An NYC property tax bill is not a percentage of what your home is worth. It is a percentage of its taxable assessed value, which for a house is at most 6% of market value and, because of the assessment caps, usually less. That is why two similar homes on the same block can have very different bills.
At a glance
- Class 1 rate (tax year 2026)
- 19.843%
- 1–3 family homes
- Class 2 rate
- 12.439%
- Co-ops, condos, rentals 4+ units
- Class 4 rate
- 10.848%
- Commercial
- Assessment ratio
- 6% / 45%
- Class 1 / Classes 2 and 4
- Class 1 cap
- 6% a year, 20% in 5 years
- Small Class 2 cap
- 8% a year, 30% in 5 years
- Fewer than 11 units
How the calculation works
- Market value. DOF estimates it each year and prints it on your Notice of Property Value. Class 1 homes are valued from nearby sales; Class 2 and 4 buildings mostly from income.
- Assessed value. Multiply market value by 6% (Class 1) or 45% (Classes 2 and 4). For Class 1 and small Class 2 buildings, the result cannot rise faster than the caps allow, so your billable value is the lower of the target and the capped amount. For larger Class 2 buildings and Class 4, changes are phased in over five years and DOF bills the lower of the actual and "transitional" value.
- Taxable value. Subtract exemptions such as STAR, the senior (SCHE), disabled (DHE) and veterans exemptions.
- Tax. Multiply by the class tax rate, then subtract abatements, which come off the tax itself.
Worked example from DOF
DOF's own Class 1 guide uses a single-family home with an exemption and an abatement:
| Step | Amount |
|---|---|
| Market value | $714,000 |
| × 6% assessment ratio = assessed value | $42,840 |
| − exemption | −$2,000 |
| Taxable value | $40,840 |
| × 19.843% tax rate | $8,104 |
| − abatement | −$396 |
| Total property tax | $7,708 |
The calculator's default is more typical of a capped home: a $1,000,000 house whose target is $60,000, but whose assessed value was $50,000 last year. The 6% cap holds it to $53,000, so the tax is about $10,517, or 1.05% of market value. The line chart then shows the bill climbing as the capped value catches up.
Co-ops and condos
Co-op and condo buildings with more than three units are Class 2, and state law requires DOF to value co-ops and condos as if they were rental buildings. Condo owners get their own bill for their unit. Co-op owners do not: the bill goes to the co-op board, which passes the tax on through maintenance. Eligible owner-occupied units may get the co-op/condo abatement, which you can enter as a percentage. See the co-op/condo abatement estimator.
When you pay
If your assessed value is $250,000 or less, DOF bills you quarterly (due July 1, October 1, January 1 and April 1, interest-free until the 15th). Above $250,000, bills are due twice a year on July 1 and January 1. If your mortgage has an escrow account, your lender pays from it.
Edge cases
- Additions and renovations are added outside the caps, so a big renovation can jump your assessed value in one year.
- Losing an exemption, for example after a sale, raises the bill even if values are flat.
- Tax-exempt and 421-a or J-51 properties follow their own schedules; see the 421-a and J-51 expiry calculator.
What to do next
If your market value looks wrong, read how to appeal your assessment. Check your exemptions with the STAR checker, and learn more in NYC property tax explained.