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Updated 2025 Tax Year

New York County
Property Tax Guide

Everything you need to know about property taxes in New York County, NY. Rates, due dates, exemptions, and how it affects your monthly payment.

7 Official Sources
8 min read
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Quick Facts
Tax Rate
~1.4%
Exemptions
1+ Available
Section 1

How Property Tax Works

New York County (Manhattan) operates under New York City's property tax system, which is the primary funding mechanism for essential municipal services including public schools, police and fire departments, sanitation, parks, and infrastructure maintenance. The property tax system generates billions in revenue annually to support the city's operations and serves as the largest source of local government funding.

Property taxes in New York County are assessed based on a complex classification system with four tax classes, each with different assessment ratios and tax rates. The effective tax rate varies significantly depending on property type, with residential properties typically seeing lower effective rates than commercial properties. Property owners can expect effective rates ranging from approximately 0.7% to over 12% of market value, depending on the property class and specific circumstances. The assessment process is managed by the NYC Department of Finance, which determines property values and applies applicable exemptions.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Tax Year 2026)Description
Class 1 (1-3 family homes)~21.045%Small residential properties, coops, and condos
Class 2A (4-6 units)~12.721%Small apartment buildings
Class 2B (7-10 units)~12.721%Medium apartment buildings
Class 2C (2-10 units, elevator)~12.721%Elevator apartment buildings
Class 3 (Utilities)~10.694%Utility company properties
Class 4 (Commercial)~10.694%All other commercial and industrial properties

Note: These are nominal tax rates applied to assessed values, not market values. Actual effective rates are much lower due to assessment ratios.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in New York County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental property taxes in New York County are triggered by significant changes to property ownership, improvements, or corrections to assessments during the tax year. Common triggers include new construction completion, major renovations that increase property value, subdivision of properties, or corrections to previous assessment errors. The NYC Tax Commission handles supplemental assessments when properties undergo substantial changes that weren't reflected in the annual assessment.

Supplemental taxes are calculated by determining the difference between the new assessed value and the previous assessed value, then applying the current tax rate to this difference. The supplemental bill covers the period from when the change occurred through the end of the tax year. For example, if a $2 million renovation is completed on July 1st and increases the assessed value by $500,000, the supplemental tax would be calculated on that $500,000 increase for the remaining six months of the tax year, prorated accordingly.

Example Calculation

$300,000 Class 1 Property (Condo)

  • Market Value: $300,000
  • Assessment Ratio: 6%
  • Assessed Value: $18,000
  • Less STAR Exemption: -$1,230
  • Net Taxable Value: $16,770
  • Annual Tax (21.045%): $3,530
  • Monthly Escrow: $294

$600,000 Class 1 Property (Coop)

  • Market Value: $600,000
  • Assessment Ratio: 6%
  • Assessed Value: $36,000
  • Less STAR Exemption: -$1,230
  • Net Taxable Value: $34,770
  • Annual Tax (21.045%): $7,318
  • Monthly Escrow: $610

$1,000,000 Class 2 Property (Condo)

  • Market Value: $1,000,000
  • Assessment Ratio: 45%
  • Assessed Value: $450,000
  • Less Applicable Exemptions: -$5,000
  • Net Taxable Value: $445,000
  • Annual Tax (12.721%): $56,608
  • Monthly Escrow: $4,717

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Section 5

Escrow & Property Taxes

Most mortgage lenders in New York County require borrowers to maintain an escrow account for property tax payments, collecting monthly deposits along with principal and interest payments. Lenders typically collect 1/12th of the annual property tax amount each month, plus additional funds to maintain a cushion as required by federal regulations. Property taxes in NYC are billed quarterly, and lenders pay these bills directly from the escrow account when due.

Property owners should verify that their lender is making timely payments and that the escrow account has sufficient funds. The NYC Department of Finance provides online payment options and account management tools at https://www1.nyc.gov/site/finance/pay-now/pay-now.page. Lenders must provide annual escrow statements showing all deposits, payments, and account balances. If you pay your own property taxes without escrow, quarterly payments are due July 1, October 1, January 1, and April 1.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property tax payments due in New York County? A: Property taxes are due quarterly on July 1, October 1, January 1, and April 1. There's a grace period, but interest accrues on late payments.

Q: How do I qualify for the STAR exemption? A: The STAR program provides school tax relief for owner-occupied primary residences. You must apply through the NYC Department of Finance and meet income requirements.

Q: Can I appeal my property assessment? A: Yes, you can file a Tax Commission application if you believe your assessment is incorrect. The deadline is typically March 1st for the following tax year.

Q: What exemptions are available for seniors and veterans? A: Senior Citizens may qualify for property tax exemptions based on income, and veterans may be eligible for exemptions based on service-connected disabilities.

Q: How is my property's assessed value determined? A: The Department of Finance uses market analysis, comparable sales, and physical inspections to determine assessed values, applying different assessment ratios by property class.

Q: What happens if I don't pay my property taxes? A: Unpaid taxes accrue interest and penalties. After one year, the city may sell a tax lien, and properties can eventually face foreclosure.

Q: Can I pay my property taxes online? A: Yes, you can pay online, by phone, or by mail. Visit https://www1.nyc.gov/site/finance/property/property.page for payment options and account access.

Q: How do cooperative apartments handle property taxes? A: Coop corporations pay property taxes on the entire building, then pass these costs to shareholders through maintenance fees, though individual units may qualify for certain exemptions.

Q: What is the difference between market value and assessed value? A: Market value is what your property would sell for, while assessed value is a percentage of market value used for tax calculations, varying by property class.

Q: How often are properties reassessed in New York County? A: Properties are subject to annual assessment review, though not all properties are physically inspected each year. Major changes or improvements trigger reassessment.

Verified Sources

Backed by 7 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
County
New York County Assessorwww1.nyc.gov
02
Tax Doc
Property Tax Ratesnyc.gov
03
Tax Doc
DiNapoli: Tax Cap Remains at 2% for 2025 | Office of the New ...osc.ny.gov
04
Tax Doc
Calculating Your Annual Property Taxnyc.gov
05
Tax Doc
TC150 | Tax Commission of the City of New Yorknyc.gov
06
State
NY State Assembly Bill 2025-A8316nysenate.gov
07
State
Assessments of taxable state land procedures - Tax.NY.govtax.ny.gov
All sources verified as of 2025 Tax Year

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