Introduction

To use this calculator and determine approximate property tax on a specific one to three family home, owner will need to know their Adjusted Gross Income, which can be found on the first page of one’s federal tax return, to be able to enter it in the form here:

https://nyc.tidalforce.org/newtax

This site permits the calculation of approximate proposed new tax burden on specific one to three family homes (footnote 6) according to the recommendations of NYC's Property Tax Reform Commission as set forth in its final Report (final-report.pdf (nyc.gov)

Under the new framework proposed in the Report, a one to three family property's current Market Value (MV) would replace what is now known as the Assessment, and the 6% tax cap would be removed. Property tax for one to three family homes would be calculated by multiplying (number of hundreds of dollars in MV x .814 tax rate). The new property tax would be phased in over a five year period.

Property Tax Exemptions: The available Exemptions, per the Report (depending on age, primary residence, and Adjusted Gross Income of the owner), would be a Homestead Exemption (Footnote one), Senior Citizen Homeowners’ Exemption (Footnote two), STAR Exemption (Footnote Three), ESTAR Exemption (Footnote four), and Circuit Breaker Exemption (Footnote five). Exemptions can lower Property Tax, by reducing either the MV or the total annual Property Tax burden initially calculated based solely on new .814 tax rate and current MV. Qualifying for these exemptions would depend on (a) whether the property was the owner's primary residence, and (b) the owner's Adjusted Gross Income ("AGI"), which can be found on the first page of owner's Federal Tax Return.

The calculations that follow will show what the property tax on the specific one to three family house at the address entered would be at the end of the five year phase-in period, assuming the same owner, with the same AGI, with the same exemptions and MV as they have today (whether SCHE, STAR, or ESTAR, plus the Circuit Breaker Exemption (if applicable based on AGI) proposed by the Commission.

To use this calculator and determine approximate property tax on a specific one to three family home, owner will need to know their Adjusted Gross Income, which can be found on the first page of one’s federal tax return, to be able to enter it in the form here:

https://nyc.tidalforce.org/newtax


FOOTNOTES

  1. Homestead Exemption: Under the new framework proposed in the Report, If the owner has an AGI of less than $375,000 and the property is owner’s primary residence, then owner is entitled to a Homestead Exemption reducing Market Value by 20%. Higher incomes receive lower percentage reduction (see page 43, Report) with the percentage of reduction phased out to zero for incomes over $500,000.

Current homeowner exemptions that would be preserved under the new framework (2-4 below):

  1. Senior Citizen Homeowners’ Exemption (SCHE): To qualify for his exemption, the owner must be over 65 and have a total combined AGI (wit spouse or co-owner) of not more than $58,399. Income includes, but is not limited to, Social Security, retirement benefits, interest, dividends, IRA earnings, capital gains, net rental income, salary or wages, and net income from self-employment. An owner or owners must apply to receive this exemption and provide proof of income. An owner may apply here:

Senior Citizen Homeowners' Exemption (SCHE) (nyc.gov) (Note: a footnote on page 5 of the Report states that SCHE Exemption, as well as SCRIE, DRIE, Veterans, Disabled Homeowner, and several other current personal exemption programs, some not noted in this site, will remain applicable under the proposed new framework.)

  1. STAR Exemption: The STAR Exemption is available to primary resident homeowners with annual AGI of $250,000 or less. This benefit produces tax savings of approximately $300 annually. An owner must register for this exemption: STAR resource center (ny.gov) STAR eligibility (ny.gov)

  1. ESTAR, or Enhanced STAR exemption; ESTAR is available to primary resident owners 65 and over with an annual income of $92,000 or less. This benefit produces tax savings of approximately $650 annually. An owner must apply for this exemption: STAR eligibility (ny.gov)


  1. Circuit Breaker: Finally, under the new framework proposed in the Report, if the owner has an AGI of less than $90,550, then after all the other exemptions set forth above to which they may be entitled have been applied, they may be entitled to an additional Circuit Breaker benefit, further reducing the total property tax due, based on a sliding scale depending on their AGI. See page 45 of the Report for the sliding scale benefit and how it is calculated.

  1. This site not useful for condos and coops: The reason that this site can ONLY approximate total final tax burdens on one to three family homes is that under the framework suggested in the Report, before moving condos, coops, and four to ten family rental buildings from Class Two into Class One, the City would revalue all the latter properties. As of the date of this writing, the recommendations in the Report have not yet been adopted by the City of New York, and there is no data available on how the City would revalue those properties, or specific new MVs for each. An article addressing the absence of data relating to this aspect of the proposal may be found here: New York City Property Tax Blueprint an Incomplete Solution | Insights | Holland & Knight (hklaw.com)