NYC Property Tax Assessment Explained

Reducing Property Taxes NYC Property Tax Assessment Explained

The Ins and Outs of the NYC Property Tax Assessment

Understanding how property tax works is important for any homeowner. If you live in the Big Apple, you should learn about the NYC property tax assessment

DoNotPay can provide you with the necessary information and tell you how to lower your property taxes!

Important Facts Regarding the NYC Property Tax Assessment

In New York City, the Department of Finance is in charge of evaluating your property each year. This is one of the steps needed to calculate your tax bill. In addition to the property tax assessment (assessed value), other required information includes:


  • Market value—The Department of Finance’s estimate of how much your property is worth based on the New York State Law requirements and your property’s tax class
  • Level of assessment (assessment ratio)—A percentage of your market value that depends on your tax class
  • Tax rate—The City Council and Mayor set an annual tax rate for each tax class

Tax Classes in New York City

New York City property is divided into four classes. You can see more details in the table below:

Tax Class Details Assessment Ratios:
Class 1 Residential property that has up to three units:

  • Family homes
  • Small stores
  • Offices with one or two apartments attached
  • Condominiums that don’t have more than three stories

6%

Class 2

Sub-Class 2a (four- to six-unit rental buildings)

Sub-Class 2b (seven- to ten-unit rental buildings)

Sub-Class 2c (two- to ten-unit cooperatives or condominiums)

Residential property:

  • Rentals
  • Cooperatives
  • Condominiums

45%

Class 3 Utility property

45%

Class 4 Commercial and industrial properties:

  • Office
  • Retail
  • Factory buildings
  • All other properties not included in the first three classes

45%

It is possible for your market value to go down while the assessed value increases. This happens when your assessed value is lower than the assessment ratio.

How Is Property Tax Assessment Value Calculated in NYC?

The Department of Finance calculates your property’s assessed value by multiplying the market value with the assessment ratio. The property tax assessor uses guides called Statements of Assessment Procedures to evaluate your property.

To get the final amount on your property tax bill, the government multiplies the assessed value with the tax rate.

You may apply for property tax exemptions that reduce the amount of the property tax you owe by lowering your property’s assessed value. You can find out if you qualify for property tax exemptions easily by using DoNotPay!

Property Tax Exemptions Available in NYC

New York offers numerous property tax exemptions to help its citizens deal with property taxes. Here are the available options:

  • Veterans exemption—Members of the U.S. Army who were honorably discharged from service with proper evidence qualify for this exemption
  • Senior citizens exemption—Seniors of New York who are 65 or older are eligible
  • Exemption for people with disabilities—Individuals with proof of disability can apply for this exemption
  • The School Tax Relief Program (STAR)—Individuals who are 65 with a total income that is less than $90,550 are eligible. They can get a $30,000 exemption from the full value of their property from school taxes

Can You Apply for an NYC Property Tax Exemption? DoNotPay Can Tell You!

DoNotPay is the easiest way of finding out if you are eligible for property tax exemptions in New York City. Find out if you have the right to apply in a few clicks. You only need to follow three simple steps:

  1. Sign up for DoNotPay in any web browser
  2. Find and choose the Property Tax product
  3. Provide some information about your property and yourself

If you are eligible for any of the exemptions available in the Big Apple, DoNotPay will tell you how to handle the application process the easiest way in a personalized PDF guide!

Appeal Your Property Tax Assessment With DoNotPay’s Assistance

Another great way of lowering your property taxes is appealing past property tax assessments. You can find out about the best tips and tricks to do so by opening DoNotPay’s Property Tax product. Our instructions will prepare you for a property tax appeal hearing by telling you how to best negotiate with the property tax assessor. We also know what evidence you should gather to strengthen your case!

Can You Do Anything Else To Lower Your Property Taxes?

In addition to property tax exemptions and appeals, you can also try some of the other methods to lower your property taxes. The common techniques involve:

  1. Checking your tax bill for mistakes
  2. Following the property tax assessor around the house to ensure they do the job properly
  3. Avoiding home renovations that may increase the assessed value
  4. Moving to a state with lower property tax

States With Low Property Taxes

New York is among the states with the highest property taxes. If you are willing to make a big life decision and move to another state, you should keep in mind the property tax bills there. Some of the states with the lowest property taxes are:

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