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Taxation is a considerable factor when purchasing a home. How do the taxes compare between living in Greenwich CT vs Westchester NY? We are going to explore taxation in both towns and provide you with valuable information, so you can decide which area is a fit for you!

Hi! If you are new to the blog my name is Charlie Vinci. I’m a Fairfield County Connecticut realtor covering Connecticut’s “Gold Coast”, and my team and I specialize in helping people move to the area.

Be sure to check out our other articles, buyer’s guides, and market reports that can be found for each of the nine towns in Lower Fairfield County! 

Let's get into it!

Table of Contents:

Introduction:

If you are thinking about buying a home in Westchester County, New York, and hopping over the state line to Connecticut is an option, I’d be willing to bet that property taxes have been part of your consideration. Connecticut and New York’s real estate taxation can be confusing, and much of the information on the internet only serves to make things worse.. In this article, I am going to break things down for you to help determine which area is a better fit for you and your family.

We will start with Greenwich, then I will compare it to Westchester while pointing out a few things that Greenwich does not include in their taxes so you can make a complete evaluation.

Greenwich Taxation Overview:

There are three components of the tax rate in Greenwich: 

  1. Market Value of the Property - Updated periodically by a town property assessor 
  2. Appraised Value - The appraised value is simply 70% of the market value 
  3. Mill Rate - Varies depending on the neighborhood, and can be adjusted over time to allow the town to increase or decrease taxes to cover the town budget

Sounds complicated? Well, I am going to make it easy for you, but first let's jump over to Westchester to see how real estate taxes are calculated there.

Westchester Taxation Overview:

Just like Greenwich, there are also three components to Westchester taxation:

  1. Market Value of the property - A local assessor determines the market value of the home and will update it periodically
  2. Equalization Rate - Town adjustment for an increase or decrease in property values, or more likely, to increase your taxes to cover an increase in the town budget
  3. Compiled Tax Rate - Combination of the county tax, town tax, school district tax, village tax and special district tax

I promised that I would make it easy for you, so let’s break it down in simple terms so you can compare the two areas. Then I am going to point out a few things that Greenwich leaves out of its taxes, so you can make a complete evaluation. 

Greenwich Average Tax Rates:

Averaging the typical mill rates in town, Greenwich has an effective average tax rate of 0.819%. So a $1MM home should have taxes around $8.19K per year. 

Greenwich, however, does not include trash pickup in their taxes. You will also pay city sewer and water bills if your home does not have septic or well. For homes with city sewer and water, Consider adding about $1 per square foot to cover these costs, but no less than $2K per year. 

Greenwich also has another tax advantage when compared to Westchester.

Currently, you can only write off $10K of state property tax on your federal income tax return. Any state property tax above this amount is essentially double taxation. You are paying tax on tax. So keeping your property tax low, has an additional advantage.

Now, let’s jump back to Westchester and see how it compares. 

Westchester Average Tax Rates:

While it’s not practical to figure out every combination of tax rates in every town, I averaged the most likely scenarios for the municipalities of Rye, Harrison, Mamaroneck, Scarsdale, Eastchester, North Castle & White Plains. 

What you are going to find is that these municipalities average an effective tax rate of 2.57%. So a $1MM home in one of these towns should have taxes around $25.7K per year. If you are looking for a home at a different price point, multiply by the millions. In other words, for a $5.5MM home, multiply by 5.5 and that should give you an idea of what your taxes will be.

As a side note: the Rye tax rate was the lowest, and the Eastchester tax rate was the highest, with the other municipalities falling closer to the middle.

Be aware that tax rates do change over time, and when you work with us, we will happily give you guidance on this topic.

Other Noteworthy Items:

  • Sales tax is more than 2% less in CT (8.375% vs 6.35%)
  • Connecticut has no “Mansion Tax” 
  • Income taxes may be slightly higher in CT (check with your tax advisor)
  • It’s also worth noting that both CT & NY offer tax exemptions, So It’s worth looking into what is currently available.

Wrap-Up:

When you add it all up, you can see why so many of the smartest minds in finance end up right here, in Greenwich CT. If you are thinking of moving to Connecticut's “Gold Coast”, I would like to work with you. If you aren't ready to call us yet, check out the rest of our website: CharlieVinci.com and grab one of the many guides, maps and checklists that we have created for you. They will save you hundreds of hours of research, and help you make a better choice for you and your family.

I look forward to hearing from you!

Best,

Charlie Vinci

Lower Fairfield County Realtor

203.952.7752

charlievinci@gmail.com

About the Author:

Charlie Vinci, the Founder and Lead Agent of the Charlie Vinci Team has become a mainstay in Connecticut’s real estate market, earning accolades as one of the top 3% of realtors within the state. Fueled by a dedication to the success of his clients and an ever-growing assortment of area-specific resources, the business continues to thrive in the constantly evolving real estate marketplace. An informative YouTube presence has been the primary driver/focus for the team, as it has allowed Charlie to engage directly with his audience and provide a consultative approach to an often ambiguous process. Whether an international client seeking relocation to the US or a local homeowner considering the sale of their property, The Charlie Vinci Team has the market knowledge, resources, and expedient level of service that clients not only desire, but deserve.

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