Real Property Tax Credit for Homeowners and Renters (Circuit Breaker)

State

New York

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Varies with Taxes Due

Minimum Tax Amount Must be Paid

Other Variation in Receipt of Benefits

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable credit to the applicant's income tax bill. The benefit varies by income with 7 different income brackets. The lowest bracket (income below $3,000) offers a credit equal to the amount that the applicant's property tax liability exceeds 3.5% of their income. The highest bracket (income between $14,001 and $18,000) offers a credit equal to the amount that the applicant's property tax liability exceeds 6.5% of their income. Additionally, the program caps a recipient's maximum credit amount based on their age and income. For those under 65, the maximum benefit ranges from $75 (if income is under $1,000) to $41 (if income is $17,000-$18,000). For those 65 years old or older, the maximum benefit ranges from $375 (if income is under $1,000) to $86 (if income is $17,001 to $18,000).

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only real residential property and up to one acre is eligible for this program. Property may include a part of a multi-dwelling or multi-purpose building, including a cooperative or condominium, or rental units within a single dwelling. It may also include a trailer or mobile home.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Property Value Limit

Renter

Other Criteria

Description of Eligibility Criteria

Homeowners or spouses must have paid real property taxes, lived in the state for a year, and lived in the same residence for 6 months or more. The value of the property may not exceed $85,000 (including all real estate owned). The average monthly rent paid by a household must be $450 or less, not including charges for heat, gas, electricity, furnishings, or board. Income must not exceed $18,000.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state disburses benefits directly to the claimant through an income tax credit or direct rebate if the benefit exceeds income tax liability.

Record ID

NY101_RR22

Footnotes

For residential property owners that rent a portion of the property, any rent received for nonresidential use of residence must be 20% or less of the total rent received. For renters, 25% of the adjusted rent is considered to be the real property tax equivalent.

Sources

N.Y. Tax Law 22-606(e) (in effect for 2022)
New York Department of Taxation and Finance, Instructions for Form IT-214 Claim for Real Property Tax Credit for Homeowners and Renters, Form IT-214I (2022)
[https://www.tax.ny.gov/pdf/current_forms/it/it214i.pdf Accessed 1010/2023]
View Archived Source

New York Department of Taxation and Finance, Claim for Real Property Tax Credit for Homeowners and Renters, IT-214 (2022)
[https://www.tax.ny.gov/pdf/current_forms/it/it214_fill_in.pdf Accessed 10/11/2023]
View Archived Source
New York Department of Taxation and Finance, Real Property Tax Credit Information
[https://web.archive.org/web/20220722034512/https://www.tax.ny.gov/pit/credits/real_property_tax_credit.htm Accessed 10/11/2023]
View Archived Source

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