Money & taxes · The City

New York City property tax runs on four classes.

Short answer: the NYC Department of Finance sorts property into one of four classes, assesses it at that class's ratio, then applies exemptions, abatements, caps, and that class's tax rate. It shares almost nothing with the equalization-rate system used in the rest of the state — so don't compare a Brooklyn bill to a Buffalo one.

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Class 1

Most residential property up to 3 units, including many small condos

Assessed at 6% of market value, with caps (6%/yr, 20%/5yr) that hold the assessed value down over time.

Class 2

Other primarily residential property: co-ops, larger condos, and rentals

Assessed at 45% of value — but co-ops and condos use a comparable-rental method, so taxable value can be far below the sale price.

Class 3

Utility company equipment and special franchises

Set by the state.

Class 4

Commercial and all other property

Offices, stores, factories — everything not in Classes 1–3.

Estimator

New York property-tax estimate

New York has two systems. Pick the one that fits — the rest of the state works from your market value and a full-value rate; New York City uses taxable value and its four tax classes.

Market value$A 1–3 family home is assessed at 6% of market value, then exemptions and caps can change the taxable value. Long-held homes often bill lower than this shortcut.

Tax base used

$54,000

Estimated annual tax

$10,715.22

Monthly planning

$892.94

Class 1 rate: 19.843% of taxable value (NYC tax year 2026). Reviewed July 2026. Exemptions and abatements are not subtracted above.

This is a planning estimate, not a bill. It doesn't include every exemption, special district, or parcel-specific adjustment. Confirm with your assessor (rest of state) or the NYC Department of Finance (the City).

The catch most people miss

Because co-ops and condos that are in Class 2 are valued on what a comparable rental building would earn — not on the sale price — two apartments that sell for the same amount can have very different tax bills, and the assessed value on your Notice of Property Value is usually a small fraction of market. For the closest estimate, use the taxable value from your bill. If assessed value from the notice is the number in hand, treat the result as a rough pre-exemption number, not the price you paid.

Official sources

Reviewed July 2026. Rates, assessment ratios, caps, exemptions, abatements, and co-op/condo valuation details are property-specific; confirm with NYC Department of Finance.

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