Property Tax Rates for FY2016 Announced

by Laura Matiz 

The new property tax rates for fiscal year 2016—which started on July 1, 2015—were announced on June 26th after the City Council adopted the Mayor’s budget. For a fuller explanation on the confusing property tax system, see The Byzantine NYC Property Tax System (April 26, 2015). 

The Class 1 (1-3 family homes) property tax rate went up 0.00397 points to 19.554% while Class 2 (condos, coop, rental buildings) property tax rate went up 0.00028 points to 12.883%. As explained in that earlier article, the Class 1 property tax rate is applied to 6% of the market value, while for Class 2 properties, the  rate is applied to 45% of the market value. 

In the table below, I have computed the "true rate" on market value for each class.

Property Class	FY2016 Rate	On Market Value	True Rate
1-3 Family Homes (Class 1)	19.554%	6%	1.173%
Condos, Coops, Rentals (Class 2)	12.883%	45%	5.797%

Source: The Real Estate Board of New York (REBNY) Newsletter

Category: Property Tax