For some homeowners in the tristate area, 10 percent of their annual salary goes right to paying property taxes on their homes.
In Westchester, homeowners pay an average of $15,000 in property taxes each year, which equates to about 10 percent of the average income of $148,775, according to a new analysis from Bloomberg.
Manhattan isn’t too far behind, as homeowners in the borough pay about $14,400 in annual taxes. However, this tends to be a lower income percentage, as they make an average of about $60,000 more per year.
Property taxes are a function of the assessed value of a home, meaning as home values rise, property taxes do as well, which can make it harder to purchase property. And thanks to tax changes that took effect at the beginning of the year, there is now a $10,000 cap on state and local income tax deductions.
Bloomberg’s study examined more than 3,000 counties with at least 200 home-owning households and more than 50 income tax returns with real estate tax information. [Bloomberg] – Eddie Small