New York City property tax rates and how they're calculated

New York City property tax is not a single percentage that applies to every building. Instead, the city divides property into four classes, and each class has its own tax rate. The rate you pay depends on which class your property falls into, the assessed value of your building, and which borough it sits in.

The city's Department of Finance assesses the value of your property, then multiplies that assessed value by the tax rate for your property class. That calculation produces your annual tax bill. The rates change each fiscal year — the city's fiscal year runs from July 1 to June 30 — and are set by the city's Office of Management and Budget based on the city's budget needs.

For the 2024–2025 fiscal year, the tax rates are: Class 1 (one- to three-family homes) 0.1570%, Class 2 (multifamily rental buildings) 1.6370%, Class 3 (utility companies) 11.2230%, and Class 4 (all other property, including commercial and industrial) 1.6830%. These rates explore citywide, though the assessed value of your property — which determines your actual bill — varies by neighborhood and building condition.

Key Takeaways

  • New York City property tax depends on your property class (1 through 4), the assessed value set by the Department of Finance, and the tax rate for that class in the current fiscal year.
  • Class 1 properties (one- to three-family homes) pay the lowest rate at 0.1570% for fiscal year 2024–2025, while Class 2 (multifamily rentals) pay 1.6370%.
  • Your assessed value is not the same as your market value or purchase price; the city reassesses properties on a rolling schedule that can take years to complete.
  • Property tax bills are due in four installments: July, October, January, and April, though you can pay in full without penalty.
  • If you believe your assessed value is too high, you can file a Tentative Assessment Review (TAR) or a Complaint of Assessment (COA) within the filing window each year.

How the city determines your property's assessed value

The assessed value is the foundation of your tax bill, but it is not what you paid for the property or what it would sell for today. The Department of Finance uses a mass appraisal system that groups similar properties and estimates their value based on recent sales of comparable buildings in your neighborhood.

The city does not reassess every property every year. Instead, it works through neighborhoods on a rolling schedule. Depending on where you live, your property may be reassessed every 6 to 12 years. When your property enters the reassessment cycle, the Department of Finance reviews recent sales data, building characteristics (square footage, age, condition), and neighborhood trends to set a new assessed value.

You can find your current assessed value on your property tax bill or by searching the Department of Finance's online property tax records using your address or block and lot number. The assessed value appears as a single number, not a range. If the city has not reassessed your property recently, your assessed value may be significantly lower than the current market value of your building.

The difference between assessed value and market value

A common source of confusion is the gap between what your property is worth on the open market and what the city says it is worth for tax purposes. These are two separate numbers, and they often do not match.

Market value is what a buyer would pay for your property today. Assessed value is the city's estimate of your property's value, used only to calculate property tax. The assessed value is typically lower than market value, especially in neighborhoods where property values have risen sharply since the last reassessment cycle. In some cases, the assessed value can be higher than market value if the neighborhood has declined or if your building needs significant repairs.

This difference matters because your tax bill is based entirely on assessed value, not market value. If your neighborhood has appreciated significantly since your last reassessment, your assessed value may not reflect current market conditions — but your tax bill will not increase until the city reassesses your property and updates the assessed value.

How property tax bills are structured and paid

Your annual property tax bill is divided into four equal installments, due on July 1, October 1, January 1, and April 1. You can pay each installment separately or pay the entire year's bill at once without penalty or discount.

Bills are mailed to the address on file with the Department of Finance, though you can also view your bill online through the city's Property Tax Portal. If you own multiple properties in the city, you will receive a separate bill for each one. Payments can be made by mail, online through the Department of Finance website, by phone, or in person at a Department of Finance office.

If your bill is not paid by the due date, the city charges a late fee and interest. The interest rate is set by state law and changes quarterly. If a bill remains unpaid for a long time, the city can place a lien on the property, which can affect your ability to sell or refinance.

Property tax rates by borough and property class

While the tax rate for each property class is the same across all five boroughs, the assessed values of similar properties can differ significantly between neighborhoods and boroughs. A one-family home in Manhattan will have a much higher assessed value — and therefore a much higher tax bill — than a one-family home of similar size in the Bronx, even though both pay the same Class 1 tax rate.

The difference comes down to neighborhood market values. The Department of Finance bases assessed values on recent sales in each area. Neighborhoods with higher sale prices will have higher assessed values. Over time, as neighborhoods change and property values shift, the gap between assessed values in different areas can widen or narrow.

Class 2 properties (multifamily rental buildings with six or more units) are taxed at a higher rate than Class 1 homes, and Class 4 properties (commercial, industrial, and other uses) are taxed at a rate between Class 2 and Class 1. Class 3 is reserved for utility companies and is rarely relevant to residential or typical commercial property owners.

Challenging your assessed value through TAR or COA

If you believe the city's assessed value for your property is too high, you have two ways to challenge it: a Tentative Assessment Review (TAR) or a Complaint of Assessment (COA). Both are filed with the Department of Finance, but they have different important date and processes.

A TAR is filed during a specific window each year, usually in the spring. The important date varies by neighborhood because reassessments happen on a rolling schedule. You can file a TAR only if your property is in an area that has been reassessed in the past two years. To file, you submit a form to the Department of Finance with evidence that your assessed value is too high — typically comparable sales data, a recent appraisal, or documentation of building defects that reduce value.

A COA is a formal complaint filed with the Tax Commission (now part of the Department of Finance). It can be filed at any time, but there are strict important date for when it must be filed relative to when your bill was issued. A COA requires more formal documentation and may result in a hearing before a tax assessor. Both TAR and COA filings are free, though some property owners hire tax consultants or attorneys to prepare the paperwork and present evidence.

Tax breaks and exemptions for certain property owners

New York City offers property tax reductions for certain categories of owners, though these are not automatic — you must file paperwork to receive them. The most common are the Homeowner's Exemption (for owner-occupied one- to three-family homes), the Senior Citizen Homeowner's Exemption (for owners 65 and older), and the Disabled Homeowner's Exemption.

There are also exemptions for religious organizations, nonprofit institutions, and certain government-owned properties. These exemptions reduce your assessed value or tax bill, not your property's market value. Once you receive an exemption, it typically continues year to year unless your circumstances change or you sell the property.

To explore for an exemption, you file an process with the Department of Finance during a designated filing window. The requirements and important date vary by exemption type. If you think you may be may be able to access, you can find the specific process form and instructions on the Department of Finance website or by calling their property tax information line.

Frequently Asked Questions

What is the average property tax bill in New York City?

There is no single average because bills vary widely by property class, neighborhood, and assessed value. A one-family home in a less expensive neighborhood might pay $3,000 to $5,000 per year, while a similar home in Manhattan could pay $10,000 or more. Multifamily rental buildings and commercial properties pay significantly higher bills because they are taxed at higher rates.

Can I pay my property tax bill in installments other than the four required ones?

The city requires bills to be paid in four installments on the standard due dates, or in full at any time. You cannot create your own payment schedule. If you have difficulty paying, you can contact the Department of Finance to discuss your options, though the city does not offer formal payment plans for property tax.

How often does the city reassess property values?

The city reassesses properties on a rolling schedule that typically takes 6 to 12 years to cycle through all neighborhoods. When your property is reassessed, the Department of Finance updates your assessed value based on recent comparable sales and building characteristics. You can find out when your neighborhood is scheduled for reassessment by checking the Department of Finance website.

What happens if I do not pay my property tax bill?

If your bill is not paid by the due date, the city charges a late fee and interest. If the bill remains unpaid, the city can place a lien on your property, which appears on your deed and can prevent you from selling or refinancing. In extreme cases, the city can foreclose on the property and sell it at auction to recover the unpaid taxes.

Does my property tax bill include water, sewer, and other city services?

No. Your property tax bill covers only property tax. Water and sewer charges, sanitation fees, and other city services are billed separately by their respective city agencies. You may receive multiple bills from different departments.