When it comes to the big decision of purchasing a home, there is more to consider than just the monthly mortgage rate, the area, surrounding schools for those that have a family, etc. Property tax is a major influencer for many that are getting ready to invest in a new home. As a matter of fact, property taxes are often the second highest expense for a home owner, just behind the mortgage itself.
Property taxes in New York State vs. New York City have serious variables. Some of the counties that are outside of New York City itself have astronomical property tax rates, often nearly double the national rate at 2.5%, whereas the average tax rate in New York City is 0.72%. (Again this will vary per property type, classification, income and area.) This is actually less than half of New York State as a whole, which has a tax rate of 1.5%.
What Are New York Tax Exemptions and Tax Classifications?
There are quite a few property tax exemptions available for homeowners living in New York City, so when these are taken into consideration, property tax rates become even lower. For example, the STAR (School Tax Relief) Exemption, the Veterans Exemption, and the Disabled Homeowners Exemption are just a few exemptions that are offered to New York City homeowner residents that provide property tax relief.
The exemptions lower the assessed value of the property, which in turn lowers the amount of property taxes that will be paid as a whole. Also, the class of property will greatly affect the rate of property taxes paid. A residential property, which is essentially one-to three-family homes will fall under class one. Let’s explore in particular the borough of Brooklyn and how the property taxes there compare when put up against other major cities around the nation.
Brooklyn (Kings County) New York
Brooklyn (Kings County) property tax rate stands at 0.6%, which is pretty low overall and well below the national average. However, that rate is dependent on being a residential, or class one property vs. commercial and apartment buildings, which is taxed at a rate of 45%. Thus, homeowners pay a small percentage of property taxes versus other types of property owners in New York. This rate can also vary based on the current assessed value of the property, current assessment rate, income, and the available tax exemptions and abatements available on the property.
What Cities Around the Nation Have Higher Property Tax Rates?
Bridgeport, Connecticut
Bridgeport Connecticut, once almost a bankrupt city, has seen a steady hike in property taxes and sits at a rate of about 4.55%, which is well above the national average and has been so for quite a while.
Des Moines, Iowa
Homeowners in Des Moines are under the pressure of possible, further property tax increases. Â Their current property tax rate sits at 4% and can grow considerably higher. To counteract further property tax hikes, there are some proposals being considered, which include rolling out a flat income tax rate of 3.5%, assessing all property based on market, versus the tax assessment value, or implementing a statewide property tax.
Providence, Rhode Island
As with many highly populated cities and areas, a majority of Providence’s tax revenue comes from property owned there. As a result, Providence residential homeowners are looking at an average of 3.59% for property tax.
Newark, New Jersey
As with a lot of the property owned in New Jersey, Newark homeowners are paying an astounding 3.12% property tax rate, which is double their neighbor that is notorious for extremely high real estate pricing- New York.
Manchester, New Hampshire
Manchester is a town that relies highly on property taxes for school funding. To balance out what may be otherwise considered as an unfair property tax law, New Hampshire’s other taxes (sales, income, etc.) are extremely low when compared to the rest of the nation. Their property tax rate sits at 3.07%.
What Cities Around the Nation Have Lower and Mid-Rate Property Taxes?
The lowest property tax rates are seen in the areas that are the least densely populated, many of which are located in the southeast and often have very low income per capita. You may have noticed that the highest property tax rates, which are quoted above, are located in the northeast. Compared to these cities, Brooklyn fares well in falling below both the national, as well as average tax rates for homeowners located in nearby cities and townships. Here, we are exploring major cities only as compared to Brooklyn, New York, so the least densely populated cities – which fall into the lowest property tax categories – will not be noted.
San Francisco, California
Although property prices in San Francisco can be very high for homeowners, the property tax has remained fairly stable at 1.14%.
Los Angeles, California
Again, where the property and real estate costs can be through the roof, as well as the cost of living, surprisingly, property tax rates in Los Angeles sit at 1.12%, which is still under the national average.
Austin, Texas
Homeowners in Austin can look at rates for property tax that can vary between 1.8 and 3.3%, which is dependent upon the home’s assessed value.
Atlanta, Georgia
Atlanta property tax rates are currently 1.14%. While this rate is under the national average, the rates vary by the different counties that reside inside of Atlanta, some of which do increase property taxes to rates above the national average.
Tucson, ArizonaÂ
Tucson rounds out the list at 1.02% for property taxes, although there may be an increase in this rate, according to proposed tax law changes over the next couple of years.
 2 Point Highlight
Brooklyn (Kings County) property tax rate stands at 0.6%, which is pretty low overall and well below the national average.
Compared to these cities, Brooklyn fares well in falling below both the national as well as average tax rates for homeowners located in nearby cities and townships
