Thinking about buying in Armonk and trying to pin down your property taxes? You are not alone. Taxes and escrow drive your monthly carry, so getting the numbers right matters before you write an offer. In this overview, you’ll learn how taxes are structured in North Castle, how to forecast your annual bill and monthly escrow, and what to verify before closing to avoid surprises. Let’s dive in.
Armonk property taxes, explained
Who taxes your home
A single Armonk property is taxed by several jurisdictions. The largest share is usually the school district. You will also see the Town of North Castle, Westchester County, and any special districts such as fire, library, or water and sewer on the bill. To review a specific parcel’s assessment and history, start with the Town of North Castle Assessor and the Westchester County Department of Finance tax portal.
Assessed value vs. market value
New York uses an assessed value for each parcel and applies tax rates to that value. Assessed value may or may not equal market value. To compare assessments across towns, New York publishes an equalization rate that shows how assessments relate to market value. You can review current equalization information through the NYS Office of Real Property Tax Services.
Effective tax rate vs. NYC
If you are moving from New York City, avoid comparing nominal tax rates across systems. NYC uses a different classification structure. A better yardstick is the effective tax rate: annual property tax divided by market value. This simple ratio lets you compare carrying costs across city and suburban markets in a consistent way.
Forecast your annual taxes
Follow these steps to generate a working estimate before you go to contract:
- Identify the property and pull the current assessed value from the Town of North Castle Assessor or the county portal.
- Confirm whether assessments are at or near market value. If not, use the town’s assessment ratio or the state equalization rate to translate between assessed and market values.
- Apply exemptions you qualify for to reduce taxable value. Common items include owner-occupancy, veterans, senior, and STAR. For STAR rules and enrollment, see the NYS Department of Taxation and Finance STAR program.
- Multiply each jurisdiction’s tax rate by your taxable assessed value to find the school, town, county, and special district components. The Byram Hills Central School District publishes budget and levy information you can use for the school portion.
- Add all components to get the total annual property tax.
What to read on a tax bill
When you review a bill, note the parcel ID and assessed value, any exemptions and dollar amounts, tax rates or levy amounts for each jurisdiction, the total due, the payment schedule, and any special assessments or prior-year adjustments. The county portal often displays bill images that break out each line item. The Westchester site also lists due dates so you can predict when payments will hit.
Estimate your monthly carry
Your monthly carry is more than taxes. Divide your annual property tax by 12 for the monthly tax portion, then add mortgage principal and interest, homeowner’s insurance, utilities, HOA fees if any, and routine maintenance. If your lender escrows taxes and insurance, your monthly payment will include those escrow contributions.
Example calculation (illustrative only)
This is a simple example to show the math. Replace with the parcel’s actual assessed value, current rates, and your exemptions.
- Market value/purchase price: $1,200,000
- Assessed value used for taxes: $1,200,000
- Combined tax rate assumption: $30 per $1,000 of assessed value
- Annual property tax: ($1,200,000 ÷ 1,000) × $30 = $36,000
- Monthly tax portion: $36,000 ÷ 12 = $3,000
Use the effective tax rate to compare: $36,000 ÷ $1,200,000 = 3.0 percent in this example.
Other costs to include
Build a conservative budget. Add homeowner’s insurance, utilities, potential PMI, routine maintenance, and any HOA fees to your monthly estimate. Commuting and service costs may differ from city living. Revisit the numbers after you confirm the initial escrow deposit from your lender and the exact tax due dates.
Escrow and closing mechanics
How escrow works
Most lenders require an escrow account for property taxes and homeowner’s insurance. They estimate yearly bills and divide by 12 to set your monthly escrow payment. At closing, lenders also collect an initial escrow deposit to fund upcoming bills and a small cushion. For an overview of how escrow accounts work, review the CFPB’s guide to escrow accounts.
Cushion limits and annual analysis
Under federal RESPA rules, the escrow cushion is generally limited to a maximum of two months of escrow payments. Lenders perform an annual escrow analysis. If taxes or insurance increase, your escrow payment can rise, or you may owe a shortage. If the account is overfunded, the lender typically refunds the excess above the allowed threshold.
Proration at closing
Property taxes are usually prorated between buyer and seller based on the closing date. If the current tax bill is not yet issued, the closing may use last year’s bill or the budgeted levy for estimates, with a later adjustment once the actual bill arrives. Expect your lender to collect several months of escrow at closing to cover the next due bill and the cushion, which can make the first month’s outlay higher than your simple monthly estimate.
What to confirm before closing
- Whether your lender requires escrow for taxes and insurance.
- The initial escrow deposit and whether the cushion is included.
- How taxes are prorated on the Closing Disclosure and whether proration is based on the calendar year or a tax year.
- Whether any unpaid taxes or special assessments exist. These are typically cleared at closing.
Local Armonk specifics to verify
STAR and other exemptions
Owner-occupied primary residences may qualify for Basic or Enhanced STAR, subject to income and other rules. Confirm eligibility, enrollment, and timing using the STAR program guidance. Verify any exemptions showing on the parcel with the North Castle Assessor.
Reassessments and appeals
Towns periodically revalue property, which can shift assessed values independent of market movement. If you believe an assessment is too high, you can file a grievance during the town’s published window after the tentative roll is filed. Check dates and procedures with the Town of North Castle Assessor and reference equalization material from NYS ORPTS.
Special districts and timing
Special district charges such as library, fire, and water or sewer may appear as separate lines on your bill. For due dates and payment methods across school, town, and county bills, consult the Westchester County tax portal and the Byram Hills Central School District for school tax schedules.
Buyer checklist to avoid surprises
- Before contract acceptance
- Review the seller’s most recent tax bill and the prior two years of bills.
- Ask for proof of current exemptions, such as STAR or veterans.
- During inspection and underwriting
- Confirm assessed value, pending reassessments, and any open assessment appeals with the North Castle Assessor.
- Request a preliminary escrow disclosure from your lender showing the monthly escrow and the initial deposit.
- Have the title company search for unpaid taxes, tax liens, or special assessments.
- Before closing
- Review the Closing Disclosure for tax proration and the initial escrow deposit.
- Confirm upcoming tax due dates with the county and school district so you know when the first post-closing disbursement will occur.
- After closing
- Finalize STAR enrollment if eligible and ensure exemptions are in your name.
- Calendar the assessment grievance deadline in case you plan to file.
- Watch your lender’s annual escrow analysis for changes.
A clear tax forecast takes uncertainty out of your Armonk purchase and supports smarter offers and smoother closings. If you want a finance-first review of your target home’s assessment, exemptions, and escrow impact, connect with William Martin for a private, investment-grade consultation.
FAQs
How do I see a property’s exact tax bill in Armonk?
- Request the latest bill from the seller or title company and verify assessment and payment history through the Westchester County tax portal and the North Castle Assessor.
Who pays Armonk property taxes at closing?
- Taxes are typically prorated based on the closing date, with the seller paying up to closing and you responsible after, as outlined on your Closing Disclosure.
Will my lender require a tax escrow, and how much is collected?
- Most lenders require escrow; they collect monthly contributions and an initial deposit at closing that can include up to a two-month cushion under RESPA rules.
When can I appeal an assessment in North Castle?
- You can file during the town’s published grievance window after the tentative roll is filed; check dates and procedures with the North Castle Assessor.
What is STAR and how does it reduce my Armonk tax bill?
- STAR provides a school tax exemption or credit for eligible owner-occupants; review eligibility and enrollment steps with the NYS Department of Taxation and Finance.
