What Are the Current NYC Property Tax Rates?
Understand the calculation behind your NYC property tax, from the city's initial valuation to the final rate applied to your property's taxable value.
Property taxes in New York City fund public services like schools, law enforcement, and sanitation. The system is based on the value of real estate within the five boroughs. The city’s valuation process is a multi-step calculation that determines a property owner’s final tax bill.
How NYC Values Your Property
The New York City Department of Finance (DOF) values every property in the city by first determining its Market Value. This figure is the estimated price a property would sell for under normal conditions, often based on sales of comparable properties. While this is a foundational step, it is not the value used to directly compute the tax.
After establishing Market Value, the DOF categorizes the property into one of four classes. Class 1 includes most residential properties with one to three units. Class 2 covers all other residential properties, including cooperatives and condominiums. Class 3 is for utility company equipment, and Class 4 includes all other commercial and industrial properties.
Each class has an assessment ratio, a fixed percentage applied to the Market Value to determine the property’s Assessed Value. For Class 1 properties, this ratio is 6%. A home with a Market Value of $800,000 would therefore have an Assessed Value of $48,000, which is the starting point before any reductions are applied.
Determining Your Taxable Value
After the Assessed Value is set, eligible property owners can lower it through tax exemptions and abatements. These programs reduce the financial burden on homeowners and result in the property’s final Taxable Value, which is the figure used to calculate the tax.
Common exemption programs include the School Tax Relief (STAR), Senior Citizen Homeowners’ Exemption (SCHE), and Disabled Homeowners’ Exemption (DHE). The STAR program provides relief on school taxes for owner-occupied primary residences, usually as a credit via check or direct deposit. Some long-time recipients may still receive it as a direct exemption.
The SCHE program reduces the Assessed Value for seniors who meet age and income requirements. For the 2025-2026 tax year, the combined annual income limit is $58,399 or less. The DHE program offers a similar benefit for homeowners with documented disabilities who meet the same income limit.
Veterans’ exemptions are also available, offering a tax reduction to qualified military veterans. The exemption amount can vary based on factors like service during a period of conflict. Each program has specific eligibility criteria and application processes.
Abatements provide a direct credit against the tax owed, rather than reducing the Assessed Value. They are often granted for a limited time to encourage actions like energy-efficient upgrades or new construction.
Current NYC Property Tax Rates
The final step is to apply the official tax rate to the property’s Taxable Value. The New York City Council sets these rates annually for the fiscal year (July 1 to June 30). The rates for the fiscal year ending June 30, 2025, are as follows:
- Class 1: 20.085%
- Class 2: 12.500%
- Class 3: 11.181%
- Class 4: 10.762%
To calculate the tax, multiply the Taxable Value by the tax rate. For instance, a Class 1 property with a Taxable Value of $40,000 would have an annual property tax of $8,034 ($40,000 x 0.20085).
Understanding Your Property Tax Statement
The Department of Finance sends a Notice of Property Value (NOPV) in mid-January. This is not a bill, but a statement showing your property’s Market Value, class, Assessed Value, and any applied exemptions for the upcoming fiscal year. Reviewing the NOPV is the first chance to check for accuracy.
Following the NOPV, you will receive the property tax bill. This document shows the final calculation, including the tax rate applied to your Taxable Value. It also details the total amount due, payment installments, and due dates. Together, these documents provide a transparent breakdown of how your property tax is calculated.
Important Dates and Payment Methods
New York City’s fiscal year for property taxes runs from July 1 to June 30, with payments due on specific dates. The payment frequency depends on the property’s Assessed Value. Properties assessed at $250,000 or less are billed quarterly (due July 1, October 1, January 1, and April 1), while those assessed over $250,000 pay semi-annually (due July 1 and January 1).
A grace period for quarterly payments allows payment without interest for up to 15 days after the due date. If a deadline falls on a weekend or holiday, it extends to the next business day. Late payments will accrue interest.
The city offers several payment methods. You can pay online through the DOF’s portal via a bank account or credit card, though fees may apply for cards. Owners can also mail a check or money order or pay in person at any DOF Business Center.