Note: This calculator provides an estimate. Actual tax may vary. Consult official NYC DOF resources for definitive figures.
Class 1 (1-3 Family Home, Condo, Co-op – Primary Residence)
Class 1 (Other Class 1)
Class 2 (Residential – Primary Residence, Condo, Co-op)
Class 2 (Residential – Other)
Class 2 (Non-Residential)
Class 3 (Utility Property)
Class 3 (Other)
Class 3 (Land)
Class 4 (Commercial, Industrial, Other)
Typically 100% for residential in NYC, but can vary.
Understanding NYC Property Tax
Property tax is a significant revenue source for New York City, funding essential services like schools, parks, and public safety. Understanding how your property tax is calculated is crucial for homeowners and property owners in NYC. The calculation involves several key components: Market Value, Assessed Value, Class of Property, and Tax Rates.
The Calculation Process
The New York City Department of Finance (DOF) determines property taxes based on the following steps:
Market Value: This is the estimated selling price of your property on the open market. The DOF uses various methods to estimate this value.
Assessed Value: This is the portion of your property's market value that is subject to taxation. In NYC, for most residential properties (Class 1 and Class 2), the Assessed Value is typically 100% of the Market Value for assessment purposes, but there are homestead exemptions that can reduce this for primary residences. For Class 4 properties, the assessment ratio can differ.
Actual Assessed Value (AAV): This is the final value upon which taxes are levied. It's derived from the Assessed Value and any applicable exemptions or abatements, and is subject to limits on how much it can increase year-over-year. For simplicity in this calculator, we will use the direct percentage of Market Value.
Property Class: NYC categorizes properties into four main classes, each with different assessment ratios and tax rates.
Class 1: Properties with four units or less, including one-, two-, and three-family houses, condominiums, and co-ops where the owner lives in the unit.
Class 2: Other residential properties, including apartment buildings, co-ops, and condos not occupied by the owner as a primary residence. Also includes non-residential properties that are not Class 1, 3, or 4.
Class 3: Properties owned by utility corporations.
Class 4: Commercial properties like office buildings, hotels, stores, and other non-residential properties.
Tax Rate: Each property class has a specific tax rate applied to its Actual Assessed Value. These rates are set annually by the NYC Council.
NYC Property Tax Rates (Illustrative – subject to change)
The following are illustrative tax rates. Actual rates can vary and are updated annually by the NYC Department of Finance.
Class 1: Approximately 1.06% for primary residences, and a slightly higher rate for other Class 1 properties.
Class 2: Varies significantly by usage (residential, condo, co-op, mixed-use, non-residential). For residential, it can range from around 1.2% to 1.6% of AAV.
Class 4: Typically around 10.75% of the property's assessed value, often after a partial abatement for some commercial properties.
Important Note: This calculator uses simplified tax rates for illustrative purposes. The actual calculation by the NYC DOF is more complex, involving abatements, exemptions (like the STAR credit for primary residences), and caps on assessment increases. Always refer to your official NYC tax bill or the NYC DOF website for precise figures.
How This Calculator Works
This calculator takes your estimated Market Value and applies the Assessed Value Percentage you provide to determine the Assessed Value. It then applies a simplified, class-specific tax rate to estimate your annual property tax.
Example:
If a property has a Market Value of $1,000,000, and is Class 1 (primary residence, 100% assessment), the Assessed Value is $1,000,000. Applying an illustrative tax rate of 1.06% (0.0106) for Class 1 primary residences results in an estimated tax of $1,000,000 * 0.0106 = $10,600.
Use Cases
Prospective Buyers: Estimate the annual carrying cost of a property.
Current Homeowners: Understand how changes in market value or property classification might affect taxes.
Real Estate Investors: Factor property taxes into investment profitability calculations.
For the most accurate and up-to-date information, always consult the official NYC Department of Finance (DOF) website and your official property tax bill.
function calculatePropertyTax() {
var marketValue = parseFloat(document.getElementById("marketValue").value);
var propertyClass = document.getElementById("propertyClass").value;
var assessmentPercentage = parseFloat(document.getElementById("assessmentPercentage").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(marketValue) || isNaN(assessmentPercentage)) {
resultDiv.innerHTML = "Please enter valid numbers for Market Value and Assessment Percentage.";
return;
}
if (marketValue <= 0 || assessmentPercentage 100) {
resultDiv.innerHTML = "Market Value and Assessment Percentage must be positive. Assessment Percentage cannot exceed 100%.";
return;
}
var assessedValue = marketValue * (assessmentPercentage / 100);
var taxRate = 0;
var className = "";
switch (propertyClass) {
case "A1": // Class 1 (Primary Residence)
taxRate = 0.0106; // Illustrative rate for primary residence Class 1
className = "Class 1 (Primary Residence)";
break;
case "A2": // Class 1 (Other)
taxRate = 0.0112; // Illustrative rate for other Class 1
className = "Class 1 (Other)";
break;
case "B1": // Class 2 (Residential – Primary Residence, Condo, Co-op)
taxRate = 0.0120; // Illustrative rate for primary residence Class 2
className = "Class 2 (Residential – Primary Residence)";
break;
case "B2": // Class 2 (Residential – Other)
taxRate = 0.0150; // Illustrative rate for other residential Class 2
className = "Class 2 (Residential – Other)";
break;
case "B3": // Class 2 (Non-Residential)
taxRate = 0.0165; // Illustrative rate for non-residential Class 2
className = "Class 2 (Non-Residential)";
break;
case "C1": // Class 3 (Utility Property)
// Class 3 rates are highly complex and often negotiated. Simplified placeholder.
taxRate = 0.05; // Placeholder rate
className = "Class 3 (Utility Property)";
break;
case "C2": // Class 3 (Other)
taxRate = 0.05; // Placeholder rate
className = "Class 3 (Other)";
break;
case "C3": // Class 3 (Land)
taxRate = 0.05; // Placeholder rate
className = "Class 3 (Land)";
break;
case "C4": // Class 4 (Commercial, Industrial, Other)
taxRate = 0.1075; // Illustrative rate for Class 4
className = "Class 4 (Commercial/Industrial)";
break;
default:
resultDiv.innerHTML = "Invalid property class selected.";
return;
}
var estimatedTax = assessedValue * taxRate;
resultDiv.innerHTML = "Estimated Annual Property Tax: " +
"Property Class: " + className + "" +
"Assessed Value: $" + assessedValue.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" +
"Estimated Tax: $" + estimatedTax.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "";
}