While the holiday season has come to an end, the property tax season in New York is just beginning. Although that may be one of the worst tradeoffs imaginable, it is important to start the new year by being prepared. Your property is the most important investment that you own, and staying on top of taxes is vital to ensure that you and your home or business remain financially secure for years to come. New York has some of the highest property taxes in the nation, so it always pays to be informed and ready when the tax bills come.
From new exemptions to new federal laws, there were many changes in 2025 when it comes to property taxes in New York. If you wish to utilize these new changes, it is best to research them and be prepared for the tax season ahead. In this article, we will go over the basics that you need, and explain the changes that will benefit you now and in the future.
Starting with Basic Preparations for Tax Season
The New Year is a great time to get back to basics, and the same can be said for tax preparedness. Much like a New Year’s resolution, starting 2026 with a solid plan goes a long way toward having a fantastic year. We have previously covered this in-depth, so we will provide a brief primer. First, you want to find all of the key deadlines that you need to know. This includes when your taxes are due, your deadline to file grievances on your assessment, payment plan schedules, and more. By staying abreast of these dates, you can get everything paid on time and avoid adding penalties and interest to your tax bill. Check with your county to verify what your deadlines are.
Mind your deductions and exemptions, as both are key to managing your costs. The deadline for applying for exemptions is typically between January and March, so review your assessment to see if any are missing before March rolls around. Reviewing your assessment in general is a great first step, as it also allows you to find any basic errors. You would be surprised how many assessments list incorrect square footage or property class, or add things like a garage that do not exist. A quick review can help you spot these errors, allowing you to file a grievance before the deadline, which will vary depending on where your property is located, but the deadline for filing a Nassau county grievance is March 2, 2026.
Senior Homeowners Land Expanded Exemptions
Like most states, the largest contributor to a tax bill is usually the local school district. Taxpayers of all ages can get a break on these taxes by utilizing the School Tax Relief Program (STAR). Originally a standard homestead exemption, the STAR has morphed over time. The exemption aspect is still available, cutting $30,000 from a home’s taxable value from the rolls. However, this is not available to new homeowners. Instead, they get refunds to help offset costs, usually between $250 and $500. If you were grandfathered into the exemption, you can switch to receiving the check, but you cannot go back to the exemption. Keeping your STAR exemption encourages long-term ownership.
For seniors, 2025 saw a new boost added. Seniors have always had access to the Enhanced STAR program, which removed $85,000 from the taxable value of a home, or $800 to $1,500 through a credit. This was often paired with a senior citizen exemption, which exempted up to 50% of a home’s taxable value, giving double savings to older residents. However, there was an income cap of $50,000. A new law passed in 2025 added an enhanced senior exemption option, the first increase seen in New York in decades. This boosts the exemption to 65%, though it is up to the local taxing entities if this will be used or not. With Enhanced STAR and a senior citizen exemption, you may avoid paying school taxes entirely.
Expanded SALT Deductions Turn Property Taxes into Federal Tax Breaks
One of the biggest pieces of legislation passed in 2025 to benefit New York homeowners came at the federal level. As part of the One Big Beautiful Bill, the state and local tax (SALT) deduction was enhanced dramatically. To simplify the law, it allows certain homeowners to reduce their federal income tax burden by applying what they paid in property taxes. In the past, the cap for deductions was set at $10,000. Thanks to the 2025 changes, the SALT exemption cap has grown to $40,000. This opens the door to millions more homeowners when it comes to maximizing federal savings.
While a boon for New York, the SALT changes also help high-tax states like Illinois and Texas. The new changes help level the playing field with low-tax states as well. Before the changes, over 25% of New Yorkers did not get the full SALT benefit. This has been reduced to just 2.5%. To qualify for the full $40,000, you must have an income lower than $500,000. If you are filing jointly, this income cap grows to $1 million. Married couples filing separately can write off $20,000 each. Combined with sales tax, it is possible to save a good deal more than the standard deduction.
The Tentative Assessment Roll Previews Future Issues
One aspect of property taxes that New York has over most other states is the tentative assessment roll. This is released in January, and previews the upcoming year. For example, the tentative roll released in 2026 will preview the assessments for the 2027-2028 tax year. This is essentially a more comprenhensive assessment review. Because you are looking so far ahead into the future, you can use the tentative roll to spot issues earlier than ever before, allowing you more time to file a grievance, along with affording you the opportunity to build more evidence needed for this appeal.
The tentative roll allows you to look up both your assessment preview and that of others. It also allows you to compare your fair market value to home sales in your area. If you find a large discrepancy, that can be valid grounds for a grievance. You can also use this preview to zero in on any incorrect pedigree information. This includes the number of rooms, property class, or external structures, like garages or decks. Also, if you believe that your assessed value is incorrect, that is also grounds for a future grievance. You will want to put together evidence to prove your claim, such as comparative home sales or comparisons with similar and neighboring properties.
O’Connor is Here to Help in 2026 and Beyond
New York property taxes are full of complexity, while also being some of the highest in the nation. With so much on the line, it is often to your advantage to join with a tax specialist who knows how the state works. We at O’Connor have been helping with property tax issues for over 50 years. Originally founded in Texas, we have spread all over the nation, including opening a branch office in New York to take care of local cases. With regional expertise, backed by a national brand, we can bring the best of both worlds to your property tax needs.
If you are thinking about launching a grievance to lower your property taxes, we are here to help you the whole way. We will help gather evidence, put together sales comparisons, analyze your assessment, and coordinate with attorneys if needed. We can also represent you at hearings and appeals, giving you an expert to spearhead your grievance. There is no upfront cost, and you will only be charged a portion of your winnings if we are able to lower your taxes. Currently, we serve residential property cases in Nassau, Suffolk, and Westchester counties. Reach out to us today and gain a partner for 2026 and for the years to follow.
