Property Tax Rate Comparison: Why You Pay More Than Your Neighbor
Property taxes can be a tricky subject. What's the difference between your property taxes and your neighbors property taxes? Why are my property taxes higher than my neighbors? Property taxes differ from person to person, and many factors come into play when determining them. These factors include:
How Square Footage Affects Your Property Taxes
How property taxes work is that they are calculated based on the assessed value of your home and the mileage rate for the area you live in. Typically, houses with larger square footage and cost more will have to pay more in property taxes.
Differences in Property Tax Assessments
Another reason for the difference in property taxes is due to the assessment. If you live in a newer house, chances are that your home was assessed at a higher value than your neighbor's. Older homes may be, on average, lower-valued, but this is not always the case as well.
How Local County Policies and Tax Rates Vary
Different counties will assess tax rates differently based on their policies. Property tax rates vary by county, school district, type of property (residential vs. commercial), and the type of service provided. Property tax rates also change when local budgets do not have enough revenue to provide services or maintain public infrastructure such as roads, bridges, schools, etc., resulting in varying property taxes.
Home Improvements and Property Additions
That's right — anything from a pool to higher fences or even an extension on your property could result in higher property taxes. So if your humble abode has more amenities than your neighbors, you're probably going to have higher taxes.
Contact Us for Property Tax Reductions on Long Island
Here at P.T.R.C., Inc. we are determined to help our clients pay the lowest amount of property tax as required by law. Contact us today to see how we can help you: info@ptrc.com
FAQ About Property Tax Comparison
How do I compare my property taxes to my neighbors’?
Compare assessed values, not tax bills, because exemptions can make a neighbor’s bill lower even when their assessment is similar. Nassau County and Suffolk town assessors publish assessment information you can look up. Focus on homes similar to yours in size, age, lot size, and features.
Why would a similar home on my street pay less in property taxes?
The most common reasons are a lower assessed value, exemptions like STAR or senior citizen exemptions, or differences in recorded features such as bathrooms, finished space, or a garage. Sometimes the difference comes from an error in your property record.
Do exemptions affect a property tax comparison?
Yes. Exemptions reduce the taxable value of a home, so two homes with the same assessment can have very different bills. Before assuming you’re overpaying, check whether your neighbor receives an exemption you don’t.
What should I check if my assessment is higher than similar homes?
Review your property record for errors in square footage, bedroom and bathroom count, lot size, and features like pools or garages. Mistakes in these records are a common cause of over-assessment.
Is paying more than comparable homes grounds for a grievance?
Yes. Under New York State law, an assessment that is higher than those of comparable properties can be challenged as an unequal assessment. Recent sales and assessments of similar homes are the main evidence in a grievance.
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