For the tax year running July 1, 2025 through June 30, 2026, NYC property tax rates are 19.843% for Class 1 (one- to three-family homes), 12.439% for Class 2 (larger residential), 11.108% for Class 3 (utility), and 10.848% for Class 4 (commercial and industrial). Those percentages look steep on their own, but each one is applied to a fraction of your property’s market value, not the full value, so the actual share of market value you pay is far lower.
The 2025–2026 Rates by Tax Class
The City Council sets the rates each year based on the budget. For the current tax year:
- Class 1 (one-, two-, and three-family homes, small condos of three stories or fewer, and certain vacant residential land outside Manhattan): 19.843%
- Class 2 (co-ops, condos over three stories, rental buildings with four or more units): 12.439%
- Class 3 (utility company property): 11.108%
- Class 4 (office, retail, factory, and other property not in the first three classes): 10.848%
The class your property falls into is set by New York Real Property Tax Law Section 1802. If a parcel has mixed uses, the Department of Finance assigns a class based on the primary use.1New York State Senate. New York Real Property Tax Code 1802 – Classification of Real Property in a Special Assessing Unit Class 2 is further split into sub-classes by unit count: 2a for 4–6 units, 2b for 7–10 units, 2c for small co-ops and condos, and the main Class 2 for buildings with 11 or more units.
The rate alone does not tell you what you owe. The number that matters is the taxable assessed value the rate hits.2Department of Finance. Property Tax Rates
How the Rate Turns Into a Bill
Assessment Ratios
Your assessed value is a fixed percentage of your market value, and the percentage depends on your tax class. Class 1 is assessed at 6% of market value. Classes 2, 3, and 4 are each assessed at 45% of market value.3NYC Department of Finance. Definitions of Property Assessment Terms
So a Class 1 home with a market value of $600,000 has an assessed value of $36,000. Apply the 19.843% Class 1 rate to that $36,000 and the tax works out to roughly 1.2% of market value before any exemptions. A Class 4 commercial building with the same $600,000 market value is assessed at $270,000, and the 10.848% rate applies to that larger base.
Assessment Increase Caps
State law limits how fast your assessed value can rise. Class 1 assessed values cannot increase more than 6% in a single year or 20% over any five-year period. Class 2 small-building sub-classes face an 8% annual cap and 30% over five years.4New York State Senate. New York Real Property Tax Code 1805 – Limitation on Increases of Assessed Value of Individual Parcels The caps do not apply to increases caused by new construction or major renovations; the full value of improvements is added immediately.
Transitional Assessed Value
Larger Class 2 buildings (more than 10 units) and all Class 4 properties get assessment changes phased in over five years, 20% of the change per year. If the transitional assessed value is lower than the actual assessed value, the city uses the lower figure for your bill.5NYC Department of Finance. Determining Your Transitional Assessed Value
The Notice of Property Value
Every January, the Department of Finance mails a Notice of Property Value showing its estimate of market value and the assessed value that will drive the tax year starting July 1. It is not a bill, but it is where the numbers behind your bill first appear.6Department of Finance. Notice of Property Value
Exemptions and Abatements That Lower the Bill
An exemption reduces your assessed value before the rate is applied. An abatement is a dollar credit subtracted after the tax is calculated. Qualifying for either can meaningfully cut what you owe.
STAR (School Tax Relief)
STAR reduces your school tax burden if you own and live in your primary residence and combined household income is $500,000 or less. Basic STAR is open to all eligible homeowners; Enhanced STAR provides a larger benefit for homeowners aged 65 or older with income of $110,750 or less for the 2026–2027 school year.7New York State Department of Taxation and Finance. Types of STAR The STAR exemption on your school tax bill is no longer available to new homeowners. If you bought after 2015, you get the STAR credit instead, delivered as a check or direct deposit. The approximate annual exemption benefit in the city is around $293.8New York State Department of Taxation and Finance. STAR Resource Center
Senior Citizen Homeowners’ Exemption (SCHE)
If you’re 65 or older and own a one-, two-, or three-family home, condo, or co-op as your primary residence, SCHE can cut your assessed value by up to 50%. Combined annual income of $50,000 or less earns the full 50% reduction. The benefit then slides down in steps; income between $57,500 and $58,399 qualifies for a 5% reduction, and no benefit is available once income exceeds $58,399.9New York City Department of Finance. Senior Citizen Homeowners’ Exemption (SCHE)
Disabled Homeowners’ Exemption (DHE)
DHE uses the same income thresholds and the same sliding scale from 50% down to 5%, but it applies to homeowners with qualifying disabilities regardless of age. Combined annual income of all owners and spouses cannot exceed $58,399. You cannot receive both SCHE and DHE; if you qualify for both, the city applies SCHE.10New York City Department of Finance. Disabled Homeowners’ Exemption (DHE)
Veterans Exemptions
Veterans who served during a designated period of conflict, from the Mexican Border Period through the ongoing Persian Gulf conflict, may qualify for exemptions on their residential property. Additional reductions are available for combat veterans and those with VA-recognized service-connected disabilities.11New York State Department of Veterans’ Services. Property Tax Exemptions for Veterans
Co-op and Condo Abatement
Owners of co-op and condo units used as a primary residence can receive a direct credit against their tax. The percentage depends on the average assessed value of all residential units in the development:
- $50,000 or less: 28.1%
- $50,001–$55,000: 25.2%
- $55,001–$60,000: 22.5%
- $60,001 and above: 17.5%
The abatement is applied automatically in most cases, but eligibility turns on the unit being your primary residence.12New York City Department of Finance. Cooperative and Condominium Property Tax Abatement
Clergy Exemption
Members of the clergy, and the unremarried surviving spouses of clergy members, can receive a reduction in assessed value of up to $1,500 per year on property they own and occupy as a primary residence.13NYC311. Clergy Property Tax Exemption
When Bills Arrive and How to Pay
How often you’re billed depends on your assessed value. Properties assessed at $250,000 or less get quarterly bills, due July 1, October 1, January 1, and April 1. Properties assessed above $250,000 are billed semi-annually, due July 1 and January 1.14New York City Department of Finance. Property Tax Due Dates
You can pay online through the Department of Finance’s property tax portal, mail a check with your borough, block, and lot number included, or pay in person at a business center. If a bank or mortgage company handles your escrow, it receives the bill directly.
What Happens If You Pay Late
Interest starts accruing the day a payment is missed. For the fiscal year running July 1, 2025 through June 30, 2026:
- Assessed value $250,000 or less: 6% annual interest
- $250,001–$450,000: 9% annual interest
- Over $450,000: 16% annual interest
These rates are set each year by local law.15New York City Department of Finance. Late Payments
If you fall far enough behind, the city can sell your tax lien to a private trust. The new lienholder can add interest and fees, and about $300 in administrative costs for advertising and notices get added to your balance. The city notifies you within 90 days of the sale with the lienholder’s contact information.16NYC.gov. Lien Sales Prolonged nonpayment can also lead to in rem foreclosure through state Supreme Court, with multiple warning notices along the way.17NYC311. In Rem Foreclosure
If you can’t pay in full, the Department of Finance offers payment plans. A standard plan runs monthly or quarterly for up to 10 years. The PT AID (Property Tax and Interest Deferral) program lets eligible homeowners defer all or part of their taxes based on income. A reduced-interest plan is available to Class 1 homeowners with assessed value of $250,000 or less, household income of $200,000 or less, and at least one year of primary residency; the interest rate on that plan is 2.5% instead of the standard 6%. Missing six months of combined installment and new-charge payments defaults the plan, makes the property eligible for lien sale, and blocks you from entering a new agreement for five years.18NYC Department of Finance. Property Payment Plans
Challenging the Value Behind the Rate
You can’t negotiate the rate itself, but you can challenge the market value or classification that produced your assessed value. Applications go to the New York City Tax Commission, an independent agency.19Tax Commission. Forms
For the 2025–2026 tax year, Class 2, 3, and 4 applications are due by March 2, 2026, and Class 1 applications by March 16, 2026. Class 1 owners file Form TC108, Class 2 and Class 4 owners (other than condominiums) use Form TC101, and owners of rent-producing properties file Form TC201.20NYC.gov. Application Forms
Your application needs evidence that your market value was overestimated or your class was wrong. The Tax Commission may offer a reduction or schedule a hearing. If you reject the offer or the Commission confirms the original assessment, you can escalate to state Supreme Court through an Article 7 tax certiorari petition. For the 2025–2026 tax year, the court filing must be made by October 24, 2025, which can fall before the Commission finishes its review, so many owners file the petition as a protective step and withdraw it if the Commission resolves things favorably.21NYC Tax Commission. Challenging Notice of Property Valuation
Hiring an appraiser to support a residential case typically runs between $625 and $1,000. A $50,000 overstatement of market value on a Class 1 home works out to roughly $600 per year in excess taxes at current rates, so the math improves across multiple years.