July 1 was the official start of the NYC Fiscal New Year! On June 30, 2024, the New York City Council passed the $112 billion budget for fiscal year 2025 (July 1, 2024 to June 30, 2025).
The city increased the property tax revenue budget +$1 billion to $33.7 billion, which is up +3.1% from last year’s FY24 $32.7 billion. Property tax is the single largest revenue source, accounting for 44% of all New York City tax revenue.
Tax Rates
The city set the new tax year 2024/25 property tax rates, which are subject to change by November 1, 2024. *
- Tax class 1 is primarily one- to three-family homes. The rate increased 81.4 bps. This year’s increase would be the single largest percentage increase in 13 years. Combined with the +4.65% increase in taxable assessed value, we estimate taxes will increase +8.9% overall.
- Tax class 2 is other residential property, primarily rentals, co-ops, and condos. The rate decreased 20.6 bps. Combined with the +4.53% increase in taxable assessed value, we estimate taxes will increase +2.8% overall.
- Tax class 3 is utility property.
- Tax class 4 is other property, primarily commercial property like office, retail, and hotel. The rate increased 9.4 bps. This year’s rate would be the third highest in 20 years. Combined with the +3.47% increase in taxable assessed value, we estimate taxes will increase +4.4% overall.
On June 1, 2024, the Department of Finance sent the tax bills for payment due July 1, 2024. You can view those bills online. DOF used the prior (FY24) tax rate to compute the bills. DOF will use the new (FY25) tax rates for the November 2024 bills, with adjustments for the difference, for payments due on or after January 1, 2025.
* Pending state legislation, if passed soon, would enable the City Council to pass legislation by November 1, 2024, that would limit the tax shift to tax class 1 (one- to three-family homes). Similar laws have been passed most years. For example in 2023, the City Council set the tax rates on June 30, and then amended them on September 28. If this year’s legislation passes, we anticipate a reduction in the tax class 1 rate and increases in the rates for tax classes 2-4.
Interest Rates for Late Payments of Property Tax
The city set the interest rates for the late payment of property tax for FY25. Each of the three tiers increased 100 bps from last year FY24. Interest compounds daily.
- June 3, 2024 – RPIE-2023 and Storefront Registry. If you failed to timely file, you can still file the RPIE now and avoid the potential monetary penalties. DOF uses the RPIE-2023 to estimate next year’s 2025/26 assessed values.
- August 15, 2024 – file Supplemental Storefront Registration to report storefronts vacant as of June 30, 2024. Class 2 and 4 property owners who have filed storefront information must file a form to report any property ownership changes or storefront vacancies that occurred between January 1 and June 30, 2024, or the date you sold the property, whichever is earlier.
- October 24, 2024 – file New York City real estate tax certiorari Article 7 petitions in the local county supreme court to preserve the challenge to the tax year 2024/25 property taxes.
- March 1, 2025 – apply for the Industrial & Commercial Abatement Program (ICAP) property tax abatement.
- March 15, 2025 – apply for the Childcare Center property tax abatement.