Overview
New York City is one of a handful of cities in the United States that issues a property tax (separate from those payable to the state) on its property owners. These taxes fund a number of critical services, including police, fire, sanitation, education, transportation, housing, health and wellness programs, and parks and recreation. In 2018, nearly 44% of the tax dollars collected by the city was obtained through property tax payments.
Assessing Value
Each residential and commercial property in the city is assigned a value assessment by the New York City Department of Finance. Assessments are based on percentages of market value and can vary by property type. Property owners receive a tentative value assessment in January of each year. If they disagree with this assessment, property owners have a right to appeal it.
Determining Rate
Property tax rates are determined each year by the mayor and city council. Tax rates can vary depending on the property type. The tax rates are applied to property values to calculate the annual tax liability. Property tax rates are based on the tax class of the property owner. There are four tax classes.
Property Tax Bills
If the assessment is not challenged by the property owner, a final assessment is sent out and posted on the City’s Department of Finance Property Tax Public Access web portal in May. Owners who pay their tax bills independently can expect to receive their bills in June each year. If property taxes are handled by a bank or mortgage company through an escrow account, property owners will not receive a bill. Tax liability is divided into either two (semi-annual) or four (quarterly) payments, based on the assessed value of the property. Properties valued under $250,000 are billed for payments due July 1, October 1, January 1, and April 1. Property owners whose properties are valued above $250,000 can expect bills due on July 1 and January 1.
There are several types of exemptions and property tax reductions offered to taxpayers, including exemptions for veterans, the disabled, and senior citizens.. In addition, owners who occupy their own property may be eligible for the New York State STAR exemption.