By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
Albany is one of two destinations in this series that doesn't leave New York, which simplifies the sale considerably: there's no nonresident withholding at closing, and the disclosure form, transfer tax, and attorney-run process work exactly as they do on Long Island. What takes some attention on the buying side is that the Capital Region spans several counties with meaningfully different tax pictures, town and school taxes arrive as separate bills, and your STAR benefit has to be registered again at the new home.
The Long Island Sale Is Simpler Here
Every out-of-state post in this series warns about Form IT-2663, the estimated payment a nonresident owes at closing when selling New York property. Moving to Albany, it doesn't apply — you remain a New York resident, and any taxable gain is reported on your New York return as it would be for any resident.
Everything else about the sale works as usual. Know what the home nets before you start looking: commission, the New York State Transfer Tax at four dollars per thousand, attorney fees, preparation, and carrying costs. The breakdown of what a Long Island sale costs covers each line. For a long-held home, the federal exclusion of $250,000 single or $500,000 filing jointly may not cover the whole gain, and improvement receipts reduce what's taxable — the tax implications post explains how.
At about 175 miles, this is a short move, which tempts people to line up both transactions. The discussion of whether to sell or buy first covers the trade-offs.
The Process Will Feel Familiar
Of all the destinations in this series, this is the one where a Long Island seller will recognize almost everything. New York law governs both ends, attorneys are involved in the transaction as they are downstate, the Property Condition Disclosure Statement applies with its 56 questions, and the state transfer tax is the same.
The pace differs more than the procedure. Capital Region transactions generally move with less urgency than a competitive Long Island market, which gives a buyer more room to consider a property rather than deciding over a weekend. Attorneys are involved from the contract stage much as they are on Long Island, closer to downstate practice than to Western New York, where contracts are commonly drafted by agents and then reviewed. Retain a local attorney early regardless.
Because the disclosure form is the same, what you learn completing it on your Long Island sale carries over directly. The disclosure post covers the form and the 2024 changes.
Four Counties, Four Tax Pictures
This is the part that takes real attention. The Capital Region isn't one market — Albany, Rensselaer, Saratoga, and Schenectady counties each have their own rates and assessment practices, and within them each town and school district sets its own levy. Two homes at similar prices twenty minutes apart can carry noticeably different annual taxes.
Expect more than one bill. Town and county taxes and school taxes are typically billed separately and on different schedules, which affects budgeting and how taxes get adjusted at closing. Assessment practices also vary: some municipalities reassess regularly and others go long stretches between updates, so a property's assessed value may bear little relation to its market value. Ask the assessor how the town handles it.
Pull the actual current bills on any property you're considering rather than working from a rate, and do it for each town on your shortlist before narrowing down. That single step tells you more about the real cost of a home than the asking price does.
STAR Has to Be Set Up Again
If you receive a STAR benefit on your Long Island home, it doesn't move with you. Homeowners generally need to register for the STAR credit at the new home through the New York State Department of Taxation and Finance, and Enhanced STAR for qualifying older homeowners has its own income requirements.
Register promptly after closing rather than assuming it carries over, and check current rules with the state, since the program has changed over the years. This is the in-state version of the filing requirements that catch buyers in other states, and it's easy to miss precisely because you haven't left New York.
Older Houses, Wells, and Winter
Much of the region's housing stock is older, particularly in the cities and villages, which brings certain questions forward: basements and drainage, heating systems, roofs that carry snow, and lead-based paint in homes built before 1978, which comes with federal disclosure requirements. Radon is elevated in parts of New York, so testing is worth doing.
Outside the built-up areas, many properties are on private wells and septic systems rather than municipal service. That's unfamiliar territory for most Long Island buyers, and it means testing the water, checking the septic system's condition and records, and understanding what maintenance involves. Ask about both early, since neither is something to discover after closing.
Winters are colder and snowier than downstate. Heating an older home can be expensive, so ask for a year of actual utility bills rather than relying on the listing.
A Worked Example
Consider a composite case — a Nassau County household moving to the Capital Region for a state position, selling a colonial that comped near $980,000 and buying at about $420,000.
On the Long Island side, their attorney confirmed that no nonresident payment would be withheld, since they were staying in New York. They sold first, given the distance was short but the timing awkward.
In the Capital Region they looked in two counties. The homes were similarly priced; the annual tax bills were not, and the difference was large enough to change their shortlist. They found it by asking for the actual bills rather than comparing rates.
The home they bought was on a private well, which neither had dealt with before. They tested the water, reviewed the septic records, and budgeted for maintenance. They also registered for the STAR credit right after closing rather than assuming their existing benefit followed them.
Where to Start
Build a net proceeds estimate on the Long Island home and confirm with your attorney that no nonresident withholding applies. Engage a New York real estate attorney for the sale early, and a Capital Region attorney for the purchase. Pull the actual town, county, and school tax bills for every property you're considering, across each county on your list. Ask the assessor how often the town reassesses. Register for the STAR credit after closing. If the property is on a well or septic, test and review the records before closing. And ask for a year of utility bills. For a current read on your Long Island home, start with a quiet look at present value.
The Honest Bottom Line
Moving from Long Island to Albany is the easiest relocation in this series from a paperwork standpoint. You keep your New York residency, so there's no nonresident withholding on your sale, and the forms and process you already know apply at both ends.
The work is on the buying side, and it's mostly arithmetic: four counties with different tax pictures, separate town and school bills, assessment practices that vary by municipality, and a STAR benefit to register again. None of it is difficult, but it decides what a home actually costs to own. For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.
This is general information, not legal, tax, or financial advice. Tax rates, assessment practices, STAR rules, and local customs vary by county and municipality and change over time. Confirm specifics with a Capital Region attorney, the New York State Department of Taxation and Finance, and the relevant town and county, and confirm your Long Island sale details with a licensed New York real estate attorney and a CPA.
FAQs
Do I owe the nonresident withholding if I move to Albany?
No. Form IT-2663 and the estimated payment at closing apply to sellers who are no longer New York residents. Moving within the state, you remain a resident, so it doesn't apply to the sale of your Long Island home. Any taxable gain is reported on your New York return as it would be for any resident. Confirm with your attorney and CPA.
Is buying a home near Albany different from buying on Long Island?
Procedurally, very little. New York law governs both, attorneys are involved from the contract stage much as they are downstate, the Property Condition Disclosure Statement applies, and the state transfer tax is the same. The pace is generally less urgent, which gives buyers more room to consider a property. Retain a local attorney early regardless.
Why do property taxes vary so much across the Capital Region?
Because the region spans several counties — Albany, Rensselaer, Saratoga, and Schenectady among them — each with its own rates, and within them each town and school district sets its own levy. Assessment practices also differ, with some municipalities reassessing regularly and others going long stretches between updates. Two similarly priced homes twenty minutes apart can carry noticeably different annual taxes, so pull the actual bills.
Does my STAR exemption transfer when I move within New York?
Not automatically. Homeowners moving within the state generally need to register for the STAR credit at the new home through the New York State Department of Taxation and Finance, and Enhanced STAR for qualifying older homeowners has its own income requirements. Register promptly after closing and check the current rules with the state rather than assuming your benefit follows you.
What should I check on a home with a well or septic system?
Test the water and review the septic system's condition, age, and service records before closing, along with what routine maintenance involves. Many properties outside the built-up parts of the Capital Region are on private well and septic rather than municipal service, which is unfamiliar to most Long Island buyers. Ask about both early rather than discovering them afterward.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
