How NYC Property Taxes Work and When They're Due
How NYC property taxes are calculated and billed
New York City property taxes are based on the assessed value of your property, not its market value. The city's Department of Finance assesses each property every year, and that assessment is multiplied by a tax rate that varies by property class (residential, commercial, industrial, or utility). The result is your annual tax bill.
Your property falls into one of four classes. Class 1 is one-to-three-family homes and small condos. Class 2 is larger apartment buildings. Class 3 is utility companies. Class 4 is commercial and industrial property. Each class has its own tax rate, and rates change yearly. The Department of Finance publishes the current rates on its website, but you do not need to calculate your own bill—the city sends you one.
Bills arrive twice a year: one for July through December, and one for January through June. Each bill covers six months of taxes. If you own your home outright, you receive the bill directly. If you have a mortgage, your lender may collect taxes as part of your escrow account and pay the city on your behalf.
Key Takeaways
- NYC property taxes are based on the city's assessed value of your property, not what you paid for it or what it could sell for today.
- Bills arrive twice yearly, covering six months each, and are due by the last business day of the month printed on your bill.
- You can pay online through the Department of Finance website, by mail, or in person at a payment office, and late payments trigger interest and penalties starting the day after the due date.
- If your assessed value seems wrong, you can file a challenge called a Tentative Assessment Review (TAR) or a Formal Assessment Review (FAR) within specific windows each year.
- Property owners over 65, disabled, or meeting income limits may reduce their tax bill through STAR, Senior Citizen Homeowners' Exemption, or Disabled Homeowners' Exemption programs.
When property taxes are due and what happens if you miss the deadline
Property tax bills in NYC are due by the last business day of the month printed on your bill. For the July–December bill, that is usually July 31. For the January–June bill, that is usually January 31. If the last day of the month falls on a weekend or holiday, the deadline moves to the next business day. The Department of Finance website shows the exact due date for your bill.
If you do not pay by the due date, interest accrues at 7 percent per year, calculated daily. A penalty of 0.75 percent is also added to your balance. Both interest and penalty are charged starting the day after your bill is due. After 30 days of nonpayment, the city may file a lien against your property, which means the city has a legal claim on the property until the debt is paid. If taxes remain unpaid for three years, the city can foreclose and sell the property at auction.
If you receive a bill you believe is wrong, paying it on time does not waive your right to challenge it later. However, paying stops interest and penalties from growing while you dispute the amount.
How to pay your NYC property tax bill
The Department of Finance offers several payment methods. Online payment through the NYC Department of Finance website (nyc.gov/finance) is the fastest and most common route. You will need your property's tax block and lot number, which appears on your bill. You can pay by bank account transfer (ACH), debit card, or credit card. Credit card payments charge a convenience fee of roughly 2 percent.
You can also mail a check or money order to the address printed on your bill. Include your bill number and property address on the check. Mail payments take 7 to 10 business days to reach the Department of Finance, so send them early if your due date is near.
In-person payment is available at Department of Finance payment offices in lower Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. Hours and locations are listed on the Department of Finance website. Bring your bill and a form of payment. Some offices accept cash, checks, and card payments; others accept card only. Call ahead to confirm what your local office accepts.
Understanding assessed value and how to challenge it
Your assessed value is not the price you paid for your home or its current market value. It is the city's estimate of what your property is worth for tax purposes. The Department of Finance reassesses properties annually, and assessed values can change year to year based on sales of comparable properties in your neighborhood, property condition, and market trends.
If you believe your assessed value is too high, you can file a challenge. There are two types: a Tentative Assessment Review (TAR) and a Formal Assessment Review (FAR). A TAR is informal and free. You submit a form and supporting documents (like a recent appraisal or comparable sales data) to the Department of Finance. A FAR is a formal hearing before an administrative law judge and costs a filing fee, but it is more thorough.
The deadline to file a TAR is March 15 each year. The deadline to file a FAR is May 15. Both deadlines are firm. If you miss them, you cannot challenge that year's assessment. You can file again the following year. The Department of Finance website has forms and instructions for both types of challenges.
Tax reduction programs for homeowners
New York State offers three main tax reduction programs for homeowners. The School Tax Relief (STAR) program reduces property taxes for owner-occupied homes. You must live in the home as your primary residence. Basic STAR is available to homeowners of any age with a household income below a certain threshold (the limit changes yearly). Enhanced STAR is for homeowners 65 and older with a lower income threshold.
The Senior Citizen Homeowners' Exemption reduces taxes for homeowners 65 and older who meet income and property value limits. The Disabled Homeowners' Exemption is for homeowners with a disability who meet similar limits. Both programs reduce your assessed value, which lowers your tax bill. You apply through the Department of Finance, and approval is based on income, age, and property ownership.
To learn whether you meet the income and property limits for any of these programs, visit the Department of Finance website or call 311 (the city's general information line). The application process varies by program, but all are free to apply for.
What to do if you cannot pay your full bill
If you cannot pay your full tax bill by the due date, contact the Department of Finance before the deadline. The city offers a payment plan called an installment agreement, which lets you pay your bill in smaller amounts over time. You must request this in writing or by phone before your bill becomes delinquent. The Department of Finance will work with you to set up a schedule.
Interest and penalties still accrue on unpaid balances, even on a payment plan. However, entering a payment plan stops the city from filing a lien or starting foreclosure proceedings as long as you stick to the agreed schedule. If you miss a payment on the plan, the city can resume collection action.
If you are facing hardship—job loss, medical emergency, or other crisis—some nonprofits and community organizations offer emergency assistance for property taxes. Call 311 or search the city's website for "property tax assistance" to find local resources. These programs are limited and have their own income requirements, but they exist.
How property taxes change when you buy or sell
When you buy a property, the city reassesses it. The new assessed value is usually based on the sale price, though not always at 100 percent of what you paid. The Department of Finance uses a formula that varies by property class and neighborhood. Your first bill as the new owner will reflect this reassessment.
If you sell your property, you are responsible for taxes up to the date of closing. Your buyer is responsible from the closing date forward. At closing, the title company calculates a proration: how much of the annual tax bill belongs to each party. If you have already paid taxes for months you will not own the property, you receive a credit. If you have not paid for months you did own it, you owe money at closing.
After you sell, the city will send your final bill to your address on file. Make sure to update your address with the Department of Finance so you receive it. If the bill goes to your old address and you do not pay, interest and penalties will accrue, and a lien could be filed against the property—which affects the new owner and complicates future sales.
Frequently Asked Questions
Can I pay my property taxes through my mortgage lender?
If your lender collects taxes as part of your escrow account, they pay the city on your behalf. You do not pay the city directly. However, you are still responsible if the lender makes a mistake or fails to pay. Check your mortgage statement to confirm whether taxes are escrowed. If they are not, you must pay the city yourself.
What is the difference between assessed value and market value?
Market value is what your home would sell for today. Assessed value is what the city estimates it is worth for tax purposes. They are often different. Assessed value is usually lower than market value, but not always. The city uses assessed value to calculate your tax bill, not market value.
Do I have to pay property taxes if I own my home outright?
Yes. Property taxes are owed by anyone who owns real property in New York City, whether the property is paid off or financed. The only exception is property owned by certain nonprofits, religious organizations, or government agencies, which may be tax-exempt.
How long do I have to pay before a lien is filed?
A lien can be filed after 30 days of nonpayment. However, the city typically sends notices and warnings before filing. If you receive a notice, contact the Department of Finance immediately to set up a payment plan or discuss your options.
Can I deduct my NYC property taxes on my federal income tax return?
You may be able to deduct state and local property taxes on your federal return, but there is a combined limit of $10,000 per year for all state, local, and sales taxes. Consult a tax professional or the IRS website to determine whether your situation qualifies.