How the calculation works
NYC charges interest on any property tax installment that is not paid (or postmarked) by its due date. The rate depends on your property's assessed value, and the interest compounds daily. This tool applies the annual rate divided by 365 for each day between the original due date and the day you pay: interest = unpaid tax × ((1 + rate ÷ 365)days − 1).
| Assessed value | FY2026 (Jul 2025–Jun 2026) | FY2027 (Jul 2026–Jun 2027) |
|---|---|---|
| $250,000 or less | 6% | 6% |
| Over $250,000 up to $450,000 | 9% | 9% |
| Over $450,000 | 16% | 16% |
The grace period trap
If your assessed value is $250,000 or less, DOF bills you quarterly (July 1, October 1, January 1, April 1) and lets you pay interest-free through the 15th of that month. Miss the 15th and interest is charged from the original due date, so paying on the 16th costs you 15 days of interest, not one. DOF says a payment due on a weekend or federal holiday is due the next business day. Properties assessed above $250,000 are billed twice a year, July 1 and January 1, and DOF lists no grace period for them.
Worked example
A Queens one-family house has an assessed value of $32,000, so it is billed quarterly at the 6% rate. The owner misses the $2,400 installment due July 1, 2026 and pays on October 12, 2026, which is 103 days late. Interest is $2,400 × ((1 + 0.06 ÷ 365)103 − 1), about $41. Paying by July 15 would have cost nothing. At 16% (a property assessed above $450,000), the same $2,400 left unpaid for 103 days would cost about $111.
When unpaid tax becomes a lien sale risk
Unpaid taxes and some charges can be sold as a lien to an outside buyer, who can later start foreclosure. Selling the lien does not mean your property has been sold, and the lienholder adds its own charges on top.
| Property type | Minimum debt | Years overdue |
|---|---|---|
| 1 family, owner- or non-owner-occupied | $5,000 | 3 |
| 2–3 family, owner- or non-owner-occupied | $5,000 | 3 |
| Residential condo or co-op building | $5,000 | 3 |
| Small store or office with 1–2 apartments above | $5,000 | 3 |
| HDFC rental building | $5,000 | 2 |
| Developable class 1 vacant land | $1,000 | 3 |
| All other | $1,000 | 1 |
Edge cases
- Rates are set for each fiscal year. This tool only covers due dates and payments between July 1, 2025 and June 30, 2027, the two years with published rates.
- For class 2 buildings with more than 10 units and all class 4 properties, the rate band uses the actual assessed value, before phase-ins and exemptions.
- Payment agreements and other charges, such as water and sewer or sidewalk repair, can carry different rates. They are not modeled here.
- DOF bills a co-op building as a whole, and shareholders pay their share through maintenance. If you own a co-op apartment, a late payment is between you and the co-op.
- DOF computes the official amount, so your bill may differ by a few dollars.
What to do next
Pay the installment as soon as you can, because every day adds interest. If you can't pay in full, ask DOF about a payment agreement. Paying in full or entering an agreement keeps the debt out of the lien sale. Read how homeowners avoid the tax lien sale and how to read your tax bill, or estimate your next bill with the NYC property tax estimator.