York Property Tax Law Changes and 2025-2026 Outlook
The FY 2025 NYS Budget introduced the Affordable Neighborhoods for New Yorkers (ANNY) program (RPTL Section 485-x) to replace the expired 421-a(16) program for new NYC multi-family residential construction. ANNY provides property tax exemptions of up to 40 years for qualifying developments that include affordable housing units and meet prevailing wage standards for construction workers. This program is intended to incentivize new housing supply in New York City by reducing the tax burden on new residential development during the lease-up and stabilization periods.
Effective with the 2026 benefit year, the New York State Department of Taxation and Finance automated the upgrade from Basic STAR to Enhanced STAR for eligible homeowners turning 65, eliminating the requirement to re-apply. This change is expected to ensure that qualifying seniors receive the larger benefit without administrative burden or risk of losing it due to a missed application deadline.
The 2% annual property tax levy cap (RPTL Section 3-c), in effect since 2012, continued through the 2024 and 2025 levy years. For levy year 2024 (taxes payable 2025), the CPI-derived cap allowable was approximately 3.3%, but the statutory 2% ceiling applied for most districts. The federal SALT deduction cap of $10,000 disproportionately affects high-tax New York homeowners: a Nassau County homeowner paying $13,200 per year in property taxes plus New York State income taxes faces a substantial SALT cap limitation, effectively raising their after-federal-tax cost of homeownership relative to pre-2018 law.
| Change | Effective Date | Key Impact | Who Benefits |
|---|---|---|---|
| ANNY Program (Replaces 421-a) | FY 2025 Budget | Up to 40-year property tax exemption for qualifying new NYC residential development | NYC housing developers and future renters |
| STAR Auto-Upgrade to Enhanced | Benefit Year 2026 | Homeowners auto-upgraded to Enhanced STAR at age 65 without re-applying | Senior homeowners turning 65 |
| 2% Levy Cap (Ongoing) | Annual since 2012 | School district and local government levy increases capped at 2% or CPI | All property taxpayers in capped jurisdictions |
| Enhanced STAR Income Limit Increase | Annual adjustment | 2025: $107,300; 2026: $110,750 household income limit | Senior homeowners with rising incomes |
| Cold War Veterans Exemption (NYC) | December 2025 | NYC formally incorporated Cold War veteran service into RPTL 458-a eligibility | NYC Cold War era veterans |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only. New York’s property tax system is among the most complex in the nation, with over 1,000 assessing jurisdictions, multiple tax classes in NYC, and overlapping school district, municipal, and special district levies. Your actual tax bill depends on your municipality’s assessed value, equalization rate, all applicable exemptions (STAR, veteran, senior), and the combined levy rates of every taxing authority covering your address. Before purchasing property in New York, always obtain the current tax bill and ask your real estate agent or attorney about the post-sale assessment implications.
What this calculator does not account for:
- NYC Class 1 fractional assessment (6%) and annual growth caps for NYC borough properties
- STAR credit or exemption amounts that reduce school district taxes
- Municipal, village, town, fire district, library district, and water district levies at your specific address
- Equalization rates that affect how county and school district levies are apportioned
How to get an accurate estimate:
- For NYC properties: look up your property on the NYC Department of Finance property search to find assessed value, tax class, and current bill.
- For upstate properties: contact your municipal assessor or use the county real property tax office records to find the current assessed value and equalization rate.
- Review the tax bill from the most recent completed tax year, identifying each levying authority and amount.
- Register for the STAR Credit through the NYS Department of Taxation and Finance if you are a new primary residence owner.
Data sources: County effective rates use U.S. Census Bureau ACS 2023 five-year estimates. Statewide average uses Tax Foundation 2026. STAR program details from NYS Department of Taxation and Finance. NYC assessment rules from the NYC Department of Finance.
Return to the National Property Tax Calculator to compare New York with other states.