New York has a reputation for being a high-tax city, but, at least when it comes to taxes on homes, the reality is considerably less than the expectation. NYC property taxes are, for many homeowners, surprisingly reasonable.
A survey by Attom Data Solutions, a real-estate data firm, shows that the city has the lowest tax rates on single-family homes in the New York–New Jersey–Connecticut tri-state area. A $750,000 home in Queens, for instance, might have an annual property tax bill as low as $5,900. A house of equal value in Westchester County may carry a tax bill of more than $17,000, while the owner of a comparable home in New Jersey’s Essex County might pay almost $19,000.
The city’s average effective tax rate — the percentage of the market value that a homeowner pays in taxes — is just 0.9%, which is higher than all Proposition 13-bound California cities, but well below Chicago (2.1%), Houston (2.26%), Philadelphia (1.15%), and Boston (1.22%). The statewide New York average is 1.68%.
But don’t rest too easily. While New York City famously under-taxes single-family homes, it is well known for overtaxing large residential buildings. That Queens single-family homeowner gets a break, but the owner of a $750,000 condo in Manhattan could be shelling out as much as $19,000 in property taxes. (Here’s how to estimate your property taxes).
For property-tax purposes, there are four broad property classifications, only two of which are of concern to most homeowners: Class 1 properties are one-to-three-family homes. Class 2 properties are rental buildings with four or more units, co-ops, and condominiums. The other tax classes cover utilities, commercial buildings, and other non-residential properties.
Manhattan 1-3BRs Under $1.5M Article continues below
