NYC Property Tax Calculator
Estimate your annual NYC property tax from market value and tax class.
Estimate before exemptions and abatements (STAR, SCHE, 421-a, J-51) and before assessment caps / transitional assessed value, which can lower the actual bill — especially for Class 2 and 4. Tax rates are set annually by NYC (FY2026 shown). For your property's real assessed value and bill, look it up below.
The NYC Property Tax Formula
NYC property tax is calculated in three steps:
- Market Value - DOF determines the market value of your property using comparable sales, income data, and cost approaches.
- Assessed Value - The market value is multiplied by the assessment ratio for your tax class. Class 1: 6%, Class 2: 45%, Class 4: 45%.
- Tax Bill - The assessed value is multiplied by the tax rate for your class, then reduced by any exemptions or abatements.
Example Calculation
For a Class 1 property (1-3 family home) with a market value of $800,000:
- Assessment Ratio: 6%
- Assessed Value: $800,000 x 6% = $48,000
- Tax Rate (Class 1, FY2025): 20.085%
- Gross Tax: $48,000 x 20.085% = ~$9,641
- Less STAR exemption: -$1,400 (approximate)
- Net Tax: ~$8,241
Assessment Caps
Class 1 properties cannot have their assessed value increase by more than 6% per year or 20% over 5 years. Class 2 is capped at 8% per year or 30% over 5 years. These caps protect owners from sudden increases but may mean assessed value lags behind market value for rapidly appreciating properties.
Common Exemptions
- STAR - Basic STAR reduces the school tax portion for owner-occupied homes. Enhanced STAR provides a larger reduction for seniors 65+.
- Senior Citizen Homeowner (SCHE) - Exemption for seniors 65+ with income under $58,399.
- Disabled Homeowner (DHE) - Similar to SCHE but for disabled homeowners.
- Veterans - Various exemptions for eligible veterans based on service period and disability.
- 421-a - Tax benefit for new construction providing partial exemption for up to 35 years.
- J-51 - Tax abatement for building renovations in residential buildings.
Challenging Your Assessment
If you believe your property is over-assessed, you can file a challenge with the NYC Tax Commission. The filing deadline is typically March 1 for Class 1 and March 1 for other classes. Evidence of lower market value (comparable sales, income data) strengthens your case.
Frequently Asked Questions
How is NYC property tax calculated?
NYC property tax = Market Value x Assessment Ratio x Tax Rate - Exemptions. The assessment ratio is 6% for Class 1 (small residential) and 45% for Class 2 and 4. Tax rates vary by class and are set annually.
How can I lower my NYC property tax?
Apply for all eligible exemptions (STAR, SCHE, veterans). Challenge your assessment if the market value is too high. Check that your tax class is correct. Review your property for over-assessment of lot size or building area.