NYC Property Tax

New York City property tax is based on market value, and the city uses different rates for different classes of properties. The most common rate is for the county, city, and school district, but there are also rates for parks and other services. The city also has a real estate transfer tax and other special taxes. The city has a variety of exemptions that reduce the amount of property tax owed.

Each year, the Department of Finance (DOF) creates a final assessment roll based on the results of revaluations and other information. This final roll is used to generate property tax bills for the following year. The DOF then applies any exemptions or abatements that are on file, which will lower your assessed value. Exemptions include senior citizen, veterans, and clergy members’ exemptions and the STAR program for homeowners. In addition, the City of New York has a luxury pied-a-terre tax surcharge on homes and apartments that are not occupied by their owners or family members.

New York City property taxes are payable quarterly, and bills are mailed twice to four times yearly. For homeowners with mortgages, the taxes are often paid through an escrow account and are automatically deducted from the monthly mortgage payment. The City’s fiscal year runs from July 1 to June 30.

NYC Property Tax Rates 2024

• Class 1 – 20.309%
    
• Class 2 – 12.267%
    
• Class 3 – 12.755%
     
• Class 4 – 10.646%

Who Must Pay NYC Property Taxes?

NYC Property Tax payers include rental property owners and people who own property as a gift from an estate or a trust. However, New York offers tax exemptions and abatements for people who use their homes as their primary residence and for senior citizens, veterans, and others.

Real estate property taxes are based on the worth of land and buildings and are collected by local governments to fund municipal and school district services. These taxes differ across the United States, depending on the location, tax rate, and exemptions or abatements. In New York City, residents must pay both a city and a state tax and additional local rates.

If you buy a home in New York, you’ll also pay a transfer tax. This local tax is based on the property’s value and is payable by the seller. If you’re buying a million-dollar home, the transfer tax will be higher than if you bought a less expensive home.

New York’s property tax system is unfair and expensive, particularly for low-income households. The COVID-19 pandemic worsened the problem, driving higher housing prices for middle-class and working-class families. New York should move toward a fair and equitable property tax system. For example, the City should reduce ETRs for small homes, coops, and condos while ensuring that large homes face comparable rates.