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About the rates used: This calculator uses the FY 2026 interim rates published by the NYC Department of Finance in July 2025: Class 1 = 20.630%, Class 2 = 12.340%. The City Council revised rates on October 29, 2025 (Chapter 487 of 2025) using a 1% Class Shares Cap, slightly lowering Class 1 and raising Class 2. For the precise figure on your actual bill, check the NYC Department of Finance property tax rate page or your most recent quarterly statement. The methodology and assessment caps below are unchanged.
How NYC property tax actually works
NYC property tax has three steps: figure out the property's assessed value, apply the tax rate for the property's class, subtract any abatements. The headline rate (20.6% for Class 1, 12.3% for Class 2) is dramatic and misleading — it's the rate applied to the assessed value, not the market value.
Class 1: 1–3 family homes
Class 1 homes are assessed at 6% of market value, with statutory caps that limit annual assessment growth to 6% per year and 20% over five years. So even when your home's market value goes up sharply, your assessed value (and therefore your bill) is held back by the cap. A $1 million Class 1 home has an assessed value around $60,000, and at the FY 2026 interim rate of 20.630% would owe about $12,378 per year.
Class 2: condos, co-ops, 4+ unit residential
Class 2 is more complicated. The headline assessment ratio is 45% of market value for buildings with more than 10 units. But the city values condos and co-ops using the income approach — treating the property as if it were a rental — instead of using sale comps. For high-end Manhattan condos that get virtually no rental comps, this systematically understates assessed value, often by 70–90% versus actual sale price. That's why a $5 million Manhattan condo can have a property tax bill that looks more like a $1.5 million house in Queens — the math is technically correct, but the underlying valuation methodology is generous.
For small co-ops and condos in buildings with 10 or fewer units, the assessment caps from Class 1 apply (6% annual / 20% over five years), even though the rate is the Class 2 rate. This calculator uses the standard ratios; if your building has unusual treatment, your DOF bill is the source of truth.
What this calculator does NOT include
- STAR / Enhanced STAR exemption — typical savings $300–$1,500/year for owner-occupants.
- SCHE (Senior Citizen Homeowners' Exemption) — up to 50% reduction in assessed value for income-eligible seniors.
- DHE (Disabled Homeowners' Exemption).
- 421-a / 421-g / J-51 abatements common on newer condos.
- Co-op / condo abatement (17.5–28.1% reduction depending on average assessed value per unit).
- Veterans' exemption.
For most NYC owners, abatements reduce the bill below what's shown above. If you have any of these, your real bill will be lower. We're working on an abatement-aware version — for now, this gives you the unabated baseline.
Want to see how property tax stacks against your income tax? Read how NYC property tax compares to NYC income tax at typical earner income levels — useful when deciding whether to rent or buy in NYC.
FAQ
How is NYC property tax calculated for a condo or co-op?
NYC condos and co-ops are Class 2. The city multiplies market value by 45% (for 11+ unit buildings) to get assessed value, then multiplies assessed value by the Class 2 rate (12.340% interim FY 2026). Because condos and co-ops are valued using the income approach rather than recent sale comps, assessed values run far below true market value, especially for high-end Manhattan condos — making the effective tax rate often closer to 1% of market value than the headline 12%.
What is the NYC Class 1 property tax rate for 2026?
Interim FY 2026 Class 1 rate is 20.630% of assessed value. Final rate (revised October 29, 2025 by City Council resolution under Chapter 487 of 2025) is slightly lower. Class 1 covers 1-, 2-, and 3-family homes plus small mixed-use buildings.
Why is my actual bill lower than what's shown here?
Most likely because of an abatement or exemption — STAR, the co-op/condo abatement, SCHE, J-51, 421-a, or veteran's exemption. This calculator shows the unabated baseline. If you have any qualifying status, your real bill is lower.
When are NYC property taxes due?
Quarterly for most properties: July 1, October 1, January 1, April 1. Properties with assessed value over $250,000 are billed semi-annually (July 1 and January 1). DOF offers a small discount for paying the full year up front.