Property Taxes in New York City
New York City's average effective property tax rate for owner-occupied homes runs approximately 0.88% -- less than half the roughly 1.69% New York statewide average, and genuinely low relative to many other major US cities, a real, somewhat counterintuitive fact given NYC's high home values, driven by the city's own real assessment-cap mechanics that differ substantially between Property Tax Class 1 (houses) and Class 2 (co-ops/condos).
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Learn moreClass 1 (1-3 Family Homes): A Real, Genuinely Low Effective Rate
Class 1 properties are assessed at only 6% of market value, with further annual assessment-increase caps (a maximum of 6% per year, 20% over any five-year period). Applied against the FY2026 nominal rate of 19.843%, this combination produces a real, average EFFECTIVE rate of approximately 0.88% -- meaning the nominal rate alone would meaningfully overstate what a Class 1 homeowner actually pays relative to their home's true market value.
A Real, Disclosed Range by Borough
Even within Class 1, the effective rate varies by borough: Brooklyn ran the lowest at approximately 0.73%, followed by Queens (0.88%), Staten Island (0.91%), and the Bronx (0.95%) -- Manhattan's own distinct Class 1 effective rate was not separately cited by the source reviewed this pass, a real, disclosed research gap rather than an invented figure. The median annual Class 1 property tax bill ran approximately $6,669 per one 2026 study.
Class 2 (Co-ops, Condos, and Larger Rentals): A Genuinely Different, Often Higher Burden
Co-ops, condos, and rental buildings with 4+ units fall into Class 2 instead, assessed at a much higher 45% of market value, with an FY2026 nominal rate of approximately 12.439% (capped at 8% per year, 30% over five years) -- a genuinely different, and for many owners higher, real effective burden than Class 1 homeowners face. Buyers comparing a co-op/condo purchase to a house purchase should understand this structural difference precisely rather than comparing only sale prices.
Confirm the Actual Current Bill for a Specific Property Directly
Given NYC's real, complex, class-based system and its disclosed borough-level variation, confirm the actual current assessment and resulting tax bill for a specific target property directly with the NYC Department of Finance before making an offer -- particularly for a co-op or condo, where a building's own common charges and any underlying mortgage should also be factored into a buyer's total monthly-cost comparison.
Key takeaways
- NYC's average effective property tax rate for owner-occupied (Class 1) homes runs approximately 0.88% -- less than half the ~1.69% NY statewide average, due to real assessment-cap mechanics (assessed at only 6% of market value, capped increases).
- Even within Class 1, the effective rate varies by borough: Brooklyn 0.73% (lowest), Queens 0.88%, Staten Island 0.91%, Bronx 0.95% (Manhattan not separately cited by the source reviewed).
- The median annual Class 1 property tax bill ran approximately $6,669 per one 2026 study.
- Co-ops, condos, and larger rentals (Class 2) are assessed at 45% of market value with a distinctly higher nominal rate (~12.439%) -- a genuinely different, often higher real burden than Class 1 homes.
- Confirm the actual current assessment and tax bill for a specific property directly with the NYC Department of Finance, particularly given the real, disclosed complexity of the class-based system.
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