NYC City Council Maintains Property Tax Late-Payment Interest Rates for FY2027

On June 30, 2026, the New York City Council passed four resolutions establishing the interest rates for late payment of New York City real property taxes for Fiscal Year 2027, which runs from July 1, 2026 through June 30, 2027. The Council maintained the same rates that have been in effect since Fiscal Year 2025, despite the New York City Banking Commission’s recommendation that several of the rates be increased. 

For FY2027, the Council established the late-payment interest rates at 6%, 9%, and 16%, depending on the property’s assessed value. For cooperative apartments, the assessed value thresholds are applied on a per-residential-unit basis. The Council also maintained the 2.5% rate for certain qualifying installment payment agreements with the Department of Finance. 

FY2027 Adopted Rates 

Category	FY2027 Adopted Rate
Certain installment payment agreements	2.5%
Late payment: assessed value of $250,000 or less	6%
Late payment: assessed value over $250,000 but not over $450,000	9%
Late payment: assessed value over $450,000	16%

The Council’s action rejects the Banking Commission’s FY2027 recommendations of 5% for certain installment payment agreements, 8% for properties with assessed values of $250,000 or less, 15% for properties with assessed values over $250,000 but not over $450,000, and 18% for properties with assessed values over $450,000. 

Current and Historical Rates 

Category	FY2023	FY2024	FY2025	FY2026	FY2027
Certain installment payment agreements	—	2.0%	2.5%	2.5%	2.5%
Late payment: assessed value of $250,000 or less	4%	5%	6%	6%	6%
Late payment: assessed value over $250,000 but not over $450,000	7%	8%	9%	9%	9%
Late payment: assessed value over $450,000	14%	15%	16%	16%	16%

The historical trend is straightforward: the late-payment rates increased by one percentage point in each assessed-value category from FY2023 to FY2024, increased again by one percentage point from FY2024 to FY2025, and then remained unchanged for FY2026 and FY2027. The City Council adopted FY2023 rates of 4%, 7%, and 14%; FY2024 rates of 5%, 8%, and 15%; and FY2025 rates of 6%, 9%, and 16%. The FY2026 rates were also 6%, 9%, and 16%, with the 2.5% rate for certain installment payment agreements. (Rosenberg Estis) 

The Council’s FY2027 resolutions note several reasons for maintaining the current rates. The resolutions state that the prime rate declined from 7.5% to 6.75% since May 2025, that interest rates are expected to see minimal change over the coming year, and that the number of delinquent properties has been declining since Fiscal Year 2023. 

The New York City Department of Finance states that interest is charged on late property taxes and compounds daily. Accordingly, even where the annual rate is unchanged, late payment can still become expensive quickly, particularly for properties in the 16% category. (New York City Government) 

Earlier this year the City Council set the discount rate for the early payment of property tax at 0.5%, unchanged for many years now. 

Pied-à-Terre Surcharge 

These FY2027 rates will also be relevant to the first year of New York City’s new pied-à-terre tax, formally the “Surcharge on Property That Does Not Serve as a Primary Residence.” 

New York Tax Law § 1354 provides that the surcharge is due and payable in the same manner as real property taxes and that the Department of Finance will administer and enforce the surcharge, to the greatest extent practicable, in the same manner used to administer and enforce real property taxes. For the fiscal year beginning July 1, 2026, the statute further provides that the surcharge is due and payable on the same date as the second semi-annual installment of real property taxes (January 1, 2027). 

As a result, unpaid first-year pied-à-terre surcharge amounts should be expected to carry the applicable FY2027 late-payment interest rate, subject to any further Department of Finance guidance. For many high-value properties potentially subject to the pied-à-terre surcharge, the applicable rate may be the 16% category, but the rate depends on assessed value and, for cooperative apartments, assessed value per residential unit. Meanwhile, the pied-à-terre is based on market value, not assessed value. DOF assesses tax class 2 properties at 45% of market value. If you have a tax class 2 condo with a DOF market value over $1 million, your assessed value would be over $450,000 (at 45%), making the pied-à-terre surcharge subject to a 16% interest rate for late payment. 

For property owners receiving a pied-à-terre surcharge bill in Year 1, the interest-rate issue should not be overlooked. A dispute over primary residence status or valuation should be evaluated promptly, because unpaid amounts may accrue daily – compounding interest at the applicable FY2027 property tax late-payment rate.