Why your property tax goes up after you buy a home in New York

The listing shows the seller’s bill

The tax figure on a listing is what the current owner pays. That bill can include exemptions that belong to the owner, not the house: the STAR school tax exemption, the senior citizens exemption, veterans exemptions and disability exemptions.

Those exemptions end when the home changes hands. A buyer only gets them by qualifying and applying, so the first full bill in the buyer’s name is often higher than the one in the listing, sometimes by thousands of dollars.

The assessment usually stays the same

New York assessors do not raise a home’s assessment just because it sold. The assessment changes when the town or city reassesses, when the home is improved, or after a successful grievance. So the price you pay does not set your tax bill directly.

That also means two similar homes on the same street can pay very different taxes if one was assessed long ago and the town has not reassessed since.

STAR is a check now, not a lower bill

Since 2016, new homeowners in New York cannot get the STAR exemption on the tax bill. Owners who have had the exemption since 2015 can keep it on the same home. A new buyer registers with the NYS Department of Taxation and Finance for the STAR credit instead, which is paid as a check toward the school tax.

Special districts are extra

Fire, water, sewer, lighting and other special districts are charged on top of the county, town, school and village taxes, and they depend on the street. Check which districts a home is in before you budget.

What to do before you make an offer

Look up the address and compare the seller’s bill with the bill for a new owner. LumeInsight removes the current owner’s personal exemptions and shows the difference, line by line, from the county’s published rates and assessment roll.

Questions

Do property taxes go up when a house is sold in New York?

The assessment usually does not change because of the sale, but the seller’s personal exemptions (STAR, senior, veterans, disability) end, so the buyer’s bill is often higher than the seller’s.

Can I keep the seller’s STAR exemption?

No. Exemptions belong to the owner. New homeowners get STAR as a credit check from New York State after registering with the Department of Taxation and Finance.