Tax burdens can be downright onerous depending on which state you call home. In fact, New York State is considered by the Tax Foundation to be the highest taxing state in the country at 12.7% of income. This tax figure includes local taxes, sales tax, income tax, education taxes and, of course, property taxes. However, if you are just considering property taxes, there are two different stories in the state of New York: one for those who live in New York City and one for those who live in the rest of the state. You might be surprised to learn who actually pays much higher property taxes.

Average Property Taxes

Calculating the average property tax for any state can be done different ways. According to WalletHub’s 2018’s Property Taxes by State report, the average property tax on the national median home price of $184,700 is $2,197. New York has some of the highest median values for homes in the country with the average median home in the state in 2018 valued at $286,300. The actual median property taxes paid based on that value according to the study were $4,738 because of the much higher home values in the state. This places New York fourth overall, as far as total property taxes paid. New Jersey topped the list at $7,601 total property taxes paid, followed by Connecticut ($5,443) and New Hampshire ($5,241.)

SmartAsset’s Property Tax Calculator by State offers a different perspective, stating New York State has an average property tax rate of 1.65% with a tax of $4,125 on the median assessed home value of $250,000 in the state. Yet, the average property tax paid is $4,051. It can get more confusing if you compare New York City to the rest of the state, as there are startling differences.

New York City’s average effective property tax rate is just 0.80%, which is less than half of the statewide average of 1.65%, according to SmartAsset. Also, there are counties in the state that pay over 2.5%, more than doubling the nationwide average effective tax rate. Homeowners in New York City pay lower tax rates than owners of commercial properties, condos or apartments. New York City also has a number of tax reductions or exemptions that may not be available in many New York counties, including exemptions for senior citizens, the disabled and veterans, and there is the STAR reduction for homeowners in a one- to three-family home.

How This State Compares to the National Average

The national effective tax rate average, according to SmartAsset, is 1.211%, while New York State’s average is 1.578%, a 30% margin over the national average. However, city dwellers in NYC pay almost 41% less than the national average.

Unfortunately, there are still many counties in New York State that pay the highest national property taxes, according to the Tax Foundation, which lists nine of the top 10 property tax rate counties in New York State. The most expensive county for property taxes in the nation is Orleans County, which pays 3.46%.

How This State’s Tax Compares to Neighboring States

According to the Tax Foundation’s 2016 “Mean Effective Property Tax Rates on Owner-Occupied Housing” Map, New York State ranks 14th at 1.38%, while its neighboring states rank in the following order: New Jersey is number one at 2.11%; Connecticut is ninth at 1.53%; Rhode Island and Pennsylvania are tied at 10th at 1.46% and Massachusetts is 18th at 1.11%.

Part of the reason why New York is not ranked higher in terms of property tax rates is the state’s ability to reap the rewards of other tax structures that limit reliance on it. Sales tax income from tourists, tourist taxes on hotel rooms, and industry and commercial taxes in the state make lower property tax rates possible.

Pennsylvania Property Tax Guide

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