What is the property tax rate in New York City in 2024? This is something all NYC residents should be aware of and understand. Even potential buyers can benefit from knowing the tax rates and understanding how they work.
Property Tax Rates in New York City 2024
The tax year for properties in NYC is different from the typical tax season. It starts at July and ends in June of the following year. This is why property taxes in NYC for any year, including 2024, would fall under two categories: the first half of the year, which has already ended, and the second half, which is still underway. The current one is more relevant as this is the tax property owners will need to pay in 2025. The tax rates are:
Class-1 Properties: 20.085% (These are 1, 2, and 3-family homes and small condo buildings. Basically most free-standing homes). Class-2 Properties: 12.500% (These pertain to most condo and co-op buildings that are four stories or higher.)
How Property Taxes Apply
Property taxes in NYC are calculated based on the assessed value of the property, not the market value. The assessed value can be quite low, especially in the case of 1, 2, or 3-family homes. That’s because there are rules governing how much the assessed value can change over a period of time (no more than 20% in five years). So, a $2 million brownstone can realistically have an assessed value of just $300,000.
The tax bill is calculated differently for condo and co-op buildings. Their assessed value is calculated based on their rental potential in comparison to similar buildings.
A New York City broker can help you make an informed decision about a building, considering the property tax implications. They might encourage you to buy in an apartment building that has a long-term tax abatement that may keep your tax bill low for several years.
Also Read: Looking for The Best Mortgage Rate? What You Should Know
