Capital Gains Tax – Detailed Guide and Simple Explanation

This is the basic basic guide you could hope to find on capital gains taxes. Capital gains taxes are incredibly important to understand on your way to extending your portfolio, improving returns, and minimizing your tax expenditure beyond income tax. Capital gains tax are often confused for dividends tax, but this common misconception is one of the many basic steps in this simple explanation guide. First, we go through what capital gains even are, and then continue on to how capital gains are taxed. Capital gains taxes also form one half of the two types of dividends taxes!

Capital Gains Explained – Investment Basics

Capital gains sounds like the best and most confusing financial term you could come up with. It has connotations of wall street and Gordon Gekko, villas in the Hamptons, and invetment portfolios worth millions. Let us take you on the journey of capital gains (and capital losses), and what you need to know about them. You may come in contact with capital gains taxes as part of the dividends you receive, from mutual funds, or from other forms of finances or investment strategies and portfolios.

Capital Gains Definition: What is Capital Gains Income?

By definition, a capital gain is when capital becomes more valuable. This capital is capital asset, and most typically in the form of stocks. Usually the capital gains or losses occur when selling an asset (such as stock in a company). A capital asset, i.e. the thing gaining in value, is also often called a security. Capital assets can occur in the form of stocks, funds, real estate investments, or any number of investment portfolios

• A capital asset which has increased in value since purchase

What are Examples of Capital Gains? How Capital Gains work

Let’s take the example of a real estate investment. You buy an apartment in New York for $300.000. It was in a particularly up-and-coming neighborhood, and now five years later it’s worth $400.000. At this point it is an unrealized capital gain of $100.000. If you decide to sell this apartment, and you get your asking price of $400.000, you will have made $100.000. This is your realized capital gain.

$400.000 – $300.000 = +$100.000 Capital

Now let’s say you decided to invest in a neighborhood which did not fare so well over the years. Suddenly your apartment did not increase in value to $400.000, but rather decreased in value to $250.000. Then you will have unrealized capital loss. If you decide to sell this apartment (perhaps to avoid further depreciation in value), you will have a realized capital loss of $50.000.

$250.000 – $300.000 = -$50.000 Capital

What Counts as Capital? Capital Asset Definition – Dividends, Stocks, Co

To understand what a capital gain really is, it is important to understand what things count as capital themselves, what is the thing gaining in value when we speak of capital gain. Looking at regulations, capital assets are defined as a piece of property which has significant value. That means a quilt given to you by your grandma for free, which you sell for $15, is not a capital gain. Still, capital assets are more far reaching than most people often think: it’s not just related to stocks, but it’s also relevant to dividends, mutual funds, and more. These are all types of capital assets:

• Property, e.g. real estate
• Jewelry, Collectibles, or Art
• Stocks
• Bonds
• Investment Properties

What is the Difference Between Realized Capital Gains and Unrealized Capital Gains? Paper Gains, Paper Losses

Capital gain is, as defined above, just an increase in the value of an asset. This increase in value can occur any time of course, and usually happens a tiny bit every day. A capital gain can therefore occur anytime, but if the asset’s owner were to never sell, then this increase in value would be irrelevant. This type of increase in value, where the owner does not sell, but if he were to sell, he would sell it for a higher price than he bought it, is called unrealized capital gain or paper gain. The increase in the assets value is not transferred to real in-pocket-money, and rather only occurs on paper. A realized capital gain is when the owner ‘cashes out’ and sells his assets for more money than purchased.

• Realized gain is when asset increases in value and is sold
• Unrealized gain (or paper gain) is when the asset is not sold, but would incur capital gain if sold

What Types of Capital Gains are There? Short-Term, Long-Term

Typically you differentiate between short-term and long-term capital gain or loss. As mentioned above, when you own capital it typically changes in value. If you hang on to this capital for less than a year before realizing your gain (i.e. before selling), it is a ‘short-term capital gain’. If, on the other hand, you have owned this capital for longer than a year when you sell it, it qualifies as a ‘long-term capital gain’. These distinctions are quite important because they decide how the profit you make from your investment is taxed.

• Short-term capital gain is when you sell after owning the capital for less than a year
• Long-term capital gain is when you sell after owning the capital for more than a year

How is the Value of Capital Calculated? Details, Explanation, Example

Some capital assets are more straightforward to calculate than other. For example, buying 10 stocks at 30$ a share is quite simple to calculate because the total value of the capital is at 10 x $30 = $300. Other capital assets are much more complex. Take for a example a property, where the land is worth $30.000, and the land owner also builds a dock with a boat. Now the total construction of the dock cost $50.000, and the boat cost $20.000, but the transport of the materials for the dock cost $8.000 and for the boat an extra $2.000. That means the current value of the items is at

$50.000 + $20.000 = $70.000

Yet, when looking at the value of capital such as this, all costs are factored in, which means that for example transportation costs would also be included, leading to a total capital value of

$70.000 + ($8.000 + $2.000) = $80.000

This example demonstrates that the value of capital is desided by all costs (including e.g. insurance costs) in the acquisiton of the asset. In the eyes of the IRS, these are also called capital expenses. By the way, if this scenario took place in Florida, there would be the addition of the documentary stamp tax (Florida’s version of the real estate transfer tax), one of the real estate purchase taxes, and the owner would have to pay the state of Florida property taxes.

What is a Capital Gain Tax? Rates, Long- and Short-Term, More

So we’ve gotten to the heart of what capital gains and losses are, how they are categorized and how to calculate them. Only thing left now is to understand how to tax them. This is probably easier than you imagine, but harder than it should be

Capital Gains Tax Definition: What is Capital Gains Tax?

Capital gains tax is a tax on the profit you make with investment in capital assets. If you buy stocks and sell them for more money than you bought them, you have made profit (i.e. capital gains), and this extra money that you are receiving is taxed. If you sell capital for more than you bought it, you will necessarily, by law, pay capital gains tax.

• Tax on investments which gained value, e.g. stocks that grew

Capital Gains Tax Example Calculation – How Capital Gains Tax Works, Formula

So, let’s say you are filing your taxes. For the past two years you have held some stock in a great company, but now are looking to buy a new car. You sell your stocks for $10.000 more than you bought them for. That means you have realized capital gains of $10.000. Because you held these for longer than a year, you will be taxed at the capital gains tax rate. Also, because you are not married and do not have a partner, you are filing single. For a single filing, below $40.000, there is a 0% tax rate. Great! So on this capital gain you will pay no taxes!

$10.000 x 0 = $0

Now, what if you held on to the same stocks for another year, and then decide to sell them. In this time they gained so much in value that you realize a capital gain of $60.000! Now you will be in a higher tax bracket, that means that you will have to pay some taxes. For capital gains tax rates (see the full details below), the second bracket starts at $40.000 in capital gains. That means you will have to pay 15% tax on the $20.000 which exceed $40.000

($40.000 x 0) + ($20.000 x .15) = $3.000

That means you will have to pay $3.000 in capital gains taxes from your $60.000 realized capital gain.

Are Short-Term Capital Gains Taxed Separately from Income? How Capital Gains Taxes Work

Although, it is important to distinguish taxes on capital gains and capital gains taxes. The capital gains tax only applies to long-term capital assets (i.e. owned for longer than a year), while short-term capital assets are taxed as if they were normal income, at the income tax rate like the salary you receive from work. Capital gains tax rates are lower than income tax rates!

• Short-term capital gains are taxed using income tax rate
• Long-term capital gains are taxed less with capital gains tax rate

When do you Have to Pay Capital Gains Tax?

This is a good question. If you hang on to good stock for 20 years you will continually be becoming more and more wealthy, yet are not paying taxes… right? Yes! You pay taxes on capital gain when this gain is realized. This is what’s called a ‘taxable event’. That means when the event (i.e. selling your capital) occurs, you pay taxes. If you never sell your capital, you won’t have to pay taxes on it! Your tax bill is never affected by unrealized capital gains or losses.

Do you have to Pay Tax on Capital Losses?

No! You do not have to pay taxes on capital losses, because you are not making any money. Quite the opposite, you can deduct capital losses from your tax bill. This is one of the most important ways to reduce your taxes. More on that below.

• You do not have to pay tax on capital losses
• You can deduct capital losses from your tax bill

Capital Gains Tax Rates – USA

The USA has a federal capital gains tax, but also many states have their own capital gains tax rates. That means you have multiple stops that your capital gains will be taxed at.

USA – Federal Capital Gains Tax Rates List, Brackets

For the federal level, your capital gains are taxed at the following rates if you are filing single

• 0% tax: <$40.000
• 15% tax: $40.001 – $441.450
• 20% tax: >$441.450

How much is Capital Gains Tax in New York? Rates, Brackets, List

The state of New York has no free-standing capital gains tax rate. Here, long-term and short-term capital gains are equally taxed using the state’s income tax rate. Just like New York property tax rates, the income tax rates are relatively high, but see for yourself. In New York capital gains are taxed at these rates:

• 4% tax: $0–$8.500
• 4,5% tax: $8.501–$11.700
• 5,25% tax: $11.701–$13.900
• 5,9% tax: $13.901–$21.400
• 6,33% tax: $21.401–$80.650
• 6,57% tax: $80.651–215.400
• 6,85% tax: $215.401–$1.077.550
• 8,82% tax: $1.077.551 +

How much is Capital Gains Tax in California? Rates, Brackets, List

Just like the state of New York, California also has no free-standing capital gains tax rate. Here, long-term and short-term capital gains are equally taxed using the state’s income tax rate. California income tax rates are also quite high, thanks its mega metropolises Los Angeles and San Francisco housing some of the biggest companies in the world. In California capital gains are taxed at these rates:

• 1% tax: $0-$8.809
• 2% tax: $8.809.00-$20.883.00
• 4% tax: $20.883-$32.960
• 6% tax: $32.960.00-$45.753
• 8% tax: $45.753-$57.824
• 9,30% tax: $57.824-$295.373
• 10,30% tax: $295.373-$354.445
• 11,30% tax: $354.445-$590.742
• 12,30% tax: $590.742-$1.000.000
• 13,30% tax: $1.000.000 +

How to Avoid Capital Gains Tax – Saving Money with Deductions

If you are receiving dividends, you probably want to pay as little as possible in taxes. Giving away money that you have invested and worked for seems harsh. Better to structure your taxes better and save money. Maybe not save money from your dividends taxes, but just give less away.

Best Trick for Real Estate: How do I Avoid Capital Gains Tax on Property?

You pay no federal taxes on qualified dividends when your total income is below $39.375! That means if your income is higher, suddenly you have to pay more taxes, and will end up with less money in your pocket in the end. In this case you could actually save money by just working less so as to avoid reaching the point where you have to pay the dividends or capital gains taxes. Remember: This only applies to the federal capital gains taxes.

• No capital gains tax when income is below $39.375

Looking for more ways to save on your tax bill, check out our top tips!

Real Estate Tax Deductions

Tax Deductions for Companies! Capital Expense Deductions

Important in the topic of capital gains, are the fact that acquiring capital assets is incentivized by the state. That means that if you are clever enough to form an LLC or an S corp, you can write off big purchases such as machinery, property, or other items which can count as capital assets. Remember though! Most expenses have to be written off over time, if you buy a car for your business, you cannot deduct the full price of your tax bill in one go.

• Capital expenses can be deducted from tax bill

How to Save Taxes with Capital Losses – What to do when Capital Loses Value

If your investment has lost value, it may hurt at first. This is normal though, and isn’t as bad as you first thought perhaps. This is because you can deduct capital losses from your tax bill. That means you pay less taxes because your investment did not turn out well! Only one catch, while you have to pay taxes on capital gains for all types of assets (e.g. even jewelry), you can only deduct capital losses when you bought your asset for investment purposes. For example stocks, property, etc. are all purely investment, and therefore can be deducted when losing in value.

• Deduct capital loss from tax bill
• Only possible for assets purchased for investment

How to Offset Capital Losses – Capital Gains Tax Explanation, Example

If you have made a significant capital gain in a year, but also capital losses (which, let’s be honest is quite common and to be expected), then you can write off the capital losses. For example, if you have made $200.000 in capital gains over some particularly lucrative stock, but have also made $100.000 in losses from a particularly poisonous investment, then you only need to pay taxes on the $100.000 of profit you made on the first. This is why it is called offsetting, because you offset some of the gain you make with the losses.

• Reduce your capital gain by the amount you lost through your capital losses

Tax Special! Income Tax

To learn about dividends tax means to learn about income tax as we’ve learned. That’s not a problem though because we have a simple guide for learning about income tax for the very beginners. It is a simple explanation of everything you need to know about paying income tax, how to tax income and everything in between. Income tax is something that will follow you forever, so it’s best to get to know it now and forever hold peace with it.

USA Income Tax

Tax Special! Dividends Tax

Dividends tax also utilize capital gains taxes! Although dividends also carry their whole own addition of complications and confusions. We’ve writtena nother helpful and simple guide to learn everything you need to know about dividends taxes, how they work, when they occur, and of course also how to save money on your dividends taxes. No doubt you’re going to learn something very important in this article.

Dividends taxes are taxes on the dividends which you receive as a shareholder in a company. What are dividends? In a sense they are like the company sharing part of their income with you, as a reward and incentive of being a shareholder in their company.

USA Dividends Tax

Tax Special! Property Tax

As mentioned, taxes on property are nearly as complicated as on income or capital. Property taxes, where they are taxed, what they tax, and how to pay less property taxes, can all be found in our all-encompassing guide on property taxes.

Property tax is often confused as being a tax on real estate property. Yet this is a misconception. The largest proportion of property taxes come from real estate, because this is the most expensive property most people own. Yet property taxes can also be levied on airplanes, computers, furniture, etc. In the U.S., each person pays an average of $1.617 in property taxes a year. The state which pays the most property taxes is New Hampshire with $3.307.

USA Property Taxes

Der Beitrag Capital Gains Taxes USA – Simple Explanation, Definition, Rates, How-to Save Money erschien zuerst auf ℄ Real Estates.

What are the Best Neighborhoods in USA? High Standard of Living

The USA is home to some of the biggest and most attractive cities in the world. From Miami to L.A., cities here are incomparable to anything else worldwide. There’s undreds of thouands of millionaires living in the USA, and you may be wondering where. Well, for this reason we’ve compiled the biggest, best, most expensive, and luxurious real estate locations in all of USA for you. This is the definitive list of real estate investment in USA neighborhoods.

Most Expensive Neighborhoods – What is the Richest Suburb in America?

No surprise, the richest suburb in the USA is Atherton, California, right next to Silicon Valley, where hundreds of ultra-wealthy CEOs live. The average house here is worth over $10 mio., and the average salary around $450.000. Thanks to it being right next door to San Francisco, the inhabitants will also find enough to do. New York is also represented on the list, as well as Miami, and Boston. Perhaps surprisingly, Wilson, WY is also in the top 10. Alongside it, Glenbrook NV which may owe its position to the fact that Nevada has no income tax. Check out the full list with the median house price below:

1. Atherton, California – $10.194.000
2. Los Altos, California – $6.326.000
3. Tribeca, New York – $5.137.000
4. Medina, Washington – $4.894.000.
5. Fisher Island, Miami – $3.707.000
6. Glenbrook, Nevada – $3.225.342
7. Beacon Hill, Boston – $3.155.000
8. Woods Hole, Massachusetts – $3.154.000
9. Snowmass, Colorado – $3.031.000
10. Wilson, Wyoming – $2.798.000

Miami Best Neighborhoods for Real Estate – Coral Gables, Indian Creek Island, Co

Miami Vice, CSI: Miami, there are seemingly hundreds of TV shows and movies set in this legendary city. Thanks to its uniquely attractive climate, along with ultra-expensive real estate, you’re likely going to be looking at a life of vacation in this Florida metropolis.

If you’re looking at buying property in Miami, you’re going to want to know exactly which neighborhood you are going to be lookinng at. It is important to invest in the right areas to avoid a depreciating property haunting you. Below is our suggestion on the best neighborhoods in Miami to invest in real estate:

1. Downtown Miami
2. Coral Gables
3. Little Haiti
4. Bayshore
5. Pinecrest
6. Coconut Grove

Of course if you want to really go for the big time, and move to one of the richest neighborhoods in USA, you can also head for Fisher Island or Indian Creek. Here you can expect to pay over $10.000.000 for an average house! Check out the full article on Miami neighborhoods below!

Miami – Best Neighborhoods

Los Angeles Best Neighborhoods for Real Estate – Bel Air, Culver City, Co

Los Angeles is famous for its vancant lots, its relaxed atmosphere and legendary suburbs. Buying a house in L.A. was for some time a pleasure, with Culver City, Echo Park, and similar communities being home to affordable real estate and desirable living. Nowadays though you’ll likely have to settle for less.

Los Angeles real estate investment requires a good strong look at the neighborhoods. We’ve analyzed the data and come up with our suggestions for buying real estate in Los Angeles. Below is the definitive list of best LA neighborhoods for property investment:

1. Culver City
2. Silver Lake
3. Glendale
4. Monrovia
5. North Hollywood
6. Highland Park
7. Venice Beach

These are probably the best neighborhoods if you’re thinking about investing in real estate. For a full rundown of where to invest, and how to invest in LA, take a look at our article which tells you all the most important facts about L.A. real estate investment.

Los Angeles – Best Neighborhoods

NYC Best Neighborhoods for Real Estate – TriBeCa, Upper East Side, Co

There are a lot of really expensive places in New York. In fact it is one of the most popular places for the super rich. If you’ve walked along the streets in TriBeCa or Chelsea, you will not be surprised that these areas count to some of the most exclusive, luxurious neighborhoods in the whole country.

For New York real estate investment we must go beyond TriBeCa and Manhattan though. Williamsburg, Flatbush, are great places if you want to buy an apartment in New York, and in the Hamptons you’ll have no problem buying a house in NY. all places where a good deal will take you far. Below is the definitive list of best NY neighborhoods for property investment:

1. East Village
2. SoHo
3. Park Slope
4. Williamsburg
5. Greenwich Village
6. Chelsea
7. TriBeCa

These are probably the best neighborhoods if you’re thinking about investing in real estate. For a full rundown of where to invest, and how to invest in NYC, take a look at our article which tells you all the most important facts about NY real estate investment.

New York – Best Neighborhoods

San Francisco Best Neighborhoods for Real Estate – Haight/Ashbury, SoMa, Co

San Francisco is where the hippie movement began, where Facebook, Apple, Google, and pretty much every other tech startup call home, and is also home to some of the most expensive suburbs in the world. Of course not everywhere is expensive here, and if you want to invest smartly, you will not invest only in the areas that are already in. One positive, California property tax is quite low compared to other states!

If you’re looking at buying property in San Francisco, you’re going to want to know exactly which neighborhood you are going to be looking at. It is important to invest in the right areas to avoid a foul investment. Below is our suggestion on the best neighborhoods in Miami to invest in real estate:

1. SoMa
2. Union Square
3. Sunset District
4. Nob Hill
5. Haight/Ashbury
6. Pacific Heights

These are probably the best neighborhoods if you’re thinking about investing in real estate. For a full rundown of where to invest, and how to invest in San Francisco, take a look at our article which tells you all the most important facts about San Francisco real estate investment.

San Francisco- Best Neighborhoods

Las Vegas Best Neighborhoods for Real Estate – Bel Air, Culver City, Co

Las Vegas is the city of sin, and its real estate market may at times feel like that. The market here can be complex and scary, but not to worry because we are experts. One advantage of living in Las Vegas: Nevada is one of the states with no income tax.

Las Vegas is perhaps best known for the strip, and while it’s certainly not a bad idea to invest here, there are many places you only find out about if you’ve lived in the area. There are hundreds of gated communities around it though, and Summerlin and Henderson are the suburban millionaires dream areas. Check out our list of the best neighborhoods for property investment:

1. Whitney Ranch
2. The Strip
3. Arts District
4. University Districct
5. Summerlin
6. Rancho Charleston

These are probably the best neighborhoods if you’re thinking about investing in real estate. For a full rundown of where to invest, and how to invest in LV, and the things you absolutely need to look out for, our article can help. Check out

Las Vegas – Best Neighborhoods

How to Invest in Real Estate USA – Most Important Facts

If you’re wondering about where to invest in the USA, look no further. Big players like New York, Miami, and Los Angeles are analyed above, to explain in detail the state of real estate, an analysis of the current real estate market in USA, broken down, in simple words.

Real Estate Forms – Types of Property Investment

There are many different types of real estate (whether commercial, industrial, residential), but also different types of residential real estate, such as condos, apartments, houses, and the list goes on on and on. There are a few to concentrate on, and for sake of space, we won’t go into too much detail here. The most important types are house, apartment, townhouse, and condo. Check out our article if you want to learn more about types of real estate investment.

• Apartment
• House
• Condo
• Townhouse

What Real Estate Corporations are There? Sole Proprietor, S Corp, LLC, etc.

If you’re going to invest in real estate, you will want to reduce real estate taxes, and reduce liability. This is important so that you do not become involved in a costly legal battle which can cost you your livelihood. Forming a company which rents and owns your property means that the company is liable, and not you. If you want to do real proper investment, and would rather avoid legal issues and unnecessary taxing, these forms of corporations are for you:

• LLC
• Limited Partnership
• General Partnership
• S Corporation
• C Corporation
• Multiple Entities
• REIT

Taxes – Real Estate Taxes Explanation

Taxes are almost universally hated. On top of the fact that it a person has to give away some of their own money, it is also incredibly confusing which makes it all the more frustrating to deal with. Thankfully, that second part can be helped with our easy explanations on the topics.

Property Taxes – What are Property Taxes?

Property taxes are taxes you pay to the state in return for owning real estate. This can be in the form of a house, or of a piece of land, and in some states you can even pay property taxes on your boat or computer.

• Illinois Property Tax – 2.05%
• New York Property Tax – 1.40%
• Florida Property Tax – 0.94%
• Washington Property Tax – 0.92%
• California Property Tax – 0.74%
• Hawaii Property Tax – 0.30%

Property taxes are typically calculated by multiplying a certain rate (e.g. in Washington: 0,92% = 0,0092) by the value of your property (e.g. $1.000.000), which results in your property tax:

0,0092 x $1.000.000 = $9.200

For a full list of property tax rates by state, check out our article

• Property Taxes Explained, Ranked by State

Buying Real Estate Taxes – Transfer Tax, Mortgage Tax, Etc.

There are 3 taxes when buying real estate. These three are real estate transfer tax, the mortgage tax, and property taxes, which you must pay pro-rata. In fact these are just few of the costs which will be approaching you when buying real estate! There are also the infamous closing costs, which can cost incredible sums.

• Transfer Tax
• Mortgage Tax
• Property Tax (Pro-Rata)

Are you looking to save money on the taxes you have to pay in relation to your real estate. Then you should take a look at the many

Real Estate Tax Deductions

Der Beitrag USA: Buy Property! Neighborhoods to Invest – Coral Gables, Manhattan, Culver City, Co. erschien zuerst auf ℄ Real Estates.

Where do the Richest People Live?

If you’re a millionaire, you want a house befitting of a millionaire. That’s why we’ve collected everything you need to know about the places with the most millionaires, the most billionaires, the most expensive cities int he world and the country. This is the definitive luxury list. London is the city with the most millionaires in the world, with 357.000, the size of a small city! Keep reading to find out where the richest of the rich buy their property…

List – Cities with Most Millionaires

One way to measure where the richest people live is to see how many millionaires live in the city. The more millionaires, the more luxurious, expensive and high class the city is bound to be. What makes up a city to have a lot of millionaires? First and foremost, a lot of people. That means that in a city with 5 million inhabitants, you’ll likely have 5 times more millionaires than in a city with 1 million inhabitants. It’s also about where there’s luxury real estate though, because millionaires want to live like millionaires.

Worldwide – Top 10 Cities with Richest People

So, without further ado, it’s time to look at the cities which are home to most millionaires. No surprise, New York is near the top with 357.000 millionaires . It’s a playground if you want to buy luxury New York real estate. The top 5 are rounded out by London at the very top, and three asian cities following. The top 10 cities with the most millionaires worldwide are:

1. London, UK – 357.000 millionaires
2. New York City, USA – 339.000 millionaires
3. Tokyo, Japan – 279.000 millionaires
4. Hong Kong, HK – 228.000 millionaires
5. Singapore, Singapore – 217.300 millionaires
6. San Francisco, USA – 180.300 millionaires
7. Los Angeles, USA – 173.300 millionaires
8. Chicago, USA – 135.000 millionaires
9. Frankfurt, Germany – 128.300 millionaires
10. Beijing, China – 122.000 millionaires

USA – Top 10 Cities with Richest People

The USA is well-represented in the top 10 cities worldwide, making up 3 of the top ten. That’s not bad. In total the USA has over 18.000.000 millionaires, more than 4 times as much as the nearest competitor, China. With this many millionaires, they have to live somewhere, a lot of them in NYC, San Francisco, and Los Angeles obviously, but where else? These are the top 10 cities in the USA with most millionaires:

1. New York City, NY – 339.000 millionaires
2. San Francisco, CA – 180.300 millionaires
3. Los Angeles, CA – 173.300 millionaires
4. Chicago, IL – 135.000 millionaires
5. Washington, DC – 120.000 millionaires
6. Boston, MA – 110.200 millionaires
7. Philadelphia, PA – 109.000 millionaires
8. Houston, TX – 98.500 millionaires
9. San Jose, CA – 90.700 millionaires
10. Detroit, MI – 90.100 millionaires

Most Popular Destinations for the Ultra Rich – Las Vegas, L.A., and more

So you want to learn more about how the richest of the rich live? Well look no further. The richest can be found in Las Vegas Bellagio Suites, Miami Penthouses, and New York Lofts. This is how the richest of the rich live.

Las Vegas – Where the Millionaires live

Las Vegas is home to the richest man in Nevada and the richest man is: Sheldon Adelson, owner of the Las Vegas Sands, a luxury resort chain. It is home to the world’s biggest and best Casinos, and some of the most prime real estate you can imagine. Las Vegas has more gated communities than water in the ocean, and each is more luxurious than the last. That makes it attractive for people looking to have some fun, but also people who are looking to invest smart.

$18.5 mil. Mansion – Villa Tour in Las Vegas

One example of a property in Las Vegas. Typical for the city: decadent furnishings, modern and sleek style, combined with lush greenery, and of course… a golf course in immediate proximity. It also has 7 bedrooms, as well as pool with its own 21 foot waterfall.

• Location: 93 Spanish Gate Drive, Las Vegas, NV 89113

What is the Most Expensive Neighborhood in Las Vegas? The Ultra Rich

It’s a bit of a complicated matter, with Summerlin and Henderson probably being the residential areas with the most >$1 mil. transactions. Although these are not strictly within city limits, we’re just going to count it as Las Vegas. So, the most expensive residential area in Las Vegas is ‘the Ridges’, located in Summerlin. Prices range from $2 mil. and $7 mil. for a house. It is also the area in Las Vegas with most house sales >$1 mil, with the most expensive on the market at the time of writing being $30,4 mil. The full list of most expensive communities in Las Vegas below:

1. The Ridges: $2.000.000 – $7.000.000
2. Anthem Country Club: $1.200.000 – $4.400.000
3. Macdonald Highlands: $1.000.000 – $4.200.000
4. Southern Highlands Country Club: $1.000.000 – $3.000.000
5. Seven Hills: $1.000.000 – $2.700.000

Las Vegas Luxury Real Estate – Property Investments in Sin City

In Las Vegas, real estate is a commodity like in any other city, except with the difference that the city is filled with people looking to make a quick buck, and ready to take a risk. What real estate is concerned it’s an interesting market, and is likely going to be a growing niche in the national markets. Learn more about the hottest neighborhoods, the best places to live, and what you have to know about Las Vegas:

Las Vegas Luxury Real Estate

Miami – Billionaire Row in Florida

Miami is a tropical mega city, and has all the luxury and decadence to show for it. From manmade islands, to the best restaurants in the world, as well as a booming arts scene, and postcard worthy views at every turn. It’s hard to top this city for atmosphere. No wonder it’s home to thousands of millionaires who happily take a seat overlooking the clear turquoise blue waters. If you want to live among the ultra-wealthy, Miami is the place to go.

Designer Mansion in Florida – Millionaire Miami House Tour

Just outside Miami is Tommy Hilfiger’s ‘Fun House’. Here, nestled between ocean and palm trees is a mansion that looks more like a luxury resort. Estimated to be worth around $25.000.000, this probably isn’t easy to purchase. But it is on the market right now! Designed by Martin Lawrence Bullard, this beach villa tour is bound to leave you speechless.

Most Expensive Areas – Where do Millionaires live in Miami?

You may have heard of millionaire’s row in Miami. But Millionaire’s Row isn’t what it used to be. Not since the 90’s have the richest people in Miami lived in this stretch on Collins Avenue between 41st and 63rd Street. Nowadays the ultra-wealthy are heading towards Indian Creek Island, where the biggest and most expensive houses can be found.

List – Where do Millionaires live in Miami?

In Miami, millionaires tend to live in a few top neighborhoods. Although arguably all of Miami Beach is a massive luxury suburb, there’s some neighborhoods you won’t believe. As mentioned the most expensive, hottest, most billionaire, CEO, model, Actor place is definitively Indian Creek Island. Also popular are the Venetian Islands, manmade islands with some of the east coast’s most exclusive properties. Another area to keep in mind: Fisher Island, another of the famous islands lining Miami’s coral-blue waters. These are the richest neighborhoods in Miami:

1. Indian Creek Island: $15.000.000 – $47.000.000
2. North Bay Road: $7.500.000 – $45.000.000
3. Star Island: $7.100.000 – $28.000.000
4. Hibiscus Island: $1.200.000 – $14.200.000
5. Venetian Islands: $1.000.000 – $25.700.000

Where to Buy Property in Miami – Real Estate Investment Florida

To make smart investments, you need to know the situation. From Florida property taxes, mortgage, renovations, etc. everything you need to know about buying a house in Miami, can be found in our article on the top investment areas for Miami. It also details real estate market explanations, and steps to buying real estate, houses, apartments, etc. in Miami, Florida’s hottest, richest, biggest, city.

Miami Luxury Real Estate

Los Angeles – Richest, Celebrities, and CEOs

Los Angeles is maybe one of the most famous cities in the world. If you want to buy real estate in L.A., you may want to look away now. L.A. isn’t just famous because it’s home to Hollywood, Bel-Air, and Beverly Hills. This mega city has everything from art, world-class restaurants, stadiums, beaches, and the list goes on. It’s truly a playground for the richest of the rich.

Top 10 Richest People in L.A. – Who are L.A’s richest inhabitants?

The richest people to live in L.A. are mostly businessmen. There are few women, and also few from the film industry. Although the famous movie director Steven Spielberg is at 12th, and music mega-producer and owner of Geffen Records, David Geffen is at 6th position. The richest people living in L.A. are Elon Musk ($197 bi0.), pharma mogul Patrick Soon-Shiong (6,9 bio.), and Sean Parker ($3 bio.). To spot for the richest people in L.A., the full list of wealthiest Angelenos:

1. Elon Musk
2. Patrick Soon-Shiong
3. Sean Parker
4. David Geffen
5. John Tu
6. Eli Broad
7. Stewart & Lynda Resnick
8. Tamara Hughes Gustavson
9. Steven Udvar-Hazy
10. Rick Caruso

Most Expensive Property in Los Angeles – Luxury Home

This massive property has been dubbed the most luxurious house in the USA. Being worth over $250 million, and including a prviate helicopter, personal chefs, masseuses, 24/7 security, and much more, it makes sense that this property is as expensive as it is.

• 21 Bathrooms
• 12 Bedrooms
• Location: 924 Bel Air Road
• Price: $250 mio.

Where do the Rich Live in Los Angeles? Most Expensive Areas in L.A.

Everyone’s heard about the mega-mansions in Beverly Hills, or the villas lining the palm-lined streets in Bel-Air. There’s probably a lot of areas you’ve never heard of though, that are home to the richest and most luxurious houses you can imagine. Topping the list, Beverly Hills with the average home here costing aroun $9.990.000. Note, if you want to buy an apartment in L.A., it won’t be this expensive! Below the list of most expensive neighborhoods in L.A.:

1. Beverly Hills – $9,99 mio
2. Bel-Air/Holmby Hills – $5.7 mio.
3. Malibu – $5,49 mio.
4. Brentwood – $4,5 mio.
5. Pacific Palisades – $4,7 mio
6. Beverly Hills Post Office – $4,4 mio.
7. Santa Monica – $3,6 mio.

Buying Real Estate in L.A. – Most Expensive

For Luxury Real Estate in L.A., for example if you want to buy a house in L.A., you’re going to want to get informed first. That’s why we have our full overview below. It tells you everything from the current state of the market, the things you should look out for, where to buy real estate in L.A., and pretty much everything else you need to know if you’re thinking about buying property in the city of angels.

Los Angeles Luxury Real Estate

New York – NYC Billionaires Real Estate

If Los Angeles is one of the most famous cities in the world, New York City is the most famous. It is synonymous with metropolis, America, and everything you could ever want or imagine exists in this mega-metropolis. It’s home to some of the tallest buildings in the world, the richest people in the world, the best condos and apartments, and the best bars and restaurants. Apart from some extremely high property taxes, New York City is a gift for real estate investors.

Condo tour in New York – Luxury Apartment Walk-Through

This apartment can be found in the world’s slimmest skyscraper, and gives you a view of central park. It’s seemingly endless luxury begins with the plaster walls, true-wood flooring, a bar with marble countertops. If you’re packing your bags, slow down though, as you’re going to be looking at the hefty price tag of $28.750.000.

• Price: $28.750.000
• Location: 111 West 57th

What is the Most Expensive Neighborhood in New York? The Richest in the Big Apple

It’s no surprise that almost all of the most expensive properties in New York are going to be found in Manhattan. Famous for big companies, its crazy income tax, and skyscrapers to no end. Remember that these prices are for buying an apartment in New York, if you want even more luxury, try buying a house in New York. The ultra-luxurious and high-class areas in this part of the city are world-famous. SoHo, TriBeCa, and Hudson Yards can be heard in movies and songs every year thanks to their iconic status in culture. The most expensive neighborhood in all of NYC is NoHo, with the average house costing around $3.250.000. On a side note, the most expensive area in Brooklyn Cobble Hill is around $1.600.000, and in Queens, Ditmars Steinway is $1.100.000.

1. Noho – $3.250.000
2. Hudson Yards – $3.201.875
3. Tribeca – $3.150.000
4. Central Park South – $3.050.218
5. Nolita – $3.002.146
6. Theatre District – $2.970.000
7. Bowery – $2.350.000
8. Soho – $2.330.000
9. Civic Center – $2.270.000
10. Hudson Square/West Soho – $2.050.000

Luxury Real Estate New York – Expensive and Luxurious

Buying real estate in New York is surely no easy task. If you’re thinking about investing in New York real estate, or even just want to get informed about the real estate market in New York, we have the perfect reading for you. In the article below we detail the best neighborhoods to live in New York, where to buy real estate, how to get into the real estate market, and what you need to look out for. It’s part of our series on buying a house and buying an apartment.

New York Luxury Real Estate

Der Beitrag Where do the Richest People Live? Millionaires, Billionaires and USA Mega-Mansions erschien zuerst auf ℄ Real Estates.

Buying New York Real Estate – Guide and How-To

If you want to buy real estate in New York, you’ll have to get informed. There’s many details and intricacies to be aware of and things to pay attention to. We will answer all your questions: What is the property tax like? Is New York property tax higher than elsewhere? Which New York neighborhoods are best? When should I invest in New York real estate? We answer all questions in this guide for buying real estate. Before we go on about the city though, let us take you through an important question. Which type of real estate do you want to buy?

If you already know in more detail what you’re looking for, go ahead and skip to one of the main articles! (opens in a new tab)

• Buy Apartment – New York
• Buy House – New York

Buying a House – Full Explanation, Guide

If you want to buy a house, our article on the topic is where to look. Our full guide takes you through all steps of the process from beginning to end, starting even before you decide to buy a house, and finishing after you close the deal. If you want to invest in a owning a home, this guide on buying a house is everything you need:

Buying a House

Buying an Apartment – Full Explanation, Guide

If you’d rather buy an apartment, we have you covered. Buying an apartment can be a long and arduous process, especially in a mega-metropolis like New York City. Many people neglect even the thought that apartments can be bought as opposed to rented. This article should convince you otherwise. There is sufficient reason to believe that a significant proportion of people who are currently renting their apartment, could easily buy that same property. Our guide, taking you from A to Z, will no doubt teach everything you need from this top guide. If you are even thinking about buying an apartment, this guide will bring you a step closer to your dream. This is your one stop for everything you need to know:

Buying an Apartment

Buying Real Estate in New York – Unique Costs

To buy real estate in New York is of course different than elsewhere. Let us explain the details which New York real estate carries with it, and what makes it different from other cities’ real estate markets. New York is a thriving metropolis of millions of people and a GDP larger than that of most countries. The real estate market, like most other markets in the city is booming, and there’s good reason to invest now. The only other market that would be similarly difficult is if you want to buy real estate in L.A., but honestly, there’s enough celebrities in the Big Apple.

• GDP: $1,57 trillion
• Pop.: 8,4 mil.

Taxes – Property Taxes, Real Estate Taxes + More

New York property taxes are very different than the general US property tax system. The state of New York changes the tax rates from year to year, depending on the needs of the state. Additionally, it is also complicated by the fact that tax rates are constructed in millage rates as opposed to tax rates. Property tax calculation is therefore more complicated than you’d like, but let us try to explain.

What are Millage Rates? New York Property Taxes Explanation

Mill Rates are Tax Rates. Quite similar to conventional property tax rates, Millage rates serve the same purpose and work quite similarly to the normal percentage of property value calculation. A millage rate, is first and foremost a number, as opposed to a percentage. This number indicates the amount of property tax a property owner is required to pay for their property. A mill rate of 1 indicates 1$ of tax for $1.000 worth of property, a mill rate of 24 indicates $24 of tax per $1.000 worth of property.

• Mill Rate of indicates amount of dollars of tax per thousands of dollars worth of property

New York Property Tax Rates – Most Expensive?

It is often said that New York has incredibly high property tax rates. This is true to a certain degree, New York state, and especially the counties surrounding the city of New York have relatively high property tax rates. NY has an average property tax rate of 0.86%, and this is higher than e.g. California (0.77%). Still Florida, the other major real estate state, has a significantly higher average property tax rate of 0,94%.

• New York Property Tax: 0,86%
• California Property Tax: 0,77%
• Florida Property Tax: 0,94%

Property Tax in New York Boroughs – Manhattan, Brooklyn, Queens, etc.

New York city is the real estate hotspot par excellence. Still its property tax rates are quite low compared to others in the area. New York city is made up of 5 counties (the same make up the 5 boroughs of New York), and they each have property tax rates lower than the national average.

• County of New York (Manhattan) – 0.65%
• Queens – 0.87%
• Kings County (Brooklyn) – 0.90%
• Richmond (Staten Island) – 0.91%
• Bronx – 0.97%

Want to learn more about New York Property Taxes? Reducing your property taxes? Everything you need to know in our guide on

• New York Property Taxes

Buying Real Estate Taxes – Transfer Tax, Mortgage Tax, More

You are required to pay 3 taxes when buying real estate. In New York, it is actually four. there is the real estate transfer tax, which in New York at the moment is a rate of $2 per $500 of property, amounting to 0,45% of the purchase price of a home. Additionally, you will pay the mortgage tax, called the mortgage recording tax in New York, which has a rate of 1,80% when your mortgage is worth less than $500.000 and when the mortgage is worth more than this, the rate is 1,93%. Then there is also the mansion tax, an additional 1% when the property is worth more than $1 mil. Lastly, you are typically required to pay property tax pro-rata when buying real estate.

• Transfer Tax: 0,45%
• Mortgage Recording tax: 1,80%-1,93%
• Mansion Tax: 1%
• Pro-Rata Property Tax: 0.65%-0.97%

Additional Costs – Real Estate Over-Budget

When hearing about the price of your new home, whether an apartment, condo, townhouse, or villa, you never think about all the possible additional costs in real estate. While some call these closing costs, this is not strictly true since, in addition to closing costs like real estate transfer taxes, title-search fees, escrow fees, realtor fees, etc., there are additional costs like mving and furnishing or renovation. L.A.’s closing costs are a little over 2% of the mortgage. I.e. of the mortgage principal (the money loaned to you) you can expect to pay an extra 2% to cover closing costs.

• Additional 2% of mortgage

For more information on additional costs that you can expect when buying a home:

• Buying Real Estate – Additional Costs

New York Real Estate Market Outlook

It’s almost a cliche that New York real estate is impossible to find, and that housing is a commodity for the few and rich. This is true to some degree, the real estate market in New York is intense to say the least. Yet there is enough reason to be optimistic that one can find a property, and once that is done, all evidence seems to indicate that this property will only gain in value over time.

Are Real Estate Prices Going down in NYC? – Housing Market Trends

No. The housing prices are increasing steadily, as indicated by the Case-Shiller Index. To accurately guage the development of real estate prices, the Case-Shiller statistic published by Standard & Poor’s indicates how prices are changing. To be exact, it is a residential real estate market value trend. This index allows one to view the development of housing prices in the city. In New York, one can easily see that housing prices are increasing steadily for the past 9 years.

• Housing Prices increasing steadily for past 9 years
• Case-Shiller Index NY shows development of housing prices

How much it Costs to Buy Real Estate in New York – Average Real Estate Prices

As mentioned, NYC is expensive. You will be paying more per square foot in this city than most others in the US. As mentioned though, because these prices are increasing, this investment is one which is worth the money. So how much does real estate actually cost? In New York City, the median property costs $697.000, averaging to a price per square foot of $307. If you’re looking for a passive investment and want to rent out your property, you can exxpect a Cash on Cash return of 2,1%, with rental income being around $2.200 per month.

• Median Property Cost: $697.000
• Price per Square Foot: $307

New York Real Estate Trends: Price Development Overview

Manhattan, Brooklyn and Queens are clearly a sellers market, as agreed on by the vast majority of real estate experts. The amount of sales in real estate increased by over 20% in the past year. This demonstrates the increasing power of this real estate market. Meanwhile, to get a look at what you’ll be gaining once you have bought a property, median sales price also increased. From $275.000 to $335.000, an increase of 22%! Now, you may be thinking that homes are totally overvalued then, but this seems not to be the case, with the average real estate selling 2.6% below the price asked by the seller.

• Amount of Sales: +20%
• Median Sales Price: +22%

New York Real Estate Agents – How to find the Best Real Estate Broker

Apart from experience, there are a few important things which can make or break the quality of a real estate agent. First and foremost, you will want to find someone who will act in your best interest. This can be done with an agent who is cutthroat and willing to do what it takes in negotiating with a seller, but generally, an important attribute is that your agent is compassionate and friendly. Otherwise, it can quickly turn into a nightmare experience. You of course also want to get along on a personal level with your agent, otherwise the many conversations can become quite arduous.

Finding the Perfect Real Estate Agent – Tips

These are the three things you should keep in mind when looking for a real estate agent. If he or she is missing any of these, you quickly run the risk of a financially risky situation, or simply an uncomfortable experience. This is the 3 p’s rule. The 3 p’s are

1. Personal attributes: is the agent trustworthy, approachable, diligent, etc.?
2. Payment: What is the payment structure of the agent? is their goal to make you happy or to close on as many properties as possible?
3. Past: Take a look at the agent’s past deals to see whether they have been successful

List: Top NYC Real Estate Agents

These are, according to our research the top real estate agents in New York. They are among the best and top selling agents, but also among those with the most favourable experience reports. Remember! Everyone has their own needs, and thus need different agents, but these have shown to have quality, care for their clients, and make good deals.

1. Richard Leasure (Howard Hanna Rochester)
2. John Farrell (EXIT Realty Homeward Bound)
3. Alexa Lambert (Compass)
4. Michael Kenduck (21st Century)
5. Bryan Karp (RE/Max)
6. John Lajara (RE/Max In the City)
7. Geraldine Andolina (21st Century)
8. Daniel Axtmann (Berkshire Hathaway)

Saving Money on Real Estate in New York – Tax Deduction Tricks, Tips, etc.

Real Estaet and real estate taxes are a domain where saving money is just around the corner. With the right moves, you can save in the thousands of dollars. You may want to leave this up to a tax attorney or your agent, but it’s best to be informed yourself about the options.

New York Real Estate Tax Deductions – Save Money on Mortgage

In New York City, you can deduct your mortgage interest from the first $750.000 you owe from your tax bill. This is a massive help to those struggling to make payments, especially considering that those paying mortgage interest will likely be in a harder financial situation as is. Another option for saving on taxes is to upgrade your home, which to make it more energy efficient. Lastly, if you want to improve the state of your house by taking out a home equity loan to pay for renovations, you can deduct the interest from this loan from your tax bill as well.

• Mortgage interest can be deducted
• Home equity loan can be deducted
• Energy-efficiency upgrades

We have a full-size guide on how to use tax breaks and deductions to your advantage:

Real Estate Tax Deductions

First-Time Homebuyer Advantages

For people who are not able to pay a full downpayment, there are many support programs. Real estate purchases are generally encouraged with incentives and support programs. The best are for first-time homebuyers, meaning that if it is the first time that you buy a full residence, you will pay less taxes, and have other monetary incentives. More on that in our main article on buying a house.

• Less taxes for first-time homeowners

Step-By-Step Guide – Buying Real Estate Process

These are the steps you will take when buying real estate in New York. They are by no means the most detailed (for details see buying apartment New York, and buying house New York), but cover the broad overview of what you should be keeping in mind when thinking about buying real estate. The process for all real estate will be similar, with differences only existing in the details.

1. Save up for the Downpayment
2. Find a Mortgage Broker
3. Get Mortgage Preapproval
4. Get your Team Together: Attorney, Real Estate Agent, etc.
5. Start looking at Listings
6. Go to Viewings
7. Submit an Offer
8. Close

Der Beitrag Buying Real Estate New York – Guide, Tips, Checklist for Homebuyers, Investors erschien zuerst auf ℄ Real Estates.

Most Expensive in the Country?

If you want to buy an apartment in New York, or buy a house in New York, you should be certain of your neighborhoods property taxes. New York’s property taxes are some of the highest in the country. With the top 5 highest property tax rates in the USA, finding home in New York State. This, despite New York City’s five boroughs having an average property tax rate 0,86%. New York’s investment possibilities are endless, and can be found in its boroughs, but outside as well with the shores of Lake Ontario, or the capital of Albany. New York is also one of the few states in the country where you are required to pay Mortgage Tax.

• New York Property Tax: 0,86%
• California Property Tax: 0,77%
• Florida Property Tax: 0,94%

What are Property Taxes?

Property Taxes are ad-valorem taxes which you pay for owning property, meaning that it is based on the monetary value which is estimated to be attached to an item, piece of land, property, etc. A property appraiser provides the basis for calculation. If you’re planning to buy real estate in New York, you’re going to have to get acquainted.

Property tax is often confused as being a tax on real estate property. Yet this is a misconception. The largest proportion of property taxes come from real estate, because this is the most expensive property most people own. Yet property taxes can also be levied on airplanes, computers, furniture, etc. When buying a house, these must be paid in advance, and then received back from the seller.

• Property Taxes are taxes on: Real Estate, Airplanes, Boats, etc.

How are Property Taxes Calculated?

Property taxes are ad-valorem taxes, meaning the amount you have to pay on these taxes is determined by the value of the property. This value is estimated by an appraiser, and takes into account location, age, etc. Property taxes are typically a rate which is multiplied by the estimated value of the property. E.g. a property in California will be subject to a property tax of about 0.77%. A property valued at a total of $3 mio. will require the owner to pay property tax to the sum of $23.100.

Tax Bill = Property Tax Rate x Value of Property

Property taxes are a complicated concept. To learn more about U.S. property taxes, when you have to pay them, and how much each state pays in property taxes,

• Property Tax in the U.S. – Guide

New York Property Tax Explained

In New York, property tax is quite high compared to other states. In New York State, property taxes change from year to year, depending on the needs of the state. Additionally, it is also complicated by the fact that tax rates are constructed in millage rates as opposed to tax rates. Buying an apartment in New York is therefore more complicated than you’d like, but let us try to explain.

Mill Rates are Tax Rates

Millage rates serve the same purpose and work quite similarly to conventional property tax rates. A millage rate, is first and foremost a number. This number indicates the amount of property tax a property owner is required to pay for their property. A mill rate of 1 indicates 1$ of tax for $1.000 worth of property, a mill rate of 24 indicates $24 of tax per $1.000 worth of property.

• Mill Rate of 1 indicates 1$ of tax for $1.000 worth of property

Residential Assessment Ratios – Determine your Home’s Worth

Sounds complicated, but if you’re looking into buying real estate in New York, you have to know what RAR’s are. RAR’s are a method by which the state accounts for fluctuations in the real estate market. You can challenge the assessment given to you via the RAR when you believe you property is worth 10% less than the assessment. By law, the equalization rates are used to divide taxes in tax zones that cross municipal boundaries. These tax jurisdictions can be school districts or the county.

• RAR is a ratio determining the assessment of your home

Too Much Property Taxes on your Home?

As always, there is an assessment on the value of your home. To calculate the property taxes you have to pay, you would usually calculate your property tax by multiplying this by the tax rate of your county. In New York state, you receive an approximate value which you multiply by the Residential Assessment Ratio. This gives you a value on your property, based on which you will pay your property tax.

Estimated Value = Assessment Value x RAR

Property Tax Exemptions In New York

In New York, a wide variety of tax exemptions exist. They exist with the intention of supporting those disadvantaged. Note, that these exemptions are tax breaks, meaning that they reduce the value of the property which you are paying taxes on.

STAR (School Tax Relief) is for owners of residential properties with an income <$250.000. This can save about $300/year. For owners of residentials older than 65, and with an income lower than $90.550 this can be improved to enhanced STAR, with approximate savings of $650/year. All need to be appliedd for before the deadline of March 15.

If you want to learn more about lowering your property taxes, we have a guide on the subject

• Tax Deductions for Real Estate

New York City Property Tax

Many people looking to buy a home in New York State are mostly interested in the massive metropolis making up much of its fame. The big apple is made up of 5 counties, although these counties are here counted as boroughs, and therefore do not have their own governmental agencies. New York City has an average property tax rate of 0.86% across the five counties which make up the city.

Property Tax Rate in NYC: 0.86%

Buying Property: Mansion Tax

When buying a property in New York city, you may be subject to the “mansion tax”, beginning with an extra rate of 1% when buying properties worth more than $1.000.000. This tax is intended to provide the state more funding from high earners or those with more capital. This tax, unlike property transfer tax, is paid by the buyer. For this reason it is also a staggered tax, with higher property prices incurring higher rates. These rates are from 1% up to 3.9% depending on the value of the property. Below the mansion tax rates, depending on the amount the property is bought for.

• 1.00% – $1.000.00 < $1.999.999
• 1.25% – $2,000,000 < $2,999,999
• 1.50% – $3,000,000 < $4,999,999
• 2.25% – $5,000,000 < $9,999,999
• 3.25% – $10,000,000 < $14,999,999
• 3.50% – $15,000,000 < $19,999,999
• 3.75% – $20,000,000 < $24,999,999
• 3.90% – $25,000,000 or more

Mansion tax is just one of the taxes you have to pay when buying real estate. Learn more in our article on Taxes You Pay when Buying a Property.

Building Classes – What Tax Class is your Building in?

In New York City there are different tax classes for different buildings. These set the assessment ratios, mentioned in the RAR’s above. That means that depending on which building class your property falls under, you pay a different tax rate. You are most likely to be owner of a class 1 property, as these are residential properties. Class 2 includes all properties not included in class 1, but still fall into the category of residentials. Class 3, is what is known as utility property, and class 4 commerical and industrial properties. This final class is where you would be taxed as the owner of an office space or factory. The tax rates for these classes are:

• Class 1 – 21.05%
• Class 2 – 12.27%
• Class 3 – 12.83%
• Class 4 – 10.69%

New York City Counties Property Tax Rates

The individual counties in New York city have varying property tax rates, but also make up the 5 lowest property tax rates in the whole state. This makes them an attractive place for investment, with low capital losses each year.

• Kings (Manhattan) – 0.65%
• Queens – 0.87%
• New York – 0.90%
• Richmond (Staten Island) – 0.91%
• Bronx – 0.97%

Ranked – Property Tax Rates by County

There are 62 counties in New York State. All have their own tax rates. These are also quite high, Californian property tax rates are minimal compared to these. Although, the popular counties around New York city are among the lowest, and lower than most in California. You will find the highest tax rates in Orleans (3.28%), Allegany (3.30%), and Montgomery (3.46%), with the lowest property tax rates in New York being in Kings (0.65%), Queens (0.87%), and New York (0.90%). Below is the list of New York state property tax rates, ranked from lowest to highest.

• Kings – 0.65%
• Queens – 0.87%
• New York – 0.90%
• Richmond – 0.91%
• Bronx – 0.97%
• Hamilton – 1.11%
• Saratoga – 1.62%
• Warren – 1.63%
• Jefferson – 1.64%
• Greene – 1.70%
• Essex – 1.76%
• Lewis – 1.83%
• Otsego – 1.83%
• Columbia – 1.93%
• Westchester – 1.95%
• Delaware – 1.99%
• Clinton – 2.06%
• Albany – 2.08%
• Franklin – 2.09%
• Nassau – 2.17%
• Yates – 2.17%
• Dutchess – 2.20%
• Washington – 2.25%
• Schoharie – 2.28%
• Schuyler – 2.31%
• Rockland – 2.35%
• Suffolk – 2.35%
• Ulster – 2.39%
• Ontario – 2.41%
• Tompkins – 2.45%
• Rensselaer – 2.47%
• Madison – 2.49%
• Cayuga – 2.50%
• St. Lawrence – 2.51%
• Fulton – 2.53%
• Herkimer – 2.55%
• Orange – 2.55%
• Chenango – 2.56%
• Oneida – 2.56%
• Putnam – 2.57%
• Chemung – 2.59%
• Sullivan – 2.59%
• Erie – 2.63%
• Tioga – 2.64%
• Broome – 2.77%
• Steuben – 2.78%
• Seneca – 2.80%
• Wyoming – 2.80%
• Livingston – 2.81%
• Onondaga – 2.81%
• Schenectady – 2.84%
• Genesee – 2.86%
• Chautauqua – 2.87%
• Oswego – 2.88%
• Wayne – 2.94%
• Niagara – 2.98%
• Cattaraugus – 3.11%
• Cortland – 3.17%
• Monroe – 3.19%
• Montgomery – 3.28%
• Allegany – 3.30%
• Orleans – 3.46%

Der Beitrag New York Property Taxes – Buying Real Estate Explained, List of Counties erschien zuerst auf ℄ Real Estates.