Updated September 2026. The city has still not adopted tax rates for the 2026-27 fiscal year, so bills are charged at the 2025-26 rates until the City Council votes. The other new item this cycle is the non-primary residence surcharge, first charged on the bill due January 1, 2027, with an exemption deadline of October 6, 2026. The surcharge, explained covers the notice behind it.

A New York City property tax bill is the output of a five-part machine: the Department of Finance estimates what a property is worth, converts that into an assessed value at a fixed ratio, caps or phases in the change, subtracts exemptions, and multiplies what is left by the rate for the tax class. The sequence runs a year ahead of the money, and the part an owner most often argues with is the value. Our primers Assessment Basics Part I and Part II carry the worked arithmetic.

What are the four NYC property tax classes?

Every lot sits in one of four classes, and the class decides both the valuation method and the rate:

The sub-class split matters: only 2a, 2b and 2c carry assessment caps, so an 11-unit rental has none and is phased in instead, as our summary of the assessment caps explains.

How does the Department of Finance decide what a property is worth?

The method changes with the class, which explains most of the confusion around the words “market value” on a notice. For one-, two- and three-unit homes, Finance uses statistical modeling of prices of similar properties sold in the neighborhood in the prior three years.

For class 2, state law mandates valuation as income-producing, and requires co-ops and condos to be valued as if they were rental buildings even though they are not income-producing. For a larger rental, Finance estimates net income from the filed income and expense data and applies a capitalization rate. Class 4 is valued on income earning potential and expenses, class 3 utility property on replacement cost plus land value.

The income data comes from the owner. Anyone with income-producing property assessed above $40,000 on the tentative roll must file a Real Property Income and Expense statement or a claim of exclusion, and filers at $750,000 or more add a rent roll. RPIE-2025 was due June 1, 2026, and Finance builds the valuation on that filing, so a careless RPIE is a self-inflicted assessment.

How is NYC property tax calculated?

Five steps, in Finance’s own order. Market value comes first. Assessed value is market value times the level of assessment: 6% in class 1, 45% in classes 2, 3 and 4.

Then the limits. A class 1 assessment cannot rise more than 6% in one year or 20% over five. Classes 2a, 2b and 2c, buildings of ten units or fewer, cannot rise more than 8% a year or 30% over five. Finance’s own example: market values of $100,000, $150,000 and $140,000 give capped assessed values of $6,000, $6,360 and $6,741, against $6,000, $9,000 and $8,400 uncapped. An assessed value can therefore keep climbing in a year when market value falls.

Then the phase-in. All class 4 property, and class 2 co-ops, condos and rentals above ten units, phase changes in at 20% a year, producing a transitional assessed value alongside the actual one. Taxable value is the lower of the two, minus exemptions.

Then the rate. Taxable value times the class rate gives the tax, and abatements come off that result. Under a cap, the assessed value divided by 6% for class 1, or by 45% for 2a, 2b and 2c, gives the effective market value. That figure, not a sale price, is what an appeal must beat.

What is the NYC property tax rate?

The most recent rates Finance publishes are labelled tax year 2026, the fiscal year that ended June 30, 2026: class 1 at 19.843%, class 2 at 12.439%, class 3 at 11.108%, class 4 at 10.848%.

No 2026-27 rate is published as of September 2026, and Finance says so in this year’s Class 1 guide: “We cannot calculate your 2026-27 property tax until the new tax rate is established by the city council. Until then, you will pay the 2025-26 rate.” A new tax year starts at the previous year’s rate if the new one has not been adopted by June 6, rates are frequently not finalized until November, and the first part of the year is then recalculated. Any page quoting a firm 2026-27 rate today is quoting last year’s.

When are NYC property taxes due?

Quarterly payers get a grace period to the 15th; past it, interest runs from the original due date. Paying early earns a discount: 0.50% of the year’s tax if the full year is paid by July, 0.33% on the last three quarters if paid by October, 0.17% on the last six months if paid by January. Bills are posted about a month ahead, and go to the bank or mortgage company where one pays the taxes.

Where do you look up a NYC property tax bill or a property?

The Property Information Portal holds the assessment and property record for any lot, including the tentative value for the coming year. Finance’s Property Tax Public Access portal searches by address or borough-block-lot number and holds the tax bills, Notices of Property Value, tax class, market value and exemptions on the account. Our guide to the Notice of Property Value takes that notice line by line.

Which exemptions and abatements reduce a NYC property tax bill?

Two mechanisms, often confused: an exemption reduces assessed value before the tax is calculated, an abatement reduces the tax after.

The exemptions include STAR, now run by New York State since Finance no longer administers it; the Senior Citizen Homeowners’ Exemption, where all owners must be 65 or older unless they are spouses or siblings, combined income cannot exceed $58,399, and the date to apply or renew is March 15; the Disabled Homeowners’ Exemption, which cannot be held alongside SCHE; and the veterans, clergy and non-profit exemptions. The 421-a family is an exemption too, whatever people call it, and J-51 was both an exemption and an abatement; the abatements proper include the co-op and condo abatement and ICAP: see which properties are eligible for ICAP and NYC tax abatements explained.

The co-op and condo abatement is different, because unit owners cannot apply for it. The board or its agent applies for the whole development, and the benefit runs from 28.1% of the tax where average assessed value is $50,000 or less down to 17.5% at $60,001 and above. The unit must be the owner’s primary residence, bought on or before January 5 for the tax year starting that July.

One new line runs the other way. Under a law effective May 28, 2026, the non-primary residence surcharge reaches one- to three-family homes Finance values above $5 million, and condo or co-op units it values at $1 million or more, for tax years 2026-27 and 2027-28. Rates are 0.8%, 1.05% and 1.3% of market value for homes, 4.0%, 5.25% and 6.50% for units. It does not apply where the property is the primary residence of the owner, a tenant or subtenant, a majority interest holder in the owning entity, an immediate family member or the sole beneficiary of a trust, but that exemption has to be claimed. Background sits in what a pied-a-terre is in New York.

How do you challenge a NYC property assessment?

Two agencies, two filings, not interchangeable. Finance handles a wrong property description or market value on a Request for Review, due March 15 for class 1 and April 1 for everything else, and says in terms that it is not a substitute for appealing the assessed value.

The appeal goes to the New York City Tax Commission, an independent agency that can reduce the assessment, change the tax class and adjust exemptions. An Application for Correction must be received by March 1 for classes 2, 3 and 4, or March 15 for class 1, and later applications will not be granted. If the property has an effective market value, the case turns on proving it is worth less than that figure. From there the path runs to court, which is tax certiorari. The full sequence is in our guide to the property tax appeal process in New York City.

What does it cost to ask MGNY?

Nothing. A real person answers at (212) 343-1111, right away, and the consultation is free. You engage us only if you want the work handled for you. MGNY has worked NYC property tax since 2008, across 900+ tax abatement developments, with $23.6M in tax refunds secured for owners.

Sources: NYC Department of Finance pages on property tax rates, assessments, market and assessed value, assessment definitions, the Notice of Property Value, bills and payments, due dates, RPIE, tax benefits (SCHE, STAR, the co-op and condo abatement), challenging your assessment and the non-primary residence surcharge, all read September 2026; the Class 1 and Class 2 Property Tax Guides for 2026-27; the Finance press release of January 15, 2026 on the Fiscal Year 2027 tentative roll; and the NYC Tax Commission page on challenging the Notice of Property Value plus its 2025 Annual Report, read September 2026. MGNY Consulting is a private consulting firm and is not affiliated with the NYC Department of Finance or the NYC Tax Commission.

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