Note: this article was updated 9/21/22 and now includes a reference link regarding the 2022-23 school tax assessments.
The Real Property Tax Relief Credit NY-IT-229 (RPTR) was implemented to provide relief to New York State (NYS) taxpayers who own qualified real property in the state. The Credit takes effect for tax years beginning on or after January 1, 2021 and is also available for 2022-23 school tax assessments. (source: https://www.tax.ny.gov/pit/property/homeowner-tax-rebate-credit.htm)
The credit ranges from $250 to $350; anything calculated under $250 cannot be taken. This is considered a refundable credit.
There are specific requirements that must be met in order to be eligible to claim the RPTR credit. These requirements are listed as follows:
- The taxpayer is subject to tax under Article 22, which is the NYS tax law governing personal income tax.
- The taxpayer must be a NYS resident for the entire tax year.
- The taxpayer primarily resided in and owned real property that received the STAR exemption or qualified for the STAR credit. STAR is a property tax exemption program that provides property tax reductions for homeowners in NYS. NYS’s website provides guidance on eligibility for STAR as well as the STAR exemption and STAR credit; link for more information is here.
- Rent received from nonresidential use of the residence is 20% or less of rental income
- The taxpayer paid the real property taxes on the property, whether partially or in full
- The taxpayer’s qualified gross income (QGI) is $250,000 or less. If QGI exceeds $250,000, this credit will not be available
Please note, taxpayers who itemize deductions on their NYS tax return must reduce the amount of itemized deductions claimed by the amount of the Credit.
Qualified Real Property Taxes (QRPT) are defined as taxes assessed that are related to a qualified taxpayer’s residence. If multiple residences are owned, then the QRPT would be the aggregation of the prorated QRPT allocated to each residence based on the period of time the taxpayer lived at each residence. In other words, taxpayers must allocate the QRPT based on the number of days lived in each residence during the tax year.
This program provides a great benefit to NYS property owners that qualify. If there are any questions regarding the NYS Real Property Tax Relief Credit or any other State credits, please contact EFPR Group today!
The materials contained herein are intended for educational and informational purposes only and do not constitute tax or legal advice. Readers are responsible for obtaining such advice from their own tax and legal counsel. IRS Circular 230 disclosure: Any information contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction(s) or tax-related matter(s) that may be addressed herein.