How to Lower Property Taxes in New York

Property taxes in New York are a recurring expense for homeowners, determined locally by municipalities, counties, and school districts. A homeowner’s tax bill results from local budget needs and their property’s valuation. Homeowners can seek a reduction in their tax liability through established avenues like applying for exemptions or formally challenging an assessment.

Understanding Your Property Tax Bill and Assessment

A property tax bill is based on a property’s Assessed Value (AV), which is the value placed on it by a local assessor for taxation. This is not the same as market value but is a percentage of it, based on factors like property sales data and the home’s physical attributes. The assessor determines an AV for every property in the municipality.

To ensure fairness across municipalities, the state uses an equalization rate. This rate measures the relationship between a municipality’s total assessed value and its total market value. An equalization rate of 80 means properties are assessed at 80% of their market value, helping to equitably distribute the tax burden for jurisdictions like school districts that span multiple towns.

The tax levy is the total amount of money a jurisdiction, such as a town or school district, needs to raise from property taxes to fund its budget. Once the levy is set, the tax rate is calculated by dividing the total tax levy by the total assessed value of all properties in the municipality. This rate, often expressed per $1,000 of assessed value, is then applied to a property’s assessed value to determine the final tax bill.

Available Property Tax Exemptions and Reductions

One of the most direct ways to lower a property tax bill is by applying for exemptions, which reduce a property’s assessed value. The School Tax Relief (STAR) program is a primary source of this relief. The STAR exemption is only available to homeowners who have been continuously receiving it since 2015. All other eligible homeowners, including new applicants, must register for the STAR credit, which is issued as a check or direct deposit. The Basic STAR credit is for owner-occupied, primary residences where the combined income of the owners and their spouses is $500,000 or less.

The Enhanced STAR program provides a greater benefit for the primary residences of senior citizens aged 65 or older who meet specific income requirements. For the 2025 benefit, the qualifying income limit is $107,300, based on income from the 2023 tax year. This income figure represents the combined adjusted gross income of all owners and any resident spouse. Homeowners receiving the Basic STAR exemption can apply with their local assessor to upgrade to the Enhanced version using Form RP-425-E once they meet the criteria.

The Senior Citizens Exemption offers relief to individuals 65 and over with limited incomes, reducing county, town, and school taxes. Eligibility is based on locally set income limits, and homeowners must file Form RP-467 with proof of age and income. A separate but similar exemption is available for persons with disabilities and limited incomes, with eligibility also determined locally. Applications for these exemptions must be filed with the local assessor by the required deadline.

Veterans may also qualify for several property tax exemptions. The Alternative Veterans’ Exemption is available to honorably discharged veterans who served during designated periods of war, with additional benefits for those who served in a combat zone or have a service-connected disability. The Cold War Veterans’ Exemption is for those who served during the Cold War period. To apply, a veteran must provide proof of service, such as a DD-214, to their local assessor’s office.

The Property Tax Grievance Process

If a homeowner believes their property’s assessment is incorrect, they can initiate a formal challenge through the grievance process. There are four legal grounds for a complaint in New York:

• Unequal Assessment: The property is assessed at a higher percentage of its market value than the average of other properties on the same assessment roll.
• Excessive Assessment: The assessed value is higher than the property’s actual market value.
• Unlawful Assessment: The property is exempt from taxes but has been taxed.
• Misclassification: The property is placed in the wrong class, which is an issue in municipalities with homestead and non-homestead tax rates.

A successful grievance is built on evidence. The most persuasive evidence is a selection of comparable properties, or “comps,” which are three to five similar homes in the area that have recently sold. Other evidence includes a recent appraisal, photographs of significant damage, and contractor estimates for necessary repairs, as these can demonstrate a lower market value.

The formal procedure involves filing Form RP-524, Complaint on Real Property Assessment. This document requires the homeowner to state their opinion of the property’s true market value and provide the evidence gathered to support that claim. The form must be filled out accurately with information from the tax bill and tentative assessment roll.

The completed RP-524 form must be submitted to the local assessor or the Board of Assessment Review (BAR) by Grievance Day. This date varies by municipality; for instance, many towns hold it on the fourth Tuesday in May, while the deadline is March 1 in Nassau County. Homeowners must confirm the date with their local assessor’s office. The BAR will review the complaint and may request a hearing before issuing a written decision.

Filing a Small Claims Assessment Review (SCAR) Petition

Should the Board of Assessment Review (BAR) deny a grievance, the next step is to file a Small Claims Assessment Review (SCAR) petition. This option is available to owner-occupants of one, two, or three-family homes used exclusively for residential purposes who have already gone through the grievance process. The SCAR process is an informal and less expensive alternative to a formal court proceeding.

To initiate a SCAR proceeding, the homeowner must complete the official SCAR Petition form from the New York State Unified Court System website. This form requires information from the original RP-524 grievance form and the final determination letter from the BAR. The petition must be filed within 30 days of the filing of the final assessment roll in the municipality.

The filing procedure requires filing an original and two copies of the petition with the county clerk’s office, accompanied by a $30 filing fee. Within ten days of filing, a copy of the petition must be mailed to the clerk of the assessing unit, the clerk of the local school district, and the county treasurer. A copy should also be mailed to the local assessor.

After the petition is filed and distributed, the court system will assign the case to a hearing officer, who will schedule a hearing. At this informal hearing, both the homeowner and a representative from the assessor’s office will have the opportunity to present their evidence. The hearing officer will then issue a final decision on the assessment.