Statewide & Federal
NY Agricultural Tax Exemptions & Credits
New York offers several real property tax programs for working farmland - collectively saving farmers an estimated $170 million a year statewide.
What It Offers
- Agricultural Assessment Program - taxes eligible farmland at its agricultural value (based on soil productivity) rather than full market value, typically cutting the property tax bill by 10-40%.
- Agricultural Buildings Tax Credit - a 10-year property tax exemption on the increased assessed value from newly constructed or reconstructed farm structures.
- Farmers' School Tax Credit - a state income tax credit for the school taxes paid on qualified agricultural property.
- Rented farmland can also qualify for agricultural assessment if it's under a written lease of at least 5 years.
- Sales Tax Exemption (Form ST-125) - farmers and commercial horse boarding operators can buy equipment, feed, seed, supplies, and other qualifying purchases free of state and local sales tax, with no minimum income requirement.
How to Apply
- Visit your county Soil and Water Conservation District office for a Soil Group Worksheet (a small fee, often around $20) - this classifies your land by soil productivity.
- Land generally needs 7+ acres used the past two years for producing crops, livestock, or livestock products, with at least $10,000 in sales ($50,000 if under 7 acres).
- File Form RP-305 with your local assessor by the taxable status date (March 1 in most towns) - renew annually afterward with the short form RP-305-r.
- For the Agricultural Buildings Tax Credit, apply within one year of completing construction on the new or reconstructed structure.
- For the sales tax exemption, fill out Form ST-125 and give it to the seller at the time of purchase (or use it as a blanket certificate for repeat purchases from the same seller) - the exemption applies immediately, it isn't filed with the state afterward.
Source: agriculture.ny.gov and tax.ny.gov (NYS Department of Taxation and Finance, Office of Real Property Tax Services). Eligibility details and thresholds are set by state law and can change - confirm current requirements with your local assessor.
