How is New York City property tax calculated?

NYC taxes the assessed value, not the full market value. For Class 1 homes (1-3 family), assessed value is 6% of market value, then the Class 1 tax rate (about 20.085%) is applied — which works out to roughly 0.88% of market value before exemptions.

What is the assessment ratio for NYC homes?

Class 1 properties (1-3 family homes) are assessed at 6% of their market value as estimated by the Department of Finance. New York State also caps how fast that assessed value can rise each year.

What is the STAR exemption?

The School Tax Relief (STAR) program reduces the school-tax portion of your bill for eligible owner-occupied primary residences. Basic STAR provides a fixed reduction; the calculator lets you subtract an approximate STAR benefit.

Is my data sent anywhere?

No. All figures are computed locally in your browser. Your property value and inputs are never uploaded or stored on a server.

New York City Property Tax Estimator

New York City property tax estimator

Estimate your annual New York City property tax. NYC does not tax market value directly — it taxes a small assessed value, then applies a high nominal tax rate. For a 1-3 family home (Class 1) the net effect is roughly 0.88% of market value. Enter your home’s value and the tool walks through assessment, rate and the STAR exemption.

How it works

The chain for a Class 1 home is:

assessed_value = market_value * assessment_ratio   (6% for Class 1)
gross_tax      = assessed_value * tax_rate         (~20.085% Class 1)
net_tax        = gross_tax - star_exemption

Because 6% x 20.085% is about 1.2% of assessed but only ~0.88% of full market value once the assessment cap and exemptions are considered, NYC’s effective rate is low compared with its nominal rate. The STAR exemption further reduces the school-tax share for primary residences.

Example and notes

A home with a $1,000,000 market value: assessed value is 6% = $60,000; the Class 1 rate of ~20.085% gives a gross tax of about $12,051. Subtracting an approximate $300 Basic STAR benefit leaves roughly $11,751 a year. Actual bills depend on the DOF assessment, assessment-increase caps and your exemptions. Estimates only, not tax advice.