Last updated 2026-07-09
TL;DR
New York City property taxes are calculated on a fraction of your assessed value, not full market value, using four property classes with different tax rates. For 2024-25, Class 1 (one-to-three-family homes) carries a rate of about 20.085% applied to assessed value, which equals roughly 6% of market value. Bills go out twice a year. You can appeal through the NYC Tax Commission every year.
What is a property tax, and how does NYC define it?
A property tax is an annual levy a local government charges on real estate you own. The government estimates what your property is worth, applies a percentage of that value as a tax, and you pay. Simple concept. NYC execution, not so simple.
New York City runs its own property tax system entirely separate from New York State. The city collects roughly $32 billion per year in property tax revenue, making it the single largest source of city revenue, accounting for about 44 cents of every dollar the city spends [1]. That money funds schools, police, fire, sanitation, and debt service.
What makes NYC unusual is a four-class system codified in New York Real Property Tax Law Article 18 [2]. Every parcel in the five boroughs gets assigned to one of four classes, and each class has its own assessment ratio, its own tax rate, and its own set of rules about how fast assessed value can change from year to year. Two neighbors on the same block can pay wildly different effective tax rates as a share of their home's actual market value. That's not a bug in the system. It's a feature the state legislature deliberately built in, and it's been the subject of litigation and reform proposals for decades.
What are the four NYC property tax classes?
The four classes are the skeleton of the whole system. Figure out which class your property lands in first. Everything else follows from that.
| Class | What it covers | 2024-25 Tax Rate |
|---|---|---|
| Class 1 | 1-3 family residential homes, condos assessed under Class 1 rules | 20.085% |
| Class 2 | Rental buildings (4+ units), cooperatives, condominiums not in Class 1 | 12.267% |
| Class 3 | Utility real property | 12.755% |
| Class 4 | All commercial and industrial property | 10.646% |
Source: NYC Department of Finance, Fiscal Year 2024-25 [3]
Those rates look enormous, and they are, but you do not apply them to market value. You apply them to assessed value, which is a fraction of market value. For Class 1 properties, the city targets an assessment ratio of 6% of market value. For Class 2 and 4, the state-mandated ratio is 45% of market value, though the city applies transitional assessments to cushion year-over-year swings [2].
So a Class 1 home with a $900,000 market value might have an assessed value of roughly $54,000. Apply the 20.085% rate to $54,000 and you get about $10,846 in annual tax before any exemptions. A Class 4 office building assessed at 45% of market value faces a lower nominal rate but a much heavier effective burden, because the assessed fraction is so much larger.
How much is property tax in NYC, really?
The effective tax rate (what you actually pay as a share of market value) swings enormously by class, location, and exemptions. The NYU Furman Center has documented the gap in detail. A 2021 Furman Center analysis found that Class 1 homeowners often pay effective rates around 0.5% to 0.9% of market value, while large rental buildings can face effective rates above 3% of market value [4].
For a practical reference point, the NYC Department of Finance publishes average rates in its annual reports. For FY 2024-25, the average effective tax rate across all classes ran roughly 0.88% of estimated market value citywide, but that average hides a wide spread [3].
Here is what actually drives your bill:
1. Your property's market value as estimated by the Department of Finance. 2. Your class's assessment ratio (6% for Class 1, targeting 45% for Class 2 and 4). 3. The assessed value cap rules. Class 1 assessed value cannot rise more than 6% in one year or 20% over five years, regardless of market movement [2]. 4. Any exemptions you qualify for (STAR, senior exemption, veteran's, disability, and so on). 5. The class tax rate set each year by the City Council.
The capping rule is the big one. Long-tenured Class 1 owners in rapidly appreciating neighborhoods often carry assessed values far below the 6% target, paying effective rates well under 0.5% of current market value. A recent buyer on the same block pays full freight from day one.
How do I get my NYC property tax bill for 2025?
Your property tax bill for the 2024-25 fiscal year (which NYC calls fiscal year 2025, running July 1, 2024 through June 30, 2025) is available online through the NYC Department of Finance property tax portal [5].
Go to nyc.gov/finance and use the Property Tax section to search by address or Borough-Block-Lot (BBL) number. The system shows your current assessed value, any exemptions applied, the tax rate, and your exact bill amount with due dates. You do not need an account to look up your own property.
Paper bills go out automatically. The city mails them roughly 30 days before each payment due date. If you pay through a mortgage escrow account, your lender gets the bill electronically and you may never see a paper copy. Verify the numbers yourself anyway. You should.
For a property purchased or transferred after the bill mailing, the DOF website is the fastest way to confirm what is owed. The NYC Finance online portal also lets you set up electronic billing, see payment history, and pay directly [5]. For a broader look at how online tax payment works across jurisdictions, see our guide to online tax payment for property.
Want to understand how your market value estimate was reached? The Notice of Property Value (NOPV) mailed each January is the document to read. It shows the market value estimate, the assessed value, and any tentative changes for the coming fiscal year. That NOPV is also your starting gun for an appeal.
When are NYC property taxes due in 2025?
Payment schedules depend on your annual tax bill amount [5].
| Annual Bill Amount | Payment Schedule | Due Dates (FY2025) |
|---|---|---|
| $250 or less | Annual | July 1 |
| $250.01 to $1,000 | Semi-annual | July 1, January 1 |
| Over $1,000 (Class 2, 4) | Quarterly | July 1, Oct 1, Jan 1, Apr 1 |
| Over $1,000 (Class 1) | Quarterly | July 1, Oct 1, Jan 1, Apr 1 |
Class 1 and most Class 2 properties with bills over $1,000 pay quarterly, due on the first of July, October, January, and April. There is a 15-day grace period before a late charge applies. Interest on unpaid taxes accrues at 18% per year for most residential properties, and up to 18% for commercial properties [5].
Miss a payment and the city does not immediately move to lien sale. But unpaid taxes can be sold to third-party lienholders, and historically the city has run periodic tax lien sales that transfer the debt to private collectors. The NYC lien sale process has been in ongoing legislative debate, and the city has modified it several times since 2022. Check the current DOF guidance on lien sale exemptions if you have fallen behind [5].
How is your NYC assessed value calculated, and can you challenge it?
Every January the NYC Department of Finance mails a Notice of Property Value showing the tentative assessed value for the upcoming fiscal year [6]. For Class 1 homes, the DOF runs a mass-appraisal model comparing recent sales of similar properties in the same neighborhood. For larger Class 2 and Class 4 properties, they lean on the income approach: they estimate what a property would earn in rent, apply a capitalization rate, and derive a value from the resulting income stream.
The tentative assessment becomes final in May unless you challenge it. You have two paths.
First, an administrative correction. If the DOF made a factual error (wrong square footage, wrong lot dimensions, wrong building class), you file a correction application with the DOF directly. The deadline for most owners is March 1 for the upcoming fiscal year. No fee.
Second, a Tax Commission protest. The NYC Tax Commission is an independent agency separate from DOF. Filing a protest (officially called an application for correction of assessed value) asks the Commission to review whether the assessment exceeds market value or is unequal compared to similar properties. The deadline is March 1 for most properties, and March 15 for Class 1 properties [7].
The Tax Commission can approve a reduction, deny it, or offer a settlement. Reject the settlement or get denied, and you can go to court under Article 7 of the New York Real Property Tax Law. But at that point you are in litigation territory and attorney fees become real. Most homeowners settle or take the Commission's offer.
If you want to build your own case with sales comparables before filing, our property tax taxation overview explains how the income and sales-comparison approaches work in practice.
What exemptions reduce an NYC property tax bill?
NYC offers a slate of exemptions that can meaningfully cut your bill. These are the main ones for residential owners.
STAR (School Tax Relief). Basic STAR is available to homeowners with income up to $500,000 who use the property as a primary residence. Enhanced STAR goes to seniors 65 and older with income up to $98,700 (for the 2024-25 fiscal year; this threshold adjusts annually) [8]. New applicants since 2019 get STAR as a check from the state rather than an assessment reduction, but the dollar value is equivalent.
Senior Citizen Homeowner Exemption (SCHE). Owners 65 and older with combined household income up to $58,399 per year can get a property tax reduction of 5% to 50% depending on income tier [6]. This stacks with Enhanced STAR.
Disability Exemption. Similar income and age structure to SCHE, available to qualifying disabled homeowners [6].
Veterans Exemption. Basic veteran's exemptions reduce assessed value by amounts ranging from a few hundred to several thousand dollars depending on service period and disability rating [6].
Clergy Exemption. A smaller reduction for active clergy.
Deadlines matter. Most exemption applications for FY2025 had a March 15, 2024 deadline. Miss it and you apply for FY2026, with applications typically due March 15, 2025. The DOF website has the current forms and income documentation requirements [6].
Do not assume your exemption renews automatically. SCHE and the disability exemption require annual income verification. Miss the renewal filing and you lose the benefit for a full year.
How do you appeal your NYC property tax assessment?
The NYC Tax Commission handles all assessment protests for all five boroughs. Here is the process in plain terms.
Step one is getting your NOPV in January. Read the market value estimate. Compare it to what you think the property would actually sell for, or what recent sales of similar nearby properties show.
Step two is gathering evidence. For Class 1 properties, the strongest evidence is recent arm's-length sales of comparable homes (same neighborhood, similar size, similar condition) selling for less than your implied market value. The DOF's own sales database is publicly searchable through the ACRIS system on nyc.gov [9]. Pull three to six sales from the prior 12 months if you can find them.
Step three is filing the protest. For Class 1 and Class 2 properties with assessed values under $2 million, you file Form TC200 with the Tax Commission. For larger properties, Form TC201 (income-producing) or TC209 (cooperatives) applies [7]. Filing is free. The deadline for most Class 1 properties is March 15. For Class 2, 3, and 4 it is March 1.
Step four is the review. The Tax Commission reviews your filing and either schedules a hearing or makes an offer. For small Class 1 properties, many cases resolve by paper review with no hearing required.
Step five is your decision. Accept the offer (or a no-change determination) and the result applies for one year. Reject it and you have the right to file an Article 7 proceeding in State Supreme Court within 30 days of the final determination.
TaxFightBack's DIY appeal kit walks through each form and the comparable-sales analysis step by step, so you keep 100% of whatever reduction you win instead of splitting it with a contingency firm. The kit covers both the TC200 and the evidence package the Tax Commission actually finds persuasive.
For comparison, see how homeowners in other major cities structure their appeals: Miami-Dade property taxes and LA County property tax both have relatively accessible DIY processes worth studying.
How does the NYC property tax system compare to other major cities?
NYC is unusual in ways that make comparison tricky. Most jurisdictions apply one tax rate to one assessed value. NYC applies four different rates to four different assessed fractions of market value, with growth caps that create divergence over time. The result is an effective rate distribution that looks nothing like what the official rate tables suggest.
A few reference points from publicly available data [4][3]:
| City | Typical effective rate for single-family home | Notes |
|---|---|---|
| New York City | 0.5% to 0.9% of market value | Class 1; highly variable by tenure |
| Los Angeles | ~1.1% of purchase price | Prop 13 locks in base at purchase |
| Miami-Dade | ~1.0% of market value | Homestead exemption reduces it |
| Chicago | ~1.5% to 2.5% of market value | Very high by national standards |
| Houston | ~2.1% of market value | No income tax trade-off |
For most Class 1 homeowners who bought more than five years ago and rode the appreciation, NYC effective rates are actually low against the national average. The inequity the system produces is horizontal: a new buyer in Flatbush pays a higher effective rate than a 20-year owner of a nearly identical home on the same block, purely because of the assessment cap mechanics.
If you own property in multiple markets, our overviews of Maricopa property tax and Santa Clara property tax show how those very different systems calculate effective rates.
What is the NYC property tax reform situation, and does it affect you now?
New York City's property tax system has been under formal review since at least 2018, when Mayor de Blasio convened the Advisory Commission on Property Tax Reform. The commission issued a preliminary report in 2020 recommending large changes to Class 1 and Class 2 assessments, including a shift toward market-value-based assessment with circuit-breaker protections for longtime owners [10]. Those recommendations were never enacted.
In 2022 and 2023, the state legislature took up reform proposals that would move condominiums and co-ops into a single residential class with small homes. As of mid-2025, no reform bill has passed. The four-class structure remains unchanged.
What this means for you right now: do not wait for reform to fix an inflated assessment. File a Tax Commission protest every year you believe your assessment exceeds market value. Reform, if it ever passes, is unlikely to be retroactive. The Tax Commission appeal window is the only lever you have today.
One thing that has changed recently is transparency. The DOF now publishes more granular neighborhood-level sales data and has improved the online portal for accessing comparable sales, which makes building a DIY appeal case easier than it was five years ago [9].
What are the biggest mistakes NYC homeowners make with property taxes?
Missing the appeal deadline is the most common. The March 15 deadline for Class 1 properties is firm. The Tax Commission does not accept late filings. Miss it and you wait a full year.
Assuming the bill is correct. The DOF uses mass appraisal models with real error rates. Comparable-sales databases lag. A property's condition after a flood, fire, or extended vacancy may not show up in the estimate. Always check the implied market value on your NOPV against actual recent sales in your area.
Skipping exemptions you qualify for. Senior exemptions in particular go unclaimed at high rates in NYC, partly because the application process is not automatic and the income thresholds get little publicity. The SCHE exemption alone can cut 10% to 50% off a qualifying senior's bill.
Paying a contingency firm for a Class 1 appeal. Contingency firms typically charge 30% to 50% of one year's tax savings. For a Class 1 home, the Tax Commission process is genuinely straightforward: you fill out a one-page form and attach three to six comparable sales. The forms are free. The filing is free. Handing a firm 40% of your savings is expensive when the alternative is an afternoon's work.
Not verifying your property class. If your building was reclassified, your tax exposure could shift hard. Check your BBL record on the DOF portal every year [5].
For owners of investment or commercial properties, the stakes are higher and professional help may be worth it. Class 4 appeals built on income analysis can involve thousands of pages of financials. But for the typical one-to-three-family homeowner, DIY is the right call.
Frequently asked questions
How much is property tax in NYC for a typical home?
For a Class 1 one-to-three-family home, the effective tax rate typically runs between 0.5% and 0.9% of market value, depending on how long you have owned the property and what exemptions you have. On a $900,000 home assessed at 6% of market value ($54,000), the 20.085% Class 1 rate produces a bill of roughly $10,846 per year before exemptions. Long-term owners with capped assessed values often pay less.
What is a property tax, in simple terms?
A property tax is an annual charge from your local government based on the estimated value of real estate you own. In NYC, the city estimates your property's market value, applies a class-specific fraction to get an assessed value, then multiplies by the tax rate for your class. The four classes each have different rates and assessment ratios, so the math varies significantly by property type.
How do I get my NYC property tax bill for 2025?
Go to nyc.gov/finance and use the Property Tax lookup tool. Search by address or your Borough-Block-Lot number. The portal shows your current assessed value, any exemptions, the tax rate applied, your bill total, and your payment due dates. Paper bills also arrive by mail about 30 days before each due date. If taxes are paid through mortgage escrow, your lender receives the bill but you can still look it up online.
What are the NYC property tax due dates in 2025?
For properties with annual bills over $1,000, taxes are due quarterly on July 1, October 1, January 1, and April 1. Bills between $250 and $1,000 are due semi-annually on July 1 and January 1. Bills under $250 are due annually on July 1. There is a 15-day grace period before late charges apply. Interest on unpaid taxes accrues at 18% per year for most residential properties.
How do I appeal my NYC property tax assessment?
File a protest with the NYC Tax Commission using Form TC200 (Class 1 or small Class 2) or TC201/TC209 for larger properties. The deadline is March 15 for Class 1 and March 1 for Classes 2, 3, and 4. Filing is free. Attach evidence: recent comparable sales from the DOF's ACRIS database showing your implied market value is too high. The Tax Commission will review and either make a settlement offer or schedule a hearing.
What is the NYC property tax rate for 2024-25?
The NYC Department of Finance set the following rates for FY2024-25: Class 1 (small homes) 20.085%, Class 2 (larger residential/co-ops/condos) 12.267%, Class 3 (utilities) 12.755%, and Class 4 (commercial/industrial) 10.646%. These rates apply to assessed value, not market value, so the effective rate as a percentage of market value is much lower, typically under 1% for Class 1 homeowners.
What exemptions can reduce my NYC property tax bill?
The main ones are: Basic STAR (income up to $500,000, primary residence), Enhanced STAR (seniors 65-plus with income up to $98,700 for FY2025), the Senior Citizen Homeowner Exemption (SCHE, up to 50% reduction for seniors with income under $58,399), the Disability Exemption, and the Veterans Exemption. Most require annual or periodic renewal filings. The deadline for most exemptions is March 15 each year at the NYC Department of Finance.
What is the Notice of Property Value and why does it matter?
The Notice of Property Value (NOPV) is a document the NYC Department of Finance mails every January showing your property's tentative market value estimate and assessed value for the upcoming fiscal year. It is your starting point for any appeal. If the market value shown is higher than what comparable properties actually sell for, you have grounds for a Tax Commission protest. The filing deadline runs from that January mailing.
Can I appeal NYC property taxes every year?
Yes. You can file a Tax Commission protest every year during the annual filing window, which opens when the tentative assessments are published in January and closes March 1 or March 15 depending on property class. There is no limit on how many years you can file. If market values have dropped or your assessed value has crept up, a fresh protest each year is reasonable. There is no penalty for filing and losing.
How does the NYC property tax assessment cap work for Class 1 homes?
New York Real Property Tax Law limits increases in Class 1 assessed values to 6% per year and 20% over any five-year rolling period, regardless of how much market value increases. This protects long-term owners from sudden tax spikes in hot markets. The downside is that after years of below-cap increases, assessed value can be far below the 6% target ratio, which creates inequities between long-term owners and recent buyers.
What is the difference between market value and assessed value in NYC?
Market value is what the NYC Department of Finance estimates your property would sell for. Assessed value is the fraction of market value used to calculate your tax. For Class 1 properties, the city targets an assessed value of 6% of market value (and caps annual increases at 6%). For Class 2 and 4, the statutory ratio is 45% of market value. Multiplying assessed value by the class tax rate gives your tax before exemptions.
Does paying off my mortgage affect my NYC property tax?
No. Property taxes are owed regardless of whether you have a mortgage. The difference is administrative: if you have a mortgage, your lender typically collects monthly escrow payments and pays your tax bill on your behalf. Once you pay off the mortgage, you are responsible for making quarterly (or semi-annual, or annual) payments directly to the NYC Department of Finance. Missing a payment carries 18% annual interest.
How do NYC property taxes work for co-ops?
Co-ops are Class 2 properties. The building as a whole receives one tax bill based on its assessed value, and your share of that bill is determined by your ownership percentage (your unit's percentage of all shares). The building pays the tax and passes your share through as part of your monthly maintenance fee. You do not get a separate tax bill. If you want to challenge the assessment, the co-op's board typically needs to authorize the filing.
What happens if I do not pay my NYC property taxes?
Unpaid taxes accrue interest at 18% per year for most properties. After taxes are delinquent for a period the city can sell a lien on your property to a third-party lienholder through its lien sale program. That lienholder can eventually foreclose if the debt is not resolved. The city has modified lien sale exemptions in recent years for owner-occupied homes under certain income thresholds. Check the DOF lien sale exemption page for current eligibility rules.
Sources
- NYC Office of Management and Budget, Fiscal Year 2025 Adopted Budget: Property tax accounts for roughly 44% of NYC tax revenue, approximately $32 billion annually
- New York State Real Property Tax Law, Article 18 (McKinney's): Four-class property tax system, 45% assessment ratio for Classes 2 and 4, 6% annual cap and 20% five-year cap for Class 1 assessed value
- NYC Department of Finance, Property Tax Rates FY2024-25: FY2024-25 tax rates: Class 1 = 20.085%, Class 2 = 12.267%, Class 3 = 12.755%, Class 4 = 10.646%
- NYU Furman Center, New York City Property Tax Report, 2021: Effective property tax rates for Class 1 homeowners range from approximately 0.5% to 0.9% of market value; large rental buildings can face effective rates above 3%
- NYC Department of Finance, Property Tax Bills and Payments: Quarterly due dates of July 1, October 1, January 1, and April 1 for bills over $1,000; 18% annual interest on unpaid amounts; online portal for bill access and payment
- NYC Tax Commission, Assessment Challenge Forms and Instructions: Form TC200 for Class 1 and small Class 2; Form TC201 for income-producing properties; March 15 deadline for Class 1; March 1 for Classes 2, 3, 4
- New York State Department of Taxation and Finance, STAR Program: Basic STAR income limit $500,000; Enhanced STAR for seniors 65-plus with income up to $98,700 (FY2025 threshold)
- NYC Advisory Commission on Property Tax Reform, Preliminary Report, January 2020: Commission recommended moving toward market-value-based assessment with circuit-breaker protections for longtime owners; no legislation enacted as of 2025