Upstate NY Has Some of the Highest Property Tax Rates in the Nation

What Contributes to Upstate New York’s High Property Taxes?

  • Assessments that may be higher than they should be due to a complex and flawed assessment process.
  • Town, city, village, and school budgets that have steadily increased despite declines in population and school enrollments in many areas over past few years.

Two of the Top 5 Counties in the US with the Highest Property Tax Rates are in Upstate NY

A report by ATTOM Data Solutions indicates that two of the counties in the U.S. with the highest effective tax rate as of 2020 are in NY State:

  • Alcona County, Michigan (5.53%)
  • Allegany County, New York (3.48%)
  • Salem County, New Jersey (3.40%)
  • Oswego County, New York (3.32%)
  • Camden County, New Jersey (3.14%)

Zogby Poll Shows Taxes as Top Reason Residents Looking to Leave New York

March 2, 2022 --John Zogby Strategies, a research firm, released the second edition of its Unite NY‘s Voter Empowerment Index (VEI). The results indicate that "nearly 40 percent of New Yorkers now saying they are considering leaving the state, citing high-taxes and a broken political system as the primary reasons." Read more

top reason for looking to leave NYS

New York Has Largest Annual and Cumulative Population Decline in 2021

According to the latest Census Bureau data released December 2021, "New York had the largest annual and cumulative numeric population decline, decreasing by 319,020 (1.6%) and 365,336 (1.8%), respectively. New York’s declining population in the last year was attributed to negative domestic migration (-352,185).

You can see more details on the population changes here.

The Tax Foundation reports: "Americans were on the move in 2021, and they chose low-tax states over high-tax ones. That’s the finding of recent U.S. Census Bureau population data, along with commercial datasets released this week by U-Haul and United Van Lines. The picture painted by this population shift is a clear one of people leaving high-tax, high-cost states for lower-tax, lower-cost alternatives."

SALT Deduction Cap Hits Property Owners in the Highest Tax States the Most

In the Tax Cuts and Jobs Act of 2017, the SALT (state and local taxes) deduction was capped at $10,000. That is now the maximum deduction allowed for those who itemize deductions when filing Federal income tax returns. As a result, taxpayers in states including New York, where taxes are higher, pay higher federal tax bills. Legislation to raise the cap to $80,000 is pending in Congress as it is tied to larger spending bills. To date, no action has been taken to raise the cap.

New York State Has the Largest Overall Tax Burden

The overall tax burden is the total of income tax, property tax, and sales taxes paid. New York Residents pay 4.4% in property taxes, 4.96% in income tax, and 3.43% in sales tax.

Total tax burden: 12.79% Source: CNBC Dec 2021

Where Do People Pay the Most in Property Taxes?

According to the non-profit Tax Foundation, New York ranks 4th in the nation for state and local property tax collections per capita and 14th for property taxes paid as a percentage of owner-occupied housing value

Wallet Hub's
latest report in March 2022 shows what states are bearing the biggest property tax load. NYS has an effective real estate tax rate of 1.72%, which puts New York in 43rd place in the nation for the lowest property taxes.

Source: WalletHub

Wallet Hub Also Looks at How Property Taxes Have Changed Over Time

rankings 2010 2019 real estate tax states
Source: WalletHub

Updated March 10, 2022