Taxes in Upstate NY Have Some of the Highest Effective Tax Rates in the Nation
Why are People Leaving New York State?
From Niagara Falls to the Big Apple, New York State offers a long list of reasons that should make it a desirable place to live. So with all of its unique resources, why are people leaving New York State? For some it’s snow and cold or better jobs, for many others it’s the high cost of living and high property taxes, which are some of the highest in the nation relative to property value. For some, property taxes may be higher than combined principal and interest mortgage payments. Appreciation may also be stagnant compared to that in other parts of the nation.
According to the Empire Center:
“Because upstate lost slightly more people than downstate gained during the latest 12-month period, New York’s statewide population declined for the first time in a decade in 2015-16. …New York lost another 191,367 residents to other states during the year ending last July 1 (2015), and its population declined for the first time in a decade, according to the U.S. Census Bureau’s annual population estimates.”
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 the past few years.
3 of the Top 5 Cities with Some of the Highest Effective Tax Rates in the Nation are in Upstate NY
According to REALTOR® Magazine,“Among the 217 metro areas with populations of at least 200,000, ATTOM Data Solutions reported these areas (three of which are in Upstate NY) as having the highest effective property tax (the average annual property tax expressed as a percentage of the average estimated market value of homes in a geographic area) rates:
- Binghamton, N.Y.: 3.10 percent
- Rochester, N.Y.: 2.99 percent
- Rockford, Ill.: 2.96 percent
- Atlantic City, N.J.: 2.77 percent
- Syracuse, N.Y.: 2.67 percent