Long Island property taxes: why the same price can mean a different payment
After principal and interest, property tax is often the biggest piece of a Long Island payment, and it’s the one buyers most often guess at. The bill follows the address, not the price.
Nassau County has three towns, two cities, 64 incorporated villages, 56 school districts and about 200 special taxing districts, according to its FY2024 Popular Annual Financial Report, and a home’s bill depends on the combination it sits in. The county’s Department of Assessment sets assessed values there. In Suffolk, each of the ten towns has its own assessor.
Here’s how I fill in the tax field for a client:
- Start from the current bill. Ask the listing agent for the home’s most recent tax bill before you make an offer. The $12,000 a year the calculator starts with is a placeholder, not a Long Island average.
- Check the STAR line. If the seller’s school tax bill shows a STAR exemption, it may stay on your first bill, but it drops off after that. New owners get STAR as a check or direct deposit from the state, not a smaller bill. So I enter the tax without the seller’s exemption. Already closed? Here’s why your escrow can change after the first year.
- Budget on today’s bill. If a grievance is pending, use the current bill, not a hoped-for reduction.
Lenders count property taxes in the housing payment you qualify on, so this line affects how much you can borrow, too. For assessments, grievance deadlines and STAR in each county, see my Nassau County mortgage broker guide and Suffolk County mortgage broker guide.
Mortgage insurance: PMI and FHA premiums
On a conventional loan with a smaller down payment, lenders usually require private mortgage insurance (PMI), and the calculator adds it automatically; the figure in that field is only an example, and your Loan Estimate shows the real premium. PMI doesn’t have to last: the CFPB says you can ask your servicer to cancel it once your balance is scheduled to fall to 80% of the home’s original value, and it must end automatically when the balance is scheduled to reach 78%, if you’re current on payments. FHA loans work differently: upfront and annual mortgage insurance premiums apply under HUD’s rules, so for an FHA estimate, enter the annual premium rate your lender quotes. Compare the two in my guides to FHA loans on Long Island and conventional loans.
Your amortization schedule, and what extra payments do
On a fixed-rate loan, your principal and interest payment stays the same every month, but what it pays for changes. Early on, most of it is interest. Each year a little more goes to principal, and near the end most of it does. The schedule above shows the split for your own loan.
Extra money toward principal comes off the balance right away, so every month after that charges interest on less. Put an amount in the extra payment box under Fine-tune, then open the schedule above. It shows the new payoff date and about how much interest you’d save at your rate. The balance column also shows roughly when you’ll be down to 80% of the home’s original value, which is when you can ask your servicer to cancel PMI. If you do pay extra, ask your servicer how to make sure it goes to principal.
If you’d rather have a lower payment than an earlier payoff, try my mortgage recast calculator.
Flood insurance on the South Shore
Most homeowners insurance doesn’t cover flood damage, according to FEMA’s National Flood Insurance Program (NFIP). If a home sits in a high-risk flood zone (a zone beginning with A or V on FEMA’s maps) and you have a federally backed mortgage, flood insurance is required as a condition of the loan.
Shopping near the water on the South Shore? Before you sign a contract:
- Look up the address on FEMA’s Flood Map Service Center (msc.fema.gov). FEMA updates its maps over time, so check the current one rather than an old listing.
- Get a quote for that house. NFIP premiums depend on where a home is, how it’s built and what it would cost to replace, so a neighbor’s premium tells you little.
- Add the annual premium to the homeowners insurance field above.
An NFIP policy normally takes effect 30 days after you buy it, but FEMA says there’s no wait when you buy it while making a mortgage, so coverage can start at closing.
What this leaves out: closing costs
This calculator shows your monthly payment, not your cash to close. On a Nassau or Suffolk purchase, that’s your down payment plus:
- Mortgage recording tax: New York charges it when the mortgage is recorded, and some purchases carry other state or local taxes at closing.
- Title insurance: the buyer generally pays for both the lender’s and the owner’s policy, per the NYS Department of Financial Services.
- Attorney fees, lender charges and an escrow deposit for taxes and insurance, as itemized on your Loan Estimate.
Your closing attorney confirms the exact figures, and my guide to home purchase loans on Long Island walks through each step. If cash to close is the hurdle, I also offer private down payment assistance programs available through lenders I work with; see how down payment assistance works.
The monthly figure leaves out utilities and upkeep, too. Buying a co-op? Enter the maintenance in the HOA field, and set property taxes to zero if the maintenance covers them. Buying a rental? See rental property loans, and test the rent against the payment with the DSCR calculator. Refinancing? The question there is how long the savings take to cover the closing costs; see refinancing a mortgage on Long Island.
Frequently asked questions
Does this calculator work for Nassau and Suffolk County homes?
Yes. Long Island property taxes vary a lot by town and school district, so enter the home’s actual annual tax bill, from the listing or town or county records, rather than a rate. Add your homeowners insurance, and if the home is in a flood zone, add the flood insurance premium to the homeowners insurance field. On a conventional loan with a smaller down payment, PMI usually applies, and the calculator adds it automatically.
How much are property taxes on Long Island?
It depends on the address. Nassau has 56 school districts and about 200 special taxing districts, and in Suffolk each town’s assessor sets assessments, so two homes at the same price can carry very different tax bills. Use the home’s actual tax bill in the calculator rather than an average.
Is flood insurance included in this calculator?
Not unless you add it. If a home is in a high-risk flood zone (A or V on FEMA’s maps) and you have a federally backed mortgage, flood insurance is required. Check the address on FEMA’s Flood Map Service Center, get a quote and add the annual premium to the homeowners insurance field.
Does this include the mortgage recording tax?
No. It’s a one-time closing cost, not part of your monthly payment. Your Loan Estimate lists it, and your closing attorney confirms the exact figure.
Why is my Loan Estimate different from this calculator?
This calculator runs on the rate and figures you type in. Your Loan Estimate reflects the rate and program a lender actually quotes you, its mortgage insurance pricing and the tax and insurance figures it uses for escrow. Send it to me and I’ll go through it with you line by line.
What is an amortization schedule?
It’s the payoff plan for your loan. Each payment covers that month’s interest first, and the rest pays down your balance. Early on, most of the payment is interest. In the last years, most of it is principal. Open the schedule above to see the split for every year of your loan at your rate.
What’s the average mortgage payment on Long Island?
There isn’t one I’d trust. Two homes at the same price can have payments hundreds of dollars a month apart, because the property tax bill depends on the town, village and school district. Put in the price, your down payment, your rate and that home’s own tax bill, and the calculator shows the full monthly number. For typical prices, see my Nassau and Suffolk home prices by month.
Related guides
- Home purchase loans on Long Island
- FHA loans on Long Island
- Conventional loans on Long Island
- New York loan limits by county
- Nassau County mortgage broker
- Suffolk County mortgage broker
- First-time home buyer guide
- How much house can I afford? (calculator)
Sources
- Nassau County, Popular Annual Financial Report FY2024.
- Nassau County, What the Department of Assessment Does.
- Suffolk County Real Property Tax Service Agency, FAQs.
- NYS Department of Taxation and Finance, STAR eligibility.
- NYS Department of Taxation and Finance, School Tax Relief (STAR) frequently asked questions.
- Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan?.
- HUD, Mortgagee Letter 2023-05, Reduction of FHA Annual MIP Rates.
- FEMA National Flood Insurance Program, What is my flood zone?.
- FEMA National Flood Insurance Program, Buy a policy.
- FEMA, Flood Map Service Center.
- NYS Department of Financial Services, Title Insurance.
This calculator and guide are general information, not tax, legal or insurance advice, a loan offer, a rate quote or a commitment to lend. Taxes, insurance and loan costs change; your Loan Estimate, closing attorney and insurance agent give the exact figures. Kevin deNeergaard, NMLS #2450179; Scott Capital Group, NMLS #876527. Registered Mortgage Broker – NYS Department of Financial Services. All mortgage loans arranged with third-party providers. Equal Housing Opportunity.