New York property taxes

[Justin Stewart]

Happy Friday everyone!! Quick question, does NY have any homestead exemption in property taxes? I'm analyzing deals and trying to get an accurate estimate of yearly taxes to be paid.

In Florida we have a homestead exemption, so it is cheaper for owner occupant vs investors owning and renting out a property. Thank you in advance!

[Richard Rozo]

@Justin Stewart I’m not an accountant but I’m going to say no. I am a home owner in NY.

[Frank Chin]

@Justin Stewart

In NY, it's called "STAR" exemption. See: STAR exemption

[Jacqueline Vasquez]

@Frank Chin

Yes but It has to be owner occupied

[Frank Chin]

Originally posted by @Jacqueline Vasquez:

@Frank Chin

Yes but It has to be owner occupied

Exactly. OP wanted to know if NY state grant exemption to homeowners, as they do in Florida, thereby reducing their taxes, and if so, by how much. That is of particular interest to investors since the property they plan to purchase is NOO will be taxed higher, and they need to know by how much.

The other issue is purchase of property can result in current assessment anyway since property taxes are subject to an annual percentage cap. So property taxes will be adjusted and the difference could be great is the current owner owned the property for a while.

In the final analysis, the taxes will invariably go up.

[Joe Splitrock]

@Justin Stewart well lets just say NY is the highest taxed state in the country and FL is near the lowest. But you have that great New York weather, so it makes up for it. Oh wait, that is Florida too, haha.

[Justin Stewart]

@Frank Chin exactly, I've seen where people factor in taxes where it's owner occupied and then it eats into cash flow when the exemption is removed!!! Don't need any surprises due to lack of diligence on my part.

[Justin Stewart]

@Joe Splitrock yea only good thing about the location in NY is cash flow is phenomenal as long as you pay attention, appreciation not so much.

But I will stay living in Florida for the weather and low taxes!!

[Justin Stewart]

@Jacqueline Vasquez thank you!! Same for Florida

[Alexander Szikla]

NYC has its own unique tax intricacies like J-51 tax abatements for example. 

Although income taxes are high in NYC and properties are expensive, property taxes are quite low in comparison to asset value. Especially in the outerboroughs on multifamilies. However, transfer taxes can be quite expensive upon purchase / sale.