You are required to renew your Disabled Homeowners’ Exemption and Clergy Exemption every year. You are required to renew your Senior Citizen Homeowners’ Exemption every two years.
If you received a notice to renew you exemption and have not done so, or have not received a notice stating that your renewal was approved, the exemption will not appear on your NOPV and will not be calculated into the estimated property tax.
You can get information about renewing your SCHE exemption, go to the Senior Citizen Homeowners' Exemption (SCHE) Renewal page.
You can get information about renewing your DHE exemption, go to the Disabled Homeowners' Exemption (DHE) Renewal page.
The value of your property, which includes the market value and assessed value, plays a key role in the calculation of your property taxes. Exemptions can help reduce the value of your property.
Market Value
To calculate your annual property tax, the Department of Finance (DOF) follows several steps.
Step 1: Market value is determined based on your tax class and an analysis of sales, income data, or the cost of reproducing the building.
Step 2: Assessed value is calculated by multiplying the market value by the assessment percentage. The assessment percentage is a fixed percentage of market value. For class 1 properties, it's 6%. For class 2 and 4 properties, it's 45%.
Step 3: For certain properties, the assessed value will be adjusted to account for the State limit on yearly assessment increases. Tax Class 1 and smaller Tax Class 2 properties (fewer than 11 units) have annual assessment caps. Most Tax Class 2 and Tax Class 4 properties also have limitations on assessment increases. This is called the transitional assessed value.
Step 4: Property tax exemption benefits that you receive are subtracted from the assessed value or transitional assessed value, to get the taxable value.
Step 5: The taxable value is multiplied by the tax rate to get the dollar amount of your taxes.
Step 6: Abatements and other credits you receive are applied to the tax dollar amount to reduce the amount
The amount owed may also include:
Estimated Property Taxes
Your NOPV includes an estimate of your property taxes for the upcoming tax year. This estimate is provided for budgeting purposes. The actual amount of taxes you will owe may differ. DOF uses the taxable value from your NOPV and multiplies it by the current tax rate to determine the estimate.
Note that:
Tax Class 1, 1A, 1B, 1C
1- to 3-family homes are assessed based upon comparable sales. Only properties that have actually sold are used to assess your home based upon their final sales price. Properties that are currently on the market, or the original asking price of a sold property, are not factored into the comparable sales calculation.
Some property owners will find that their market value has decreased since last year. Your property taxes are not based on your market value. Rather they are based on your assessed value. Because assessed value increases are capped each year and cannot go up more than 6% per year or 20% over five years, your property may be assessed at a value lower than the market value. When your property’s market value declines, assessed value can increase to catch up but cannot increase more than the caps. Your effective market value is the property value you are effectively paying tax on.
The property tax rate on class 1 homes went down in Tax Year 2021/22. However, if your assessed value has increased it is possible that the amount you owe in property taxes will increase.
You can request a review of your market value if you believe the Department of Finance has made a mistake. However, your property tax will not go down unless you can prove that your market value should be less than your effective market value.
Tax Class 2A, 2B, 2C
State law requires that the Department of Finance assess all tax class 2 buildings as income producing. Therefore, your property is assessed by reviewing comparable rental units and estimating the amount of income your property could generate.
Some property owners will find that their market value has decreased since last year. Your property taxes are not based on your market value. Rather they are based on your assessed value. Because assessed value increases are capped each year and cannot go up more than 8% per year or 30% over five years, your property may be assessed at a value lower than the market value. When your property’s market value declines, assessed value can increase to catch up but cannot increase more than the caps. Your effective market value is the property value you are effectively paying tax on.
The property tax rate on class 2 properties went down in Tax Year 2021/22. However, if your assessed value has increased it is possible that the amount you owe in property taxes will increase.
You can request a review of your market value if you believe the Department of Finance has made a mistake. However, your property tax will not go down unless you can prove that your market value should be less than your effective market value.
Tax Class 2 and 4
Large co-ops, rental buildings and commercial properties are valued based on income and expense data taken from the annual RPIE filing.
Some property owners will find that their market value has decreased since last year. Your property taxes are not based on your market value. Rather they are based on your actual assessed value or transitional assessed value. The property’s actual assessed value is always 45% of the market value. However, the transitional assessed value phases in changes over time. Transitional assessed value includes increases from previous years that have been spread out over a five-year period.
Transitional assessed value protects you from paying the full amount of an increase in actual assessed value in a single year. According to the law, the Department of Finance must bill you based on whichever the lower value between your actual assessed value or transitional assessed value.
Even if your market value went down this year it is possible that the increases from prior years are still being phased in as part of your transitional assessed value. You can request a review of your market value if you believe the Department of Finance has made a mistake. However, your property tax will not go down unless you can prove that your market value has gone down enough to cancel out transitional assessment increases from the past.
If you disagree with the information on your Notice of Property Value, you can request an appeal, review, update, or correction.
Assessed Value, Tax Class, or Exemption Appeal
You can request an appeal with the NYC Tax Commission if you believe:
To learn more, go to the Property Value Appeal page.
Market Value Review
You can file a Request for Review (RFR) if you think the market value on your NOPV is incorrect. Note that even if DOF agrees to change your market value, this will not immediately change the amount of taxes you owe, unless the new market value is lower than the effect market value or it results in the assessed value being reduced.
To learn more, go to the Property Market Value Review page.
Property Description Update
You can ask the Department of Finance to correct or update the square footage, number of units, and other descriptive information that appears on the NOPV by filing a Request to Update (RTU) application. If you are in Tax Class 1 and 4, you can also request an update to your vacant land description.
Even if DOF agrees to change your property or vacant land description, this isn’t likely to immediately change the amount of taxes you owe.
To learn more, go to the Property or Vacant Land Description Update page.
Administrative Review
If your property’s value has changed since the January NOPV, the Department of Finance will mail you a Revised Notice of Property Value.
You may receive a Revised NOPV anytime between the issuance of your Notice of Property Value in mid-January and the posting of the Final Assessment Roll at the end of May.
You will get the Revised NOPV if:
If you don't agree with the assessed value on your Revised Notice of Property Value, you have 20 days from the date of the notice to protest the assessed value with the Tax Commission.
Final Assessment Roll
The Final Assessment Roll is published at the end of May each year. It may contain property value updates with lower or higher amounts or the same amounts as those in the Tentative Assessment Roll or January Notice of Property Value.
A change in property value may be the result of:
Remissions After Final Assessment Roll
After the Final Assessment Roll is posted, if your market value or assessment is changed or your exemption is changed, denied or revoked by DOF or the Tax Commission, you will get a remission notice from DOF.
Remission notices are not posted on the DOF website, but remission notice changes will be reflected on your next property tax bill. If you want to protest the change, you have 20 days from the date of the remission notice to do so.
Along with the City’s assessment of property value, description, estimated taxes, exemptions, and other information about your property, the NOPV includes:
If you lost or never received your NOPV, you can view and print it online or request a copy by mail. Translated copies of generic NOPVs will be available in Arabic, Bengali, Chinese, French, Haitian Creole, Korean, Polish, Russian, Spanish, and Urdu.
Property-Specific NOPV
Online
By Email or Mail
If you provide an email address, the copy will be emailed within 5 business days. If no email address is provided, the copy will be mailed within 5 business days.
You can learn about the Annual Notice of Property Value (NOPV) and how the City assesses and values your property at a virtual event.
At NOPV events, you can:
Tax Classes
Every property in New York City is assigned to a tax class based on the property's size and how it is used.
| Tax Class 1 | Tax Class 2 |
|---|---|
1-, 2-, and 3-family homes Condo buildings that are 3 stories or less Small stores or offices with 1-2 apartments attached Vacant land that is zoned for residential use | Property that isn't in Class 1 and is mostly residential Primarily residential property with 4 or more units Co-op and condo buildings that are 4 stories or higher Small stores or offices with 2 or more apartments attached |
| Tax Class 3 | Tax Class 4 |
Property with equipment owned by a gas, telephone, or electric company | All other commercial and industrial property, such as offices and factories Vacant land that is not zoned for residential use |
The following is a list of terms to help you understand the information and figures on the Annual Notice of Property Value (NOPV) and property tax bills.
Abatement
Abatements reduce your taxes after they've been calculated by applying credits to the dollar amount of taxes owed. Abatements aren’t listed on the NOPV, but any granted abatements will appear on your property tax bill.
Annual Notice of Property Value (NOPV)
The NOPV is mailed to property owners in New York City in mid-January. It’s not a bill and doesn’t require a response or payment. The NOPV that is mailed in mid-January reflects the status of your property as of January 5 of the same year. It is used to determine your property taxes for the tax year that starts in July.
Assessed Value
A property’s assessed value is calculated by multiplying your market value by the assessment percentage. For class 1 properties, it is 6%. For class 2 and 4 properties, it is 45%. Assessed Value can be reduced by applying exemptions.
Assessment Percentage
The assessment percentage is a fixed percentage of market value. For class 1 properties, it is 6%. For class 2 and 4 properties, it is 45%.
Effective Market Value
Your effective market value is calculated by dividing your assessed value by the assessment percentage. This is the amount you are “effectively” paying taxes on.
Estimated Property Tax
Your NOPV includes an estimate of your property taxes for the upcoming tax year. This estimate is provided for budgeting purposes. The actual amount of taxes you will owe may differ. DOF uses the taxable value from your NOPV and multiplies it by the current tax rate to determine the estimate.
Exemption Value
The exemption value is the amount or percentage of the assessed value that is not taxable as a result of any property tax exemptions you receive, such as the Senior Citizen Homeowners’ Exemption (SCHE) or Veterans Exemption. The exemption amount on your actual tax bill may be different than the amount on your NOPV once the new tax year begins.
Final Assessment Roll
The Final Assessment Roll is published at the end of May each year. It may contain property value updates with lower or higher amounts or the same amounts as those in the Notice of Property Value or the Tentative Assessment Roll in mid-January.
Market Value
Market value is the Department of Finance’s estimated value for your property or any land on the property. It’s listed on the NOPV. For tax class 1 DOF analyzes data such as the recent selling prices of similar properties in your neighborhood. Similar properties are those that are close in size, style, and age to yours. For the other tax classes income and expense filings, or those of similar buildings, is used to determine the market value.
Revised Notice of Property Value
Between the issuance of your NOPV in mid-January and the posting of the Final Assessment Roll, which happens at the end of May, you may get the Revised NOPV. Reasons for getting a Revised NOPV include that your property value or assessment value may have changed, a mistake may be corrected, an appeal, request for review, or request to update may have been granted, or an exemption may have been approved, denied, or removed.
Taxable Value
Property taxes are calculated by multiplying the Taxable Value by the tax rate. DOF uses the Taxable Value from your NOPV and multiplies it by the current tax rate to estimate the property taxes you will have to pay in the upcoming year.
The NYC Residential Property Taxes booklet provides information for homeowners about:
You can download the guide online or request a paper copy by mail.
NOPV Assistance
If you have questions about the information on your NOPV or need assistance with your property assessment or account, you can get help.
