If you’re a New York property owner, are you aware of where all that money goes when you pay your tax bill? Understanding the breakdown of your tax bill helps you connect the money to the services provided. Once you know where your tax dollars go, you can hold your elected officials accountable, you have a better grasp on ballot propositions, and you can make educated decisions when voting for changes in funding. Finally, good comprehension of your tax bill can allow you to determine if you are getting value for the services. It may also serve as a deciding factor when you are looking at potential home buying options.
An exact breakdown of the tax money varies by county, city, town, or school district. However, property tax money typically goes towards the following:
- Public Schools
- Local Government Operations
- County Services
- Special Districts (libraries, garbage, water, etc.)
- Public Safety (police, fire, etc.)
How Is Your Tax Bill Calculated
The property tax bill is the sum of several line items. Here is a step-by-step look into how your property tax bill is calculated.
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Each local authority (school district, county, town or city, and any special districts) creates a budget. That budget decides how much money it needs to collect in property taxes, which is called the levy.
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Tax rate = levy ÷ total taxable assessed value for that authority. It’s shown as dollars per $1,000 of value.
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The assessor decides on your home’s assessed value. Any exemptions you qualify for (like STAR or the veteran’s exemption) are subtracted, leaving your taxable value.
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Line item = authority’s rate × (taxable assessed value ÷ 1,000). Sum the line items to get your property tax bill.
Example:
The following is an example using the steps above. Assessed value: $450,000
STAR Exemption (applies only to school tax): $30,000
Taxable value for school tax: $420,000
Taxable value for other taxing entities: $450,000
How your taxes are calculated:
| Taxing Authority | % of Bill | Tax Rate (per $1,000) | Taxable Value Factor | Annual Amount |
|---|---|---|---|---|
| School District | 65% | $14.95 | 420 × 14.95 = 6,279.00 | $6,279.00 |
| Town Government | 15% | $3.45 | 450 × 3.45 = 1,552.50 | $1,552.50 |
| Suffolk County | 10% | $2.30 | 450 × 2.30 = 1,035.00 | $1,035.00 |
| Special Districts | 8% | $1.85 | 450 × 1.85 = 828.00 | $828.00 |
| Other Charges/Fees | 2% | $0.46 | 450 × 0.46 = 207.00 | $207.00 |
| TOTAL | 100% | $22.32 | Adjusted Combined Rate | $9,901.50 |
It is important to note that while the tax rate might be the same as your neighbor, your property tax bill may be higher or lower depending on your property’s taxable value and exemptions. Or you might have the same assessed value as a friend, but if you live in a different town, some of your local township or village tax rates may vary, resulting in a different tax bill amount.
The breakdown of property tax dollars can vary depending on the county, but the majority of property tax revenue supports public schools and essential services and programs. To be well-informed as a property owner in New York, make sure to review your tax bill or even local county budget reports for specifics in breakdown in your designated county.
While you may not have much say in setting property tax rates, beyond voting on ballot measures or choosing the town where you buy your home, you do still have some control over your own tax bill. As a homeowner, you have the right to challenge your property’s assessed value if you believe it is too high. This process, called filing a grievance, is your chance to appeal and possibly lower your bill so you are paying only your fair share.
Areas We Serve in NY
In New York, O’Connor currently offers commercial and residential property tax services in Nassau, Suffolk, and Westchester counties. These three counties can vary on how the property tax revenue is spent. In Nassau County, property tax dollars mostly go towards public schools. In Suffolk County, tax dollars go towards a mix of education, county operations, and public safety. For Westchester County, tax dollars heavily support education, along with other public services.
How Can O’Connor Help?
For over 50 years, O’Connor has provided expertise in real estate. We serve both commercial and residential property owners in Nassau, Suffolk, and Westchester counties. Our New York office, led by Frank Grampone, supports clients through the complexities of New York’s tax system with professional and expert insight.
Navigating property taxes on your own can be challenging due to the many variables including understanding your tax bill, evaluating your assessment for accuracy, or making sure your exemptions are applied correctly. O’Connor has consistently delivered results in property tax appeals by following proven strategies. With access to an extensive proprietary database and years of experience, our team builds persuasive cases designed to achieve maximum tax reductions for our clients.
