Money & taxes · The City

New York City property tax runs on four classes.

The useful number is usually the taxable assessed value on the Department of Finance record. The City applies the rate after any assessment cap or transition and after exemptions reduce the assessed value. Abatements can then reduce the tax. A sale price alone does not tell you the bill.

The useful starting point

Find the class and taxable value first

Usually, the cleanest NYC estimate starts with the tax class and taxable assessed value on the Department of Finance record. A sale price by itself is not enough, especially for a long-held Class 1 home or a co-op or condo.

Tax class

Most one- to three-family homes are Class 1; most co-ops, larger condos, and rentals are Class 2.

Class 3 is utility property. Class 4 covers commercial property and other property that does not fit the first three classes.

NYC property-tax overview ->

Taxable value

The class rate is applied to taxable assessed value, not directly to the sale price.

Class 1 starts with a 6% assessment ratio, but annual and five-year caps can hold assessed value below that number. Small Class 2 buildings have caps; larger Class 2 and Class 4 properties can use transitional assessed value. Exemptions lower taxable value, and abatements are taken after the tax is calculated.

NYC assessed-value rules ->

Current rate

Each class has its own rate, and the City publishes a new set for each tax year.

The estimator uses the latest rates shown by the Department of Finance. Check the tax year on the page before using a rate for a closing or appeal.

NYC property-tax rates ->

Co-op or condo

The City values most Class 2 co-ops and condos as if they were comparable rental buildings.

A condo owner can use the unit's DOF record. A co-op shareholder usually pays a share of the building tax through maintenance and should ask the board or managing agent for that allocation.

NYC Class 2 property guide ->

Ordinary example

A Class 1 record with $54,000 of taxable assessed value

At the tax-year 2026 Class 1 rate of 19.843%, the tax is about $10,715 before abatements. Do not turn a $900,000 sale price into that $54,000 base yourself; DOF caps and exemptions can make the parcel's taxable value lower.

What changes the answer

Caps, transition, and benefits: They can make the taxable value or final tax much lower than a market-value shortcut suggests.
A new tax year: Class rates can change. Match the rate to the year on the bill.
Non-primary use: A separate surcharge may apply to certain high-value homes beginning with the tax year that started July 1, 2026.

Do this next

Open the property record Find the tax class, market value, assessed value, exemptions, and current bills for the property.
Match the tax year Use the Department of Finance rate for the same year as the bill or estimate.
Use DOF's Class 1 estimator When you do not have the parcel's taxable value, use the City's own estimator instead of sale-price math.

More money and property paths

Home & Property Money notes Quick reference STAR Equalization rates Assessment review and grievance Transfer and mansion tax Co-op vs. condo Local income tax Rent stabilization

Estimator

New York property-tax estimate

Outside New York City, this tool shows a market-value planning subtotal from the rate you enter. The City uses four classes, but every class estimate should start with taxable assessed value from the DOF record.

Taxable assessed value$Use taxable assessed value from the DOF record or bill. Do not enter sale price or market value; caps, transitional values, and exemptions can change the tax base.

Taxable base used

$54,000

Estimated annual tax

$10,715.22

Monthly planning

$892.94

Class 1 rate: 19.843% of taxable assessed value. The latest rates published by DOF are for NYC tax year 2026; as of July 14, 2026, the FY2027 rate had not been posted. If the value entered is already after exemptions, do not subtract them again. Abatements are not included.

New in July 2026 and not included above: New York's non-primary-residence surcharge can apply to certain NYC Class 1 properties with phase-one market value of at least $5 million and to residential condo or co-op units at $1 million or more. Primary-residence status and the law's market-value measure require a separate determination. Check the current surcharge rule and NYC Department of Finance guidance before relying on this estimate.

This is a planning tool, not a bill. Outside NYC it can omit village and special-district charges. In the City it needs the correct taxable assessed value and does not subtract abatements. Confirm with your assessor (rest of state) or the NYC Department of Finance (the City).

New for 2026 · DOF determination

NYC's non-primary-residence surcharge

Tax Law Article 30-C began July 1, 2026. It adds an annual surcharge when the NYC Department of Finance determines that a covered property is not a primary residence. Under the law and the final DOF rules effective July 14, qualifying primary-residence use can be by a covered owner, the owner's immediate family member, or a natural-person tenant or subtenant who meets the lease and proof rules. For 2026/27, DOF says it will use income-tax data for its initial review and mail notices to properties it finds subject to the surcharge. The final rules explain the proof and appeal paths; an owner's description of the home as a second residence does not settle the result by itself.

During phase one, for fiscal years beginning July 1, 2026 and July 1, 2027, the threshold is a phase-one market value of $5 million or more for Class 1 property or $1 million or more for a residential co-op or condo unit. The rate applies to the phase-one market value, not just the amount above the threshold. Class 1 rates are 0.8% from $5 million through $15 million, 1.05% above $15 million through $25 million, and 1.3% above $25 million. Co-op and condo unit rates are 4% from $1 million through $3 million, 5.25% above $3 million through $5 million, and 6.5% above $5 million. A $2 million covered non-primary condo would therefore start at an $80,000 annual surcharge under the statute. The law is scheduled to sunset in 2031; confirm the value, primary-residence result, exclusions, appeal route, and adopted DOF rules.

Reviewed July 14, 2026. DOF's final rules took effect that day. Use the linked final rule and live rulemaking page for the current proof, notice, and appeal procedures.

Why co-op and condo taxes do not track the sale price

Class 2 co-ops and condos are generally valued from comparable rental income, not the apartment's sale price. A condo has its own tax lot, so the owner can use the unit's DOF record or bill. A co-op shareholder does not usually receive the building's property-tax bill; the board or managing agent pays it and passes each apartment's share through maintenance. Before using the calculator, ask for the apartment's allocated taxable assessed value, not the annual tax dollars included in maintenance. When you have assessed value from a notice, check whether exemptions have already been subtracted before treating it as taxable value.

Official sources

Reviewed July 14, 2026. The latest DOF rates were for tax year 2026; the FY2027 rate had not yet been posted. Assessment ratios, caps, transitions, exemptions, abatements, and co-op/condo allocations are property-specific; confirm with NYC Department of Finance or the co-op's board or managing agent.

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