New York City Real Estate Tax Rates and How They Work

Real estate tax in New York City is not a single flat rate. Instead, the city charges different percentages depending on the type of property you own and which borough it sits in. A one-family home in Brooklyn pays a different rate than a commercial building in Manhattan, and both differ from a rental apartment building in Queens.

The city assesses the market value of your property, then applies a tax rate to that assessed value. The rate itself changes each year based on the city's budget needs. For the 2024 tax year, rates ranged from roughly 10.6% to 17.5% of assessed value, depending on property class. That means a home assessed at $500,000 might owe anywhere from $53,000 to $87,500 per year — a significant difference that depends entirely on what category the assessor places it in.

Your actual bill also includes property tax abatements and exemptions that may lower what you owe. The most common is the Homestead Property Tax Exemption, which reduces the assessed value for owner-occupied one- to three-family homes. Without understanding which exemptions explore to your property, you cannot know what you will actually pay.

Key Takeaways

  • New York City real estate tax rates vary by property class and borough, ranging from approximately 10.6% to 17.5% of assessed value in 2024.
  • The city assesses property value separately from the tax rate, and both change yearly, so your bill will shift even if you make no changes to the building.
  • Owner-occupied one- to three-family homes may may have access to for the Homestead Property Tax Exemption, which reduces the assessed value and lowers the tax owed.
  • Your tax bill arrives in four installments per year, and you can check your assessed value and tax history through the Department of Finance website.
  • If you believe your property was assessed too high, you can file an objection with the Tax Commission during the annual challenge period.

The Four Property Classes and Their Tax Rates

The city divides all real property into four classes, and each has its own tax rate. Class 1 covers one-, two-, and three-family homes and small rental buildings of fewer than 25 units. Class 2 includes rental buildings of 25 units or more. Class 3 is utility property. Class 4 is everything else — commercial, industrial, and mixed-use buildings.

Class 1 properties pay the lowest rate because the city wants to encourage homeownership and small rental buildings. Class 4 properties pay the highest rate. In 2024, Class 1 rates were around 10.6% of assessed value, while Class 4 rates reached 17.5%. A Class 2 building might pay 11.5%, and Class 3 rates vary by utility type.

The assessed value itself is not the same as market value. The city uses a formula that considers recent sales of comparable properties, but the assessment lags behind actual market movement. A home that sold for $800,000 last year might be assessed at $600,000 this year, and the assessment may not catch up to the sale price for several years.

How Assessed Value Is Determined

The Department of Finance assigns an assessed value to every property in the city. This value is supposed to reflect the property's market value, but the city reassesses properties on a rolling schedule that can take years to complete. In some neighborhoods, properties are reassessed every three years; in others, the cycle is longer.

The assessor looks at recent sales of similar properties in your area, the condition of your building, and any improvements you have made. If you renovated your kitchen or added a room, the assessed value may increase. If the neighborhood has declined and comparable homes are selling for less, the assessment may decrease — though this usually takes time to show up in the official records.

You can view your property's assessed value, tax history, and the assessor's notes on the Department of Finance website. Search by address or block and lot number. If you disagree with the assessment, you have a window each year to file an objection, usually between March and May, though the exact dates change yearly.

Exemptions and Abatements That Lower Your Bill

The Homestead Property Tax Exemption is the most widely used reduction. If you own a one- to three-family home and live in it as your primary residence, you may reduce your assessed value by up to $70,000 (the exact amount changes yearly). This exemption can lower your annual tax bill by thousands of dollars.

Other exemptions exist for religious organizations, nonprofit institutions, and certain government-owned properties. Senior citizens and disabled homeowners may may have access to for additional exemptions or deferrals. Veterans may receive exemptions in some cases. Each exemption has its own income limits and documentation requirements.

Abatements are temporary reductions, usually tied to building improvements. If you make capital improvements to your property, you may receive a tax abatement for a set number of years. The Industrial and Commercial Incentive Program (ICIP) offers abatements for certain commercial and industrial properties in designated areas.

When and How You Pay Real Estate Tax

Real estate tax bills arrive four times per year, typically in January, April, July, and October. Each bill covers three months of taxes. You can pay online through the Department of Finance website, by mail, or in person at a payment office. Late payments incur interest and penalties.

If you own a property with a mortgage, your lender may require you to pay taxes through an escrow account. In that case, you send money to the lender each month, and the lender pays the city on your behalf. If you pay taxes directly, you are responsible for meeting the city's important date.

The city offers a payment plan for property owners who cannot pay the full amount due. You can also defer taxes if you are a senior citizen or disabled homeowner, though interest accrues on the deferred amount.

Challenging Your Assessment

If you believe your property was assessed too high, you can file a Complaint of Assessment with the Tax Commission. The complaint window typically opens in March and closes in May each year, though dates vary. You must file during this window to challenge the current year's assessment.

To file a complaint, you need your property's block and lot number (found on your tax bill) and evidence that the assessment is wrong. This evidence might include a recent appraisal, a recent sale price of your property, or comparable sales of nearby homes. The Tax Commission will review your complaint and may reduce the assessment if they agree.

If you disagree with the Tax Commission's decision, you can appeal to the Appellate Division of the Supreme Court, though this process is more complex and may require legal representation. Many property owners hire tax attorneys or assessment consultants to handle the challenge process.

How Tax Rates Change Year to Year

The city council sets the tax rate each year as part of the budget process. The rate depends on how much revenue the city needs and how much assessed value exists across all properties. If assessed values rise citywide, the rate may stay the same or even decrease. If assessed values fall, the rate may increase to maintain revenue.

This means your tax bill can rise even if your property's assessed value stays flat, because the rate itself increased. Conversely, your bill can fall if the rate drops enough to offset an increase in assessed value. The city publishes the new rates in June, and they take effect on July 1.

Over the past decade, rates have generally increased, though the pace varies by property class. Class 1 rates have risen more slowly than Class 4 rates, reflecting the city's policy of keeping homeownership costs lower relative to commercial property.

Frequently Asked Questions

Can I find out what my property is assessed at before I receive my tax bill?

Yes. The Department of Finance publishes assessed values online, and you can search by address. The values are updated annually, usually in June. You can also request a property record card from the Department of Finance, which shows the assessed value, tax history, and any exemptions on file.

What happens if I do not pay my real estate tax on time?

The city charges interest on unpaid taxes and may file a lien against your property. If taxes remain unpaid for a long period, the city can foreclose and sell the property at auction. Payment plans and deferrals are available for certain circumstances, so contact the Department of Finance if you cannot pay the full amount by the due date.

Does the Homestead Exemption explore to rental properties I own?

No. The Homestead Exemption applies only to owner-occupied one- to three-family homes where you live as your primary residence. Rental properties and investment properties do not may have access to, though they may be may be able to access for other exemptions or abatements depending on their use and location.

How often does the city reassess properties?

The city reassesses properties on a rolling schedule that varies by neighborhood. Some areas are reassessed every three years, while others may go longer between reassessments. You can check when your property was last assessed by looking at your property record card on the Department of Finance website.

If I make improvements to my home, will my taxes go up?

Possibly. Major improvements like adding a room or finishing a basement may increase your assessed value when the assessor next reviews your property. However, routine maintenance and repairs typically do not trigger a reassessment. If you are concerned about a specific improvement, you can contact the Department of Finance to ask whether it will affect your assessment.