A rant on Manhattan RE tax...
So I was reading an article here on Brownstoner that led me to Sotherbys website…I did a search for Soho/Tribeca property…Now, I know RE tax is high in Manhattan but some of these listings are crazy! This one below has RE taxes of almost $2500 a month for a property thats selling for 1.8M…Is this…
So I was reading an article here on Brownstoner that led me to Sotherbys website…I did a search for Soho/Tribeca property…Now, I know RE tax is high in Manhattan but some of these listings are crazy! This one below has RE taxes of almost $2500 a month for a property thats selling for 1.8M…Is this really $2500 a month or is this per year?:
http://www.sothebyshomes.com/nyc/sales/0134047
I think the quoted tax figure on that apartment sounds about triple what it should be. My last place was a $2M joint in Chelsea, and the taxes were $11K a year.
Problem is, 6:51, those in the suburbs are taxed high property taxes even after they retire and stop making income. They pay that high property tax even if they are out of work for months or a year, not making income. And they are taxed high property taxes even after their kids leave school.
I would rather pay our NYC income tax, being freelancers with irregular income from year to year (like many people in media who live in NYC) than be saddled with HUGE property taxes that are only going up and up and up.
STAR exemptions are available for any homeowner, kids in school or not. There is an enriched exemption for seniors, as well. You can find applications on the City Finance Dept website. They exempt about $1250 of your assessed value from taxes, saving something like $150-$200 per year in property tax.
The top city personal income tax rate is about 3.85 percent, fyi.
The school tax exemption is not based on the size of the house.
it is based on not having children in a local school.
Condos also apply for this exemption.
It is called STAR.
People, NYC has an income tax. That’s on top of the state income tax. Burbs don’t. The highest tax bracket in the city is around 5%. Do a little math, and if you make a good salary, you’ll find you’re already paying more than the burb dwellers. Don’t feel sorry for them. Feel sorry for yourself, as if you live in NYC, you’re taxed like a European.
What is the “School Tax Relief” exemption? I’ve noticed there are quite a few houses in Brooklyn that have it. Is it substantial or is it negligible?
Also remember in the suburbs you’re STILL paying those very high RE taxes after your kids are done with public school.
NYC can maintain low residential real estate taxes because it has many other sources of revenue, such as personal and corporate income taxes. It also has very high taxes on commercial real estate. Unlike the rest of the state, funding of our school system is not based on property tax revenues, so the subpar schools aren’t a result of low property taxes but of a host of other problems. When you put all our taxes together, you’re probably paying about the same in total taxes as if you lived in the suburbs.
One of the impacts of low property taxes is higher home prices, that is, the savings on taxes are capitalized into the price of the house. It’s an obstacle for first time buyers who have to save up more money for their down payment.
Real Estate Taxes are the same in all 5 boroughs. For Residential property in class1, all 5 boroughs pay the same rate. Class 2 rates for condo and coops. TO say that a manhattan property has a bigger tx means the property has a greater value. All property taxes are add valorem, accoridng to value.
Remember that most older properties are capped as to the amount their assessments can increase. New buildings are also capped but begin with greater values than older properties. In order to see what the taxes are you need to tell us what the assessed and market values for that property is.