Property taxes are confusing. There are many state and local laws and regulations around them. This leads to confusion for property and homeowners; worse, it also ushers in an overburden of property taxes.
Nassau County in New York has a unique, and frankly somewhat complex, property tax system. In this article, we’ll explain the nuances of Nassau’s property tax code and will help you file a tax grievance.
What are Property Taxes?
Before going further, we have a mutual definition of property taxes. State and local governments levy property taxes to help fund taxpayer services, such as public schools, roads, safety, and police and fire departments.
In most cases, state and local governments determine a property or homeowners’ taxes based on the value of their home. Counties determine properties’ values via several approaches, including:
- Sales comparison or market approach
- Mass appraisal approach
- Income approach
- Cost approach
Learn more about these different approaches in our helpful property assessment article!
So, what are real estate taxes, then?
Sometimes, property taxes are called real estate taxes. In fact, the IRS officially calls property taxes “real property taxes.”
How Nassau County Assess Property Taxes
Nassau County’s Department of Assessment is responsible for over 423,000 properties valued at $264 billion—the second largest property entity in New York behind New York City.
Because both counties have so much property under assessment, they’re the only municipalities in New York that don’t assess property taxes using a uniform percentage of market value.
In fact, according to Ownwell data, Nassau County has an average tax rate of 2.10%—0.29% below the New York state average tax rate of 2.39%. That said, these tax rates vary considerably based on the city, town, and zip code you live in!
So, how does Nassau County calculate your property tax rate?
The Department of Assessment uses several factors when determining your property’s taxable value.
- Market value
- Assessed Value (for general and school tax purposes)
- Calculated tax rate
- Tax class designation
Below is a breakdown of different factors used to determine the property tax rate.
Market Value
The “market value” for each property is traditionally based on how much a property would sell under normal conditions. Consider this market value as a baseline Nassau County uses to calculate your property’s value and collected taxes.
The average fair market value in Nassau County is $537,000, with the highest median tax bill being in Kings Point at $52,630, while Glen Cove has the lowest median tax bill at $881.
Taxable Assessed Value
In all cases, normal market conditions aren’t actually met. Thus, Nassau County determines the assessed value of each property using Computer Assisted Mass Assessment (CAMA) software that compares multiple variables, like location, square footage, condition, recent sales, etc. The Department of Assessment calls its CAMA software ‘Prognose.’
With Prognose, Nassau County applies a set of “level of assessment” (LOA) to the full market value of a property. The LOA varies by property tax class (more on this later).
To make things more confusing, Nassau County your taxable assessed value "fair market value" on the county site and "full market value" on the notices.
Calculated Tax Rate
For 2025 and 2026, the Assessor set residential properties (Class 1) at a level of assessment of 0.1%.
Meaning the taxable assessed value is just 0.1% of the market value. For example, if a property in Nassau has a market value of $500,000, the assessed value would be $500 ($500,000 x .001 LOA).
Property owners can use the County’s public website, The Land Records Viewer, to examine this information in further detail.
Property Classes
Nassau County has four property classes, which have different LOAs and, thus, tax rates.
Class 1:
- One, two, or three-family homes that are lawfully and actually used primarily for residential purposes
- No more than three units on the tax lot
- Residential condominium units not exceeding three stories, nor converted from rental or cooperative use
- Vacant land zoned for residential or mixed-use
- An extra lot used as part of an adjacent home’s yard
Class 2:
- Residential rental and cooperative apartment properties
- Residential units in condos that are more than three stories in height or converted from rental or cooperative use
- Properties lawfully and actually used primarily for residential purposes with four or more units on the tax lot
Note, assessments of cooperatives and Class 2 condos’ market value are based on the property as a whole, as if operated as a rental.
Class 3:
- Government-regulated utility company properties and equipment, such as dump trucks, cables, telephone poles, etc.
Class 4:
- All other commercial property, including office buildings, factories, stores, hotels, and other utility property
For more detailed information, view New York’s property type classification codes.
How to Reduce Your Property Taxes
You shouldn’t simply accept your property taxes as your local municipality or state deems. In New York, there are two primary ways to reduce your property taxes: exemptions or filing a tax grievance (AKA a protest or appeal). Let’s discuss exemptions first.
Seven Nassau County Property Tax Exemptions
In Nassau County, there are seven residential exemptions that qualifying individuals and property owners can apply for.
1. Basic and Enhanced STAR (School Tax Relief Credit)
Exemption overview: The School Tax Relief (STAR) Credit program is the tax exemption that will impact the most significant number of New Yorkers. Initially enacted in 1997 as the STAR Exemption, it aimed to lessen the burden of property taxes on New Yorkers. In 2015, the STAR Credit replaced the STAR Exemption.
The STAR Credit issues homeowners a partial rebate on school property taxes via a check from the state. Generally, the rebate amount is based on income, home location, and property tax levels.
In Nassau County, the STAR credit deadline is January 2.
There are two STAR benefits.: The Basic School Tax Relief (STAR) and Enhanced School Tax Relief (E-STAR). Read our in-depth STAR Credit article for more information!
Eligibility for Basic STAR:
- The primary residence of at least one property owner.
- No age requirement
- If the total income of all owners and spouses who live on the property is more than $250,000, you must register for the STAR credit.
- Married couples can only have one property on the STAR program unless legally separated or divorced with proper documentation.
Eligibility for Enhanced STAR:
- The property must be the primary residence of at least one property owner.
- Currently have the STAR Exemption (1997-2015) on your property
- All owners must be 65 or older by the end of the current year you’re applying for (December 31).
- Income limit for all owners (residents and non-residents, including spouses):
- 2024 benefits: $98,700 or less.
- 2025 benefits: $107,300 or less.
How to File:
Homeowners who aren’t receiving the Basic or Enhanced STAR credit and meet the above-listed requirements can apply via Nassau County’s Exemption Applications page, except Glen Cove residents, who should follow the general application instructions here.
Here are the two application forms (there’s no filing fee for Nassau County):
Basic STAR application (2025-2026 school year)
Enhanced STAR application and mandatory RP-425-IVP form (for homeowners receiving the Basic STAR credit and applying for the Enhanced STAR one).
2. Home Improvement
Exemption overview: This law enables an eight-year decreasing property tax exemption for permitted improvements, alternations, and reconstructions that increase the value of a one or two-family home.
Eligibility:
A more significant portion of the original structure after reconstruction must be five years or older.
It is calculated based on the inventory on the current property record card. For instance, a living area of 500 square feet can’t have square footage exceeding 999 square feet post improvements.
The statute states that the improvement must equal a market value between $3,000 and $ 80,000.
You can find home improvement exemption information here.
3. Senior Citizens
Exemption overview: Homeowners 65 and older whose 2023 income, including gross social security earnings, is $58,399 or less. The exemption provides reductions between 5% and 50% on county and town taxes. Special district taxes aren’t reduced.
Eligibility:
Income is all money received from taxable and non-taxable sources, including social security. However, welfare, supplemental security income, gifts, or inheritances aren’t included.
Contributions to IRAs aren’t deductible, yet earnings on IRAs are included as income. Distributions from IRAs are excluded, though.
Applicants must’ve owned the property for at least 12 consecutive months before applying.
Filing requirements:
- Proof of age via a government ID
- Proof of primary residence via a New York State Income Tax Return
- Copy of deed or certificate of shares
- Proof of unreimbursed medical expenses, e.g., doctors or pharmacy expenses
- Proof of death certificate if one owner of the Deed or Certificate of Shares is deceased.
4. Persons with Limited Incomes and Disabilities
Exemption overview: Property owners with mental or physical disabilities, or in some cases, property owned by a spouse or family member with a disabled resident. For individuals with limited income, see the chart below.
Not that this is a fairly complicated New York tax exemption with a lot of upfront paperwork involved. See the Department of Taxation and Finance’s disabled page and Nassau County’s brochure for more detailed information.
Eligibility:
The property owner's or all owners' combined incomes determine the exemption percentage. It’s the same chart in the senior citizens’ exemption section.
Disabled persons impaired due to the current use of alcohol or illegal drugs aren’t eligible.
Note that you can’t receive the Persons with Limited Incomes and Disabilities exemption and the Senior Citizens’ exemption.
Filing requirements:
- Proof of income
- An award letter from a federal government body proving disability
- An award letter from the U.S. Department of Veterans Affairs verifying eligibility for a Veterans’ Disability Pension
- Proof of age via a government ID
- Proof of primary residence via a New York State Income Tax Return
- Copy of deed or certificate of shares
- Proof of unreimbursed medical expenses, e.g., doctors or pharmacy expenses
5. Home Improvement for the Physically Disabled
Exemption Overview: Section 459 of NYS Real Property Tax Law allows for property tax reduction for home improvements that make the home occupied by a disabled resident more accessible and usable.
Eligibility:
A resident owner or member of the resident owner’s household who is physically disabled (see the criteria listed above).
The property must be a one, two, or three-family residence.
The disability must be certified in writing by a licensed New York physician or attested to in Section 2 of the Application for Partial Exemption for Real Property of People Who Are Physically Disabled.
6. Veterans
Exemption Overview: Qualifying veterans, spouses, and family members will see the county and town portion of the property tax bill reduced. School districts can choose to opt in to offer further reductions.
Eligibility:
Veterans, spouses, or both; un-remarried surviving spouses; Gold Star Parent (a parent or dependent parents whose child died in the line of duty while serving in the Armed Forces).
Active duty in the U.S. Armed Forces during different war times and locations. See the dates and conflicts here.
Calculated benefits:
- 15% of assessed value for non-combat veterans who served during wartime.
- An additional 10% for combat veterans who served in a combat zone.
- An additional benefit for disabled veterans
- Cold War exemption is 15% of assessed value or current Nassau County cap of $135, whichever is lower.
- Additional benefit to disabled veterans.
Filing requirements:
- Proof of ownership via a Deed or Certificate of Shares
- Proof of residence via a driver’s license, registration, NYS Resident Income Tax Return, SSA 1099, or Voter Registration Card
- Other acceptable military records and documentation outlined by New York State’s Department of Taxation and Finance
7. Volunteer Firefighter and Ambulance Worker
Exemption Overview: Homeowners enrolled as members of a volunteer fire department or ambulance service for a minimum of two years of service can qualify for a 10% property tax exemption of their property’s assessed value.
This exemption depends on whether your city, village, or school district opted into the exemption, and calculations vary by assessing jurisdiction.
Eligibility:
- At least two years of service
- Lifetime exemption to members with over 20 years of volunteer service (Nassau County only)
- Un-remarried spouse of a deceased volunteer already receiving the exemption from the 20-year service exemption whose spouse passed in the line of duty and was already receiving the exemption.
Filing requirements:
- Proof of Certification of enrolled membership in the fire department, company, or ambulance service.
For all of the above-listed exemptions, you can fill out and submit a Nassau County exemption form today!
File a Tax Grievance
Homeowners and property owners in Nassau County should consider filing a tax grievance to potentially lower their property tax burden. High property taxes can be a significant financial strain, and challenging an over-assessment could lead to substantial savings.
Do you have three minutes? Let Ownwell file your tax grievance!
Steps for Filing a Tax Grievance in Nassau County
Filing a tax grievance in Nassau County involves a specific process that starts with the tentative assessment roll, which will be issued on January 2, 2025.
The first step in starting a tax grievance for Nassau residents is to file an AR-1, AR-2, or AR-3 Form with the Assessment Review Commission (ARC). Residential one, two, or three-family homes and low-rise condos will use the AR-1 Form. You have until March 3, 2025, to submit a tax grievance.
Note that submitting an AR Form is an informal appeal where you or an agent on your behalf, like Ownwell, will negotiate with the ARC.
If an agreement isn’t reached after two or three efforts, the case can proceed to a judicial review through the Small Claims Assessment Review (SCAR). A SCAR hearing allows property owners to present evidence, and if successful, you will receive a tax refund within 90 days.
In Nassau, a SCAR hearing has a $30 filing fee payable by check or money order to the “Nassau County Clerk.” They also take place between June and October of the following year.
Read our article on how to file a tax grievance for more information, such as important dates and deadlines!
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