Effective rate, median annual bill, homestead exemption, and assessment cap rules under N.Y. RPTL § 425
Median bill is the actual ACS 2022 figure for owner-occupied housing units in New York. Your specific bill will vary by county and municipality — local mill rates can swing the effective rate by 30%+ within a single state.
The effective property tax rate is the single most important fixed operating expense for buy-and-hold rental property. At 1.40%, every $100,000 of New York property value generates approximately $1,400 in annual property tax — money that comes off the top before any other expense, debt service, or vacancy reserve.
New York's effective rate of 1.40% is roughly in line with the U.S. median (~1.02%). Within the state, however, county and municipal mill rates can vary widely — always verify the actual bill from the county assessor before underwriting.
STAR (School Tax Relief): Basic $30,000 income < $500k; Enhanced for 65+ with income < $93,200 exempts ~$77,700 of school taxes.
The exemption is granted under N.Y. RPTL § 425. To claim it, owner-occupants must typically file an application with the county assessor (most states require filing once, with renewal triggered only by change of ownership or use). Failure to file the application means full taxation at the non-homestead rate.
The effective property tax rate in New York is 1.40% of fair market value, according to Tax Foundation analysis of U.S. Census Bureau ACS 2022 data published in 2024. The median New York homeowner pays $6,303 annually in property taxes. That is approximately 137% of the U.S. national median effective rate of 1.02%.
STAR (School Tax Relief): Basic $30,000 income < $500k; Enhanced for 65+ with income < $93,200 exempts ~$77,700 of school taxes. Statutory authority: N.Y. RPTL § 425.
Generally no. Homestead exemptions, primary-residence assessment caps, and senior/disabled credits in New York apply only to owner-occupied primary residences. Rental properties are typically taxed at full assessed value with no cap on annual reassessment growth, unlike owner-occupied homes which benefit from the 2% annual levy cap.
Local assessors determine fair market value (or taxable value, depending on the state). The taxable value is then multiplied by the local millage rate set by counties, municipalities, school districts, and special districts. New York's effective rate of 1.40% reflects the combined burden of all local taxing jurisdictions on the underlying market value of the property.
Effective rate source: Tax Foundation analysis of Census ACS 2022 (published 2024). Statutory citation: N.Y. RPTL § 425. Last updated April 29, 2026. For informational purposes only — not tax or legal advice. Consult a CPA or tax attorney for your specific situation.
