What happens to property taxes when you inherit
Long Island does not reassess on a title transfer (unlike California’s Prop 19, for example). The assessed value remains where it was at the most recent annual reassessment. But all owner-specific exemptions roll off:
- STAR exemption — gone the day of transfer
- Enhanced STAR — gone (and you may not qualify if under 65)
- Senior Citizens exemption — gone (income-tested, age-tested)
- Veterans exemption — gone (military-service-tested)
- Volunteer Firefighter — gone (service-tested)
You can register for STAR right away if it’s your primary residence. The others depend on whether you meet the eligibility criteria.
Three scenarios
Scenario A: You move in (it becomes your primary residence)
Register for Basic STAR immediately. If you’re 65+, also register for Enhanced STAR. Apply for any other exemptions you qualify for. File a grievance the next available cycle.
Scenario B: You rent it out
You cannot claim STAR or any homestead-style exemption — those require primary residence. Your tax bill goes to the full amount. Consider whether the rental income justifies the now-higher tax bill.
Scenario C: You sell it
You’ll pay prorated property taxes through closing date. The post-closing buyer faces the same exemption-rolloff issue. Be transparent in the listing about the full (non-exempt) tax amount so you don’t lose buyers at closing.
Frequently asked questions
Will Long Island reassess my inherited home to current market value?
Generally no. Nassau reassesses every property annually regardless of ownership. Suffolk towns reassess on multi-year cycles. Inheritance itself is not a trigger for reassessment.
I inherited but I’m keeping it as a second home. Can I get any exemptions?
No. STAR and most LI exemptions require primary residence. If you keep it as a second home, you pay the full tax bill.
My parent had Enhanced STAR. Can I keep it?
No — STAR is owner-specific and tied to age + income. You can register for Basic STAR if you’re under 65, or Enhanced STAR if you’re 65+ with income under $110,750.
Are there estate-tax property tax implications?
NY State has no specific property tax impact from estate transfer beyond exemption rolloff. The transfer itself may trigger NY State estate tax if the estate value exceeds the NY exemption — consult an estate attorney.
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Sources and citations
- NY Tax & Finance — STAR eligibility tax.ny.gov
- NY Tax & Finance — Senior citizens exemption tax.ny.gov
Last verified May 11, 2026. Tax rules change; we re-check every page each quarter.
Educational content and estimates only, not legal, tax or financial advice. Verify with your county or town receiver, an attorney or a CPA before making financial decisions.