NYC Property Taxes Expected to Rise as Values Inch Upward

Mayor Zohran Mamdani’s pied-à-terre tax targeting luxury second homes in New York City, which will take effect July 1, may have already had an impact on estimated tax rates for the city’s upcoming fiscal year.

The number of homes under the tax code classified as Class 1 — single-family homes to two- and three-unit buildings — in the entire city rose by a mere dozen. At the same time, the number of Class 2 homes — most apartments and condos — increased by 16,241 units, according to the final Department of Finance assessment roll published on Tuesday.

The assessment roll shows the total number of Class 1 dwellings in New York City inched up from 1,096,932 to 1,096,944. At the same time, the number of tax lots fell by 0.03 percent.

Manhattan had a gain of 23 Class 1 homes, while Queens had 361. The Bronx lost 522, Brooklyn lost 222 and Staten Island lost 373 housing units, according to the statistics.

That didn’t stop city assessors from bringing the value of the remaining homes up by 5.16 percent, with the taxable value rising 3.53 percent.

The count of Class 2 dwellings — apartments in buildings with four or more units — increased from 2,034,308 to 2,050,549 units, with their market value rising by 6.65 percent and the taxable value rising by 4.86 percent. Staten Island was the only borough to lose Class 2 apartments — down 3.25 percent — as the unit count fell from 18,715 to 18,107.

Average taxes on Class 1 homes are still expected to rise $272 from $7,655 to $7,927 per year.

Regulated rental taxes are not frozen and will see a $22 per unit bump from $3,891 to $3,913, while unregulated ones will go up by $1,062 per unit, from $7,907 to $8,969 for each apartment.

Class 2 condominiums will rise by $676 from $15,157 to $15,833 per unit, while co-ops will see average bills rise by $394 from $9,504 to $9,898 per apartment.

Trophy office buildings will go up $1.20 per foot to $23.58 a foot, while Class B offices will see an average rise of 44 cents a foot to $15.31 per foot.

Hotels, which are now facing extra personnel costs due to the union contract kicking in along with new taxes on July 1, will pay 59 cents more per square foot with a rise from $12.50 to $13.09 per foot, with luxury hotels going up the same 59 cents a foot from $15.16 to $15.75 per foot.

Brooklyn’s taxable property values have risen the most in the city at 7.17 percent. The smallest rise of 3.77 percent was in Staten Island, despite its market values rising by 5.68 percent due to various caps on increases.

The final Department of Finance assessment roll shows citywide taxable values rose 5.01 percent to $308.52 billion, while market values rose 5.27 percent to $1.66 trillion.

Manhattan’s market values rose the least to 3.62 percent, while its taxable values rose 4.32 percent. Tax bills, likely with the current tax rates but with the new assessed values, are due July 1.

Once the budget is finalized, the City Council will fix tax rates. If there are issues because one class or another will be paying too much, a home rule message will be sent to Albany — which has happened each year for over a decade — and the new rates will be adjusted for the Jan. 1, 2027, bills.