Why are property taxes in NY state so high? I moved to upstate NY a few years ago for work, and while houses are cheaper than in CA, property taxes are far higher ($20K in property taxes per year for a $500K home). Some people I know are paying even $30-40K in property taxes per year. I was excited about the cheaper home prices in this area, but now that I am finally thinking about buying a home, it is fairly difficult if one includes the property taxes (without taking into consideration deduction schemes).