November 21, 2022

How Are Property Taxes Determined in New York City?

property tax wooden blocks with a miniature house on wooden tableWhile property taxes in New York can be high, New York City has property tax rates significantly below the state average. However, since property taxes are based on the value of your property, your tax obligations can change over time. Strazzullo Law Firm can provide you with more information about property taxes and can help you challenge a tax assessment if the rates you’re paying are too high.

So how are property taxes determined in New York City?

Property Tax

Property tax is a tax paid on property tax that you own. It’s considered an ad valorem tax, meaning the property’s value is used to determine tax rates. New York property tax is a local tax that’s used for the funding of public schools as well as local government.

Tax rates are calculated based on a property’s assessed value. Every year, these rates are revised.

Several factors are considered when setting tax rates, including the value of the tax district’s real estate and the income needed by the tax authority. Typically, property taxes will increase each year.

Determining Market Value

The Department of Finance in New York City assesses properties and assigns them a market value. Your property’s market value is what the state believes your property is worth. To calculate a property’s market value, the department looks at similar properties in your area that sold over the last three years.

After your property is assessed, you will receive a Notice of Property Value. This notice will inform you of the market value of your property for the upcoming tax year.

The property tax fiscal year in New York City spans from July 1st to June 30th, so you’ll have time to take action if there’s an issue with your assessment. An experienced real estate lawyer in Brooklyn can help you challenge an inaccurate assessment.

Tax Certiorari

If your property is overvalued when it’s assessed, it will have a direct impact on your tax bill. Thankfully, if your bill is too high, there are ways for you to fight back. An attorney can help you to challenge a property tax assessment that is unfair or inaccurate.

It’s possible to dispute the assessed market value of your home, which can reduce your tax assessment. The window to apply for a dispute is limited, so it’s best to reach out to an attorney for help as soon as possible.

Property Tax Calculator

If you want to calculate your property tax obligation, a property tax calculator can easily determine what you owe. You can estimate your property taxes by multiplying your property’s taxable value by the tax rate for your property. Your property’s tax class determines this rate.


While all properties in New York are assessed, properties aren’t always taxable. Some properties are fully exempt from property tax, while others are eligible for partial exemptions. You may be eligible for an exemption, so it’s worthwhile to learn more about some of the exemptions available.

These exemptions include the following:

  • Homestead exemptions: These exemptions are available to certain homeowners who cannot cover the cost of property taxes.
  • Exemptions for seniors: Seniors with income below a certain level may be eligible for a tax exemption.
  • Exemptions for disability: New York also offers some exemptions for people with a documented disability. Only those that meet income restrictions are eligible.
  • Exemptions for veterans: Qualified veterans may be eligible for tax exemptions. These exemptions are typically available to veterans that are disabled.

Even if you meet the requirements for these exemptions, it can be difficult to get your tax rates reduced. That’s why it’s best to work with an attorney that can guide you through the application process. If you qualify for an exemption, we’ll do everything we can to assist you.

Property tax laws in New York City can be very complex. If you want to apply for a tax exemption or are concerned about your property’s assessment, the Strazzullo Law Firm can help. Contact our firm today to learn more.