NYC Property Tax Classes and Rates: How Your Bill Is Calculated
New York City’s four property tax classes, the 2025/26 rate for each, how assessment caps limit increases, and the deadlines to challenge your assessment.
By Seayora Editorial Team · Published · Facts checked · 4 min read
Short answer: New York City taxes real property in four classes set by Real Property Tax Law § 1802: one- to three-family homes (class 1), other residential property (class 2), utility property (class 3) and everything else, such as offices and stores (class 4). Each class has its own rate, applied to taxable assessed value rather than market value; for the 2025/26 tax year the rates were 19.843%, 12.439%, 11.108% and 10.848%. Assessment increases are capped for class 1 and for class 2 buildings with fewer than 11 units.
Key takeaways
- Class 1 is one-, two- and three-family homes; class 2 is other residential property, such as apartment buildings, co-ops and condos; class 4 is commercial property.
- The rate applies to taxable assessed value, after exemptions, not to the market value on your notice.
- Class 1 assessments cannot rise more than 6% a year or 20% over five years; class 2 buildings with fewer than 11 units are capped at 8% and 30%.
- Tax Commission appeals are due March 15 for class 1 and March 1 for classes 2 to 4, and must be received by the deadline.
What are the four NYC property tax classes?
| Class | What it covers | 2025/26 rate |
|---|---|---|
| Class 1 | One-, two- and three-family homes, with certain small condominiums and residential vacant land | 19.843% |
| Class 2 | All other residential property, including rental apartment buildings, co-ops and condominiums | 12.439% |
| Class 3 | Utility property | 11.108% |
| Class 4 | All other property, such as offices, stores, factories and garages | 10.848% |
The classes come from Real Property Tax Law § 1802, and the rates from the Department of Finance’s property tax rates page. The 2024/25 rates were 20.085%, 12.500%, 11.181% and 10.762%. Rates are set each year with the city budget, so check the page for the current year.
How is the tax calculated?
The Department of Finance estimates each property’s market value, converts it to an assessed value under the rules for its class, subtracts any exemptions to get the taxable assessed value, and multiplies that by the class rate. Abatements then come off the bill. A class 1 house with a taxable assessed value of $60,000 would owe $11,905.80 a year at the 2025/26 rate of 19.843%, before any abatement. The market value on your notice is not the number the rate is applied to.
How much can your assessment go up in a year?
For class 1, the assessment of a parcel cannot increase by more than 6% in any one year or 20% in any five-year period. For class 2 properties with fewer than eleven residential units, the limits are 8% a year and 30% over five years (RPTL § 1805). Increases from physical changes, such as new construction or additions, are not counted toward those limits, so a renovation can raise the assessment by more. Larger class 2 buildings and class 4 property (but not class 3) are not capped this way; instead a change in assessed value is phased in over five years, at 20%, 40%, 60%, 80% and then 100% of the change.
When do you get your Notice of Property Value?
The Department of Finance publishes the tentative assessment roll in mid-January and sends each owner a Notice of Property Value. The roll for fiscal year 2027, which began July 1, 2026, was released on January 15, 2026, with a total citywide market value of $1.659 trillion, 5.4% more than the year before (NYC Department of Finance). Owners can challenge the tentative values before the roll is finalized in May.
How do you challenge your assessment?
- Ask the Department of Finance to correct a factual error with a Request for Review by March 15 for class 1 and April 1 for other classes (NYC Department of Finance).
- Appeal the value to the NYC Tax Commission by March 15 for class 1 and March 1 for classes 2, 3 and 4. When the date falls on a weekend it moves to the next business day, as it did in 2026, and the application must be received, not just postmarked (NYC311).
- Owners of income-producing property must file their RPIE on time to keep the right to a Tax Commission hearing; see the NYC RPIE guide.
- Owner-occupied one- to three-family homes can then go to small claims assessment review; see property tax grievances.
What else lowers a property tax bill?
Exemptions and abatements: the STAR credit for owner-occupied homes, exemptions for seniors, veterans and people with disabilities, and the housing incentives in 485-x, 421-a and J-51 for qualifying buildings. Each has its own application and deadline.
Frequently asked questions
What tax class is a three-family house in NYC?
Class 1, which covers one-, two- and three-family residential property under Real Property Tax Law § 1802. Its rate for the 2025/26 tax year was 19.843% of taxable assessed value.
How much can my NYC property assessment increase each year?
For class 1 homes, no more than 6% a year and 20% over five years, excluding physical changes. For class 2 buildings with fewer than 11 units, 8% a year and 30% over five years.
What is the deadline to appeal an NYC property assessment?
March 15 for class 1 and March 1 for classes 2, 3 and 4, moved to the next business day when the date falls on a weekend. The Tax Commission must receive the application by then.
Sources
- N.Y. Real Property Tax Law § 1802, Classification of real property in special assessing units, New York State Senate
- N.Y. Real Property Tax Law § 1805, Limitations on assessment increases, New York State Senate
- Property tax rates, NYC Department of Finance
- Fiscal Year 2027 tentative assessment roll (press release, January 15, 2026), NYC Department of Finance
- Challenge your property’s assessed value, NYC Department of Finance
- NYC Tax Commission, NYC Tax Commission
- Property assessment appeal (Tax Commission deadlines), NYC311
How Seayora helps
Property tax center: Track each property’s tax bills, assessments and deadlines alongside its books.
This article is general information, not tax advice. Tax rules change and your situation is your own, so confirm the treatment with a CPA or enrolled agent before you file.
How we write and check these guides: editorial standards.
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