NYC property tax rate in 2026: a guide for apartment buyers

updated 2026-11-11

NYC's property tax rate is 12.439% of assessed value for co-ops and most condos and 19.843% for 1–3 family homes, applied to a value well below the price.#

Last updated: 2026-11-11. General information, not legal, tax or financial advice. Rates and rules change, so confirm the numbers for your deal with your real estate attorney and lender.#

The short answer#

New York City taxes residential property by class. Most apartments for sale are in Class 2; houses and small condos are in Class 1. The rate is applied to the assessed value, a fraction of the Department of Finance's own estimate of market value, never to the price you pay.#

Tax class	What's in it	Assessed value	Rate, tax year 2026
Class 1#	Most 1–3 unit homes, and most condos of three stories or fewer	6% of DOF market value	19.843%
Class 2#	All other residential property: co-ops, condos and rentals	45% of DOF market value	12.439%

These are the rates the Department of Finance lists for tax year 2026, the city fiscal year from July 1, 2025 to June 30, 2026. The city's fiscal year 2027 began on July 1, 2026, but on 2026-11-11 the Department of Finance's rate page still listed the 2026 rates. The rate on your actual bill is the one to use; the property bill lookup is described below.#

How NYC property tax is calculated#

The formula is the same for every class:#

annual tax = (assessed value − exemptions) × tax rate − abatements#

The steps behind it:#

Market value. The Department of Finance (DOF) sets a market value every year. For Class 1 homes it uses sales of similar properties in the neighborhood over the prior three years. For co-ops and condos, state law requires DOF to value the building as if it were a rental building, from estimated rental income and expenses. That method usually produces a market value far below what the apartments sell for.#
Assessed value. 6% of market value in Class 1, 45% in Class 2.#
Caps and phase-ins. Class 1 assessed value can rise no more than 6% a year and 20% over five years. Class 2 buildings with 10 or fewer units are capped at 8% a year and 30% over five years. Larger Class 2 buildings have no cap, but increases in market value are phased in over five years.#
Exemptions and abatements. Exemptions (421-a, J-51 and others) reduce the taxable assessed value. Abatements, such as the co-op and condo abatement, reduce the tax itself.#

The caps explain why two similar apartments can carry different taxes: a building's assessed value reflects years of capped or phased-in growth, not this year's market.#

Co-op property tax vs a condo's tax bill#

A co-op building gets one tax bill for the whole property. The co-op pays it and passes it to shareholders through maintenance, in proportion to their shares. A co-op owner never sees a separate property tax bill, which is why co-op maintenance looks high next to condo common charges.#

A condo unit is its own tax lot with its own property tax bill, sent to the owner. A condo owner pays common charges to the building and property tax to the city, separately.#

So when you compare listings, add the condo's tax to its common charges before you set it next to a co-op's maintenance. The co-op vs condo guide works through the rest of that comparison.#

The co-op and condo abatement#

Co-op and condo owners can get a partial abatement of their property tax if the apartment is their primary residence. The building applies once a year for all eligible owners (deadline February 15); individual owners don't apply.#

Building's average assessed value per unit	Abatement
$50,000 or less#	28.1%
$50,001 – $55,000#	25.2%
$55,001 – $60,000#	22.5%
$60,001 and above#	17.5%

The rules that matter to a buyer:#

The building must be in Class 2.#
You may own no more than three residential units in the building, and the unit can't be held by a business such as an LLC (limited exceptions apply).#
You must have bought on or before January 5 to qualify for the tax year starting the next July 1. Buy in February and you pay the unabated tax for over a year.#
A building receiving 421-a or J-51 can't get the abatement until those benefits expire.#
The program is authorized by state law for a set term. The 2023 extension runs through the city fiscal year that began in 2026 (July 2026 to June 2027), so later years depend on another renewal.#

For a co-op, the abatement appears as a credit on your maintenance. For a condo, it appears on your unit's tax bill.#

421-a and J-51: ask when they expire#

Many newer condos and converted buildings pay low taxes because of a temporary exemption. When it ends, taxes rise in steps until they reach the full amount.#

421-a gives new buildings an exemption from the increase in tax caused by construction. Benefits run 10 to 35 years depending on the program, with full years followed by phase-out years. The program closed to new projects that started after June 15, 2022.#
J-51 gives renovated or converted buildings an exemption from the increase in tax caused by the work, plus an abatement of existing tax. The original program ended for work completed after June 29, 2022. Co-ops and condos generally receive limited benefits.#

Questions to put to the seller, the managing agent or your attorney before you sign:#

Does the building or unit receive 421-a, J-51 or another exemption?#
In which tax year does each benefit begin phasing out, and when does it end?#
What would the annual tax be today without it?#

Then compare listings at the full, unabated tax, not the current bill.#

How to look up a building's tax bill#

The Department of Finance publishes every property's bills and values.#

Find the property in DOF's Property Tax Public Access portal by address or by Borough-Block-Lot (BBL) number. Condo units each have their own lot number; a co-op is one lot for the whole building.#
Open the latest property tax bill to see the tax class, the billable assessed value, the tax rate, and any exemptions or abatements, with their amounts.#
Open the Notice of Property Value to see DOF's market value and assessed value for the coming year.#

For a co-op, the bill is the building's bill. Divide by the building's total shares and multiply by the shares of the unit you're considering, or ask the managing agent how much of the maintenance goes to taxes.#

Worked estimates#

Condo unit, Class 2, DOF market value $250,000. This is DOF's value, not the sale price; use the figure on the unit's Notice of Property Value.#

Step	Amount
Assessed value: 45% × $250,000#	$112,500
Tax before abatement: $112,500 × 12.439%#	$13,993.88
Abatement, building average above $60,000: 17.5% × $13,993.88#	−$2,448.93
Annual tax, primary residence#	$11,544.95
Monthly#	$962.08

If you closed after January 5, the next tax year's bill would be the full $13,993.88.#

Co-op, Class 2. A building with a taxable assessed value of $3,000,000 pays $3,000,000 × 12.439% = $373,170 a year. An apartment with 2% of the shares carries $7,463.40 of that, $621.95 a month inside maintenance, before any abatement credit.#

Condo in a three-story building, Class 1, DOF market value $1,000,000. Uncapped assessed value is 6% × $1,000,000 = $60,000, and the tax is $60,000 × 19.843% = $11,905.80. If the market value then jumps, next year's assessed value can rise at most 6%, to $63,600, so the tax rises at most to $12,620.15 at the same rate.#

How to calculate it yourself: a property tax calculator for NYC#

Look up DOF's market value on the Notice of Property Value, or take the assessed value straight from the bill.#
Multiply market value by 45% (Class 2) or 6% (Class 1) to get assessed value.#
Subtract any exemptions shown on the bill.#
Multiply by the class rate: 12.439% for Class 2, 19.843% for Class 1 (tax year 2026).#
Subtract any abatement, such as the co-op and condo abatement.#

Pre-computed tax at tax year 2026 rates, before caps, exemptions and abatements, by DOF market value (not sale price):#

DOF market value	Class 2 assessed value	Class 2 tax	Class 1 assessed value	Class 1 tax
$100,000#	$45,000	$5,597.55	$6,000	$1,190.58
$150,000#	$67,500	$8,396.33	$9,000	$1,785.87
$200,000#	$90,000	$11,195.10	$12,000	$2,381.16
$250,000#	$112,500	$13,993.88	$15,000	$2,976.45
$300,000#	$135,000	$16,792.65	$18,000	$3,571.74
$400,000#	$180,000	$22,390.20	$24,000	$4,762.32
$500,000#	$225,000	$27,987.75	$30,000	$5,952.90
$750,000#	$337,500	$41,981.63	$45,000	$8,929.35
$1,000,000#	$450,000	$55,975.50	$60,000	$11,905.80
$1,500,000#	$675,000	$83,963.25	$90,000	$17,858.70

Property tax is a monthly cost for as long as you own the apartment, unlike the mansion tax and transfer taxes, which are paid once at closing. DwellScore's Financial score compares listings on their true monthly cost, taxes included. For the whole process from budget to keys, see buying an apartment in NYC.#