New York Property Tax Guide 2025

New York has some of the highest property taxes in the nation, with an average effective rate of 1.62%. Rates vary dramatically — from under 0.9% in Manhattan to over 3% in some upstate counties. The average NY homeowner pays about $6,800 per year.

How NY Property Taxes Work

New York property taxes are levied by multiple taxing jurisdictions — your county, town/city, school district, and special districts each set their own rate. Your total tax bill is the sum of all these rates multiplied by your assessed value.

Assessments in New York vary widely. New York City assesses properties at a fraction of market value (about 6% for single-family homes), while many upstate municipalities assess at or near 100% of market value. The equalization rate published by the state helps compare assessments across jurisdictions.

Average Property Tax Rates by Region

The STAR Program

New York's School Tax Relief (STAR) program is the most widely used property tax exemption in the state. There are two versions:

• Basic STAR: Available to owner-occupied primary residences with household income under $500,000. Provides a reduction on the school tax portion of your bill (worth about $300/year as a credit).
• Enhanced STAR: For homeowners age 65+ with income under $98,700 (2024). Worth roughly $650-$750/year depending on location.

New applicants receive STAR as a check or credit (not an exemption on the bill). Register at the NYS Tax Department website.

How to Challenge Your Assessment (Grievance)

In New York, the process to challenge your assessment is called filing a grievance. Here's how:

1. Check tentative assessment roll — Published May 1 in most municipalities (January 15 in NYC). Find your property on TaxLookup.ai to see current values.
2. Compare to market value — Determine what your home would actually sell for. If the assessed value (adjusted by equalization rate) exceeds market value, you have grounds.
3. File Form RP-524 — Submit to your local Board of Assessment Review (BAR) by Grievance Day (usually the 4th Tuesday in May).
4. Attend the hearing — Bring comparable sales data, photos of property conditions, and any appraisals.
5. If denied, appeal to SCAR — Small Claims Assessment Review is a low-cost option (filing fee under $30) for residential properties under $450,000 assessed value.

NYC Property Tax Classes

New York City uses a unique four-class system that taxes different property types at different rates:

• Class 1 (1-3 family homes): Assessed at ~6% of market value. Tax rate ~20.3%.
• Class 2 (apartments, co-ops, condos): Assessed at ~45% of market value. Tax rate ~12.3%.
• Class 3 (utilities): Tax rate ~12.3%.
• Class 4 (commercial): Assessed at ~45% of market value. Tax rate ~10.7%.

This system means a $1M single-family home in Brooklyn might pay less in taxes than a $500K condo — a frequent source of controversy.

Key Exemptions & Abatements

• Senior Citizen Exemption (RPTL §467): 50% reduction for owners 65+ with income under ~$37,400 (varies by municipality).
• Veterans Exemption: 15% for wartime veterans, additional 10% for combat zone service, plus 50% for disabled veterans.
• SCHE (NYC): Senior Citizen Homeowners' Exemption — up to 50% reduction for 65+ with income under $50,000.
• DHE (NYC): Disabled Homeowners' Exemption — same benefits as SCHE for qualifying disabled owners.
• 421-a (NYC): Tax abatement for new residential construction — being phased out/replaced.
• J-51 (NYC): Abatement for building renovations and conversions.

Important Dates

• May 1: Tentative assessment rolls published (most municipalities outside NYC)
• 4th Tuesday in May: Grievance Day (deadline to file challenges)
• July 1: Final assessment roll
• January 15: NYC tentative assessment roll published
• March 1: NYC deadline for most exemption applications
• March 15: NYC deadline to file Tax Commission challenges