CT vs NY Property Taxes: A Homebuyer Guide

Thinking about a move that puts Connecticut and Westchester County, NY side by side on your list? Property taxes can be the hidden swing factor in your monthly payment and your approval amount. If you understand how each state assesses property, bills you, and handles exemptions like New York’s STAR, you can compare homes with confidence and avoid surprises at closing. In this guide, you’ll learn how taxes are calculated, the key CT vs NY differences, how escrow affects cash flow, and a simple worksheet to build your budget. Let’s dive in.

How property taxes work

Assessments and values

In both Connecticut and New York, local assessors determine an assessed value for each property. That value is intended to reflect market value, though revaluation timing and methods vary by town. Since assessments can change when towns revalue, the timing on each side of the border matters.

Your annual tax bill is based on this assessed value multiplied by the local tax rate. Some places show the rate as mills, which is tax per $1,000 of assessed value. The math is simple, but the inputs come from several local entities.

Tax rates and bills

A typical bill includes town or city taxes, school district taxes, county taxes, and sometimes special districts like fire or library. Municipalities set billing schedules that can be annual, semiannual, or quarterly. If you are new to New York’s system, the school district portion is often the largest component in Westchester.

For general background on how New York property taxes work, review the New York State Tax Department’s property tax resources. You can start with the state’s overview of property taxes at the NYS Department of Taxation and Finance property tax page.

Escrow and payments

Most lenders collect property taxes through an escrow account. At closing, you typically deposit an initial cushion. After that, your monthly payment includes one‑twelfth of the annual taxes and insurance. Escrow rules vary by lender, so confirm the cushion they require and how they handle billing cycles.

Key differences: CT vs NY

Who sets taxes and assessments

• Connecticut: Town and city assessors handle assessments. There is no county property tax in many parts of Connecticut. Towns set their own mill rates and revaluation schedules. For guidance on mill rates and assessment policies, see the Connecticut Office of Policy and Management.
• New York (Westchester County): Assessments are also local, but county and school district taxes are distinct and often significant. Westchester coordinates certain assessment functions and equalization information used to allocate school tax burdens.

School taxes and STAR in New York

New York’s STAR program can reduce the school tax on an owner‑occupied primary residence if you qualify. There are Basic and Enhanced benefits with different eligibility requirements. Program details, enrollment, and income limits can change, so review the latest rules on the STAR program page. Connecticut does not have a STAR equivalent, though towns may offer their own exemptions and credits.

Exemptions and credits

Both states offer exemptions or credits that can lower your bill, but they differ in type and administration.

• Connecticut: Municipal programs may include elderly or disabled relief, freeze programs, and veterans exemptions. The state also offers credits that interact with property taxes. Check the Connecticut Department of Revenue Services and your town assessor for current rules.
• New York: In addition to STAR, there are senior, veterans, and disabled homeowner exemptions, administered locally with state guidance. The exact benefit can reduce assessed value or appear as a credit on your bill.

Eligibility, income caps, application deadlines, and whether the benefit reduces assessed value or the bill itself vary by program. Always confirm details with the local assessor’s office.

Revaluations and risk

Revaluation schedules differ by town. A community due for revaluation could see assessed values, and therefore tax bills, shift soon after you buy. Ask when the last revaluation occurred and whether one is scheduled. In Westchester, you can explore property information and assessment data using the county’s GIS tools at the Westchester County property lookup.

Billing cadence and penalties

Billing cycles and late‑payment penalties differ by municipality. If you budget with escrow, the billing cadence still affects your cash flow at closing because of prorations and the initial escrow cushion. Align your budget with the town’s actual billing schedule.

Transfer taxes at closing

Beyond ongoing property taxes, plan for transfer taxes and recording costs at closing.

• New York and Westchester County: There are state transfer taxes and, in many cases, county or municipal transfer charges. For county‑level information and links to finance departments, start at the Westchester County government site.
• Connecticut: The state imposes a real estate conveyance tax, and some municipalities add local charges. Review current rules and rates with the Connecticut Department of Revenue Services, and confirm recording fees with the town clerk.

These items can change your upfront cash needs, so include them in your closing estimate.

Build your monthly budget

Simple formula

• Annual property tax = Assessed value × Tax rate (or assessed value × mills ÷ 1,000)
• Monthly property tax = Annual property tax ÷ 12

Then add homeowners insurance, HOA or condo fees, utilities, and a maintenance reserve to see your full monthly housing cost. If your lender escrows taxes and insurance, your monthly mortgage payment will include those amounts.

Worksheet inputs

Gather these inputs for each town you are comparing:

• Purchase price and the assessed value for the property
• Combined current tax rate or mill rate across town, school, county, and special districts
• Known exemptions or credits you may qualify for, including New York’s STAR
• Homeowners insurance estimate
• HOA or condo fees, if any
• Estimated mortgage principal and interest

Complete the worksheet in this order:

1. Assessed value. If the assessor uses an assessment ratio, multiply purchase price by that ratio. Otherwise, use the assessor’s value.
2. Annual property tax. Multiply assessed value by the total rate or convert mills to a percentage and multiply.
3. Apply exemptions or credits to estimate your net annual tax.
4. Monthly property tax. Divide the net annual tax by 12.
5. Monthly housing cost excluding mortgage. Add monthly tax, insurance, HOA, utilities, and a maintenance reserve.
6. Total monthly housing payment. Add mortgage principal and interest.
7. Lender escrow deposit. Add annual taxes and insurance, divide by 12 for the monthly escrow portion, and remember most lenders collect an initial cushion at closing.

Illustrative example

The following example is for method only. Replace these figures with actual assessor data for any home you consider.

• Hypothetical purchase price: $700,000
• Assessed value: assume assessed equals market value for this example
• Combined tax rate: assume 2.00 percent for illustration only
• Annual property tax: $700,000 × 2.00 percent = $14,000
• Monthly property tax: $14,000 ÷ 12 = $1,166.67
• Add insurance of $100 per month and a $200 maintenance reserve
• Total monthly non‑mortgage housing cost: $1,466.67

This shows how the tax rate drives your monthly budget. Your actual combined rate may differ widely by town, school district, and special districts.

Escrow and DTI impact

Lenders include monthly property taxes and homeowners insurance when they calculate your debt‑to‑income ratio. Higher taxes reduce how much you can borrow for the same income. Be sure to model taxes for each town on your shortlist. Tax bills can change after purchase if the municipality revalues property or changes rates, so build a buffer.

Timing, appeals, and due diligence

Appeals basics

If you believe your assessed value is too high, you can appeal. Appeal windows, evidence requirements, and hearing bodies differ by jurisdiction. Common evidence includes comparable sales, a recent appraisal, and documentation of measurement errors. For New York property tax process information, start with the NYS Department of Taxation and Finance property tax page. For Connecticut statutes and local procedures, consult the Connecticut General Assembly and your town assessor.

Closing prorations

Property taxes are typically prorated between buyer and seller at closing based on the billing period. Local practices differ on whether bills are paid in advance or arrears, and how interim payments are handled. Confirm with your lender and closing attorney so your cash‑to‑close estimate reflects local norms.

Cross‑border checklist

Use this list to compare Westchester towns with nearby Connecticut communities:

• Contact each town’s assessor to confirm the current assessed value, combined tax rate or mill rate, billing schedule, and any pending revaluation.
• Verify school district boundaries and the district’s tax rates for the property you are considering.
• For New York homes, review STAR eligibility and enrollment steps on the STAR program page.
• Ask your lender how they calculate escrow, the required initial cushion at closing, and how they handle semiannual or quarterly tax bills.
• Confirm transfer and recording taxes with the county or town finance office. Westchester resources are available via the county government site. Connecticut conveyance tax details are on the DRS site.
• Use the worksheet above with the assessor’s actual figures to model monthly payments and your DTI.
• If taxes seem high for a specific property, ask about the appeals process and gather comparable sales to support a possible challenge.

Get local guidance

Cross‑border decisions are easier when you can see the full monthly picture, including taxes, STAR, escrow, and closing costs. If you want to compare Westchester and nearby Fairfield County homes side by side, reach out for tailored guidance and real numbers for the towns on your shortlist. Connect with Tom Flynn to build a clear, accurate plan for your next move.

FAQs

How do Westchester school taxes compare to Connecticut?

• In Westchester, school district taxes are a major portion of many bills and may be reduced by New York’s STAR program if you qualify. Connecticut does not have STAR; towns may offer their own exemptions or credits.

What is New York’s STAR and how do I get it?

• STAR is a New York program that reduces school taxes for eligible owner‑occupied primary residences. Review eligibility, benefits, and enrollment steps on the STAR program page.

How often are properties revalued in CT and NY?

• Revaluation schedules vary by town on both sides of the border. Ask the local assessor when the last revaluation occurred and whether one is scheduled that could affect your future bill.

Do lenders always escrow property taxes?

• Many lenders require escrow for taxes and insurance, collect an initial cushion at closing, and add one‑twelfth of annual costs to your monthly payment. Confirm your lender’s policy and cushion amount.

What closing taxes should I expect when buying?

• In New York and Westchester, expect state and possibly county or local transfer charges. In Connecticut, expect the state real estate conveyance tax and local recording fees. Confirm current amounts with the county or town and the Connecticut DRS.

Where can I find official tax rates for a specific town?

• Check each town’s assessor page for current mill rates and bills. For state‑level references, use the Connecticut OPM for CT guidance and the NYS property tax page for NY resources.