The following is a list of terms to help you understand the information and figures on the Annual Notice of Property Value (NOPV) and property tax bills.
Abatement
Abatements reduce your taxes after they've been calculated by applying credits to the dollar amount of taxes owed. Abatements aren’t listed on the NOPV, but any granted abatements will appear on your property tax bill.
Annual Notice of Property Value (NOPV)
The NOPV is mailed to property owners in New York City in mid-January. It’s not a bill and doesn’t require a response or payment. The NOPV that is mailed in mid-January reflects the status of your property as of January 5 of the same year. It is used to determine your property taxes for the tax year that starts in July.
Assessed Value
A property’s assessed value is calculated by multiplying your market value by the assessment percentage. For class 1 properties, it is 6%. For class 2 and 4 properties, it is 45%. Assessed Value can be reduced by applying exemptions.
Assessment Percentage
The assessment percentage is a fixed percentage of market value. For class 1 properties, it is 6%. For class 2 and 4 properties, it is 45%.
Effective Market Value
Your effective market value is calculated by dividing your assessed value by the assessment percentage. This is the amount you are “effectively” paying taxes on.
Estimated Property Tax
Your NOPV includes an estimate of your property taxes for the upcoming tax year. This estimate is provided for budgeting purposes. The actual amount of taxes you will owe may differ. DOF uses the taxable value from your NOPV and multiplies it by the current tax rate to determine the estimate.
Exemption Value
The exemption value is the amount or percentage of the assessed value that is not taxable as a result of any property tax exemptions you receive, such as the Senior Citizen Homeowners’ Exemption (SCHE) or Veterans Exemption. The exemption amount on your actual tax bill may be different than the amount on your NOPV once the new tax year begins.
Final Assessment Roll
The Final Assessment Roll is published at the end of May each year. It may contain property value updates with lower or higher amounts or the same amounts as those in the Notice of Property Value or the Tentative Assessment Roll in mid-January.
Market Value
Market value is the Department of Finance’s estimated value for your property or any land on the property. It’s listed on the NOPV. For tax class 1 DOF analyzes data such as the recent selling prices of similar properties in your neighborhood. Similar properties are those that are close in size, style, and age to yours. For the other tax classes income and expense filings, or those of similar buildings, is used to determine the market value.
Revised Notice of Property Value
Between the issuance of your NOPV in mid-January and the posting of the Final Assessment Roll, which happens at the end of May, you may get the Revised NOPV. Reasons for getting a Revised NOPV include that your property value or assessment value may have changed, a mistake may be corrected, an appeal, request for review, or request to update may have been granted, or an exemption may have been approved, denied, or removed.
Taxable Value
Property taxes are calculated by multiplying the Taxable Value by the tax rate. DOF uses the Taxable Value from your NOPV and multiplies it by the current tax rate to estimate the property taxes you will have to pay in the upcoming year.
Tax Classes
Every property in New York City is assigned to a tax class based on the property's size and how it is used.
1-, 2-, and 3-family homes
Condo buildings that are 3 stories or less
Small stores or offices with 1-2 apartments attached
Vacant land that is zoned for residential use
Property that isn't in Class 1 and is mostly residential
Primarily residential property with 4 or more units
Co-op and condo buildings that are 4 stories or higher
Small stores or offices with 2 or more apartments attached
Property with equipment owned by a gas, telephone, or electric company
All other commercial and industrial property, such as offices and factories
Vacant land that is not zoned for residential use
Tax Rates
Your property tax rate is used to determine the tax you owe and is based on your tax class. Rates are set annually by the New York City Council, usually in November.
The City Council adopted new property tax rates for the tax year that began on July 1, 2019, and ends June 30, 2020. The new rates will be reflected on the January 2020 property tax bill.
The rates for Fiscal Year 2019/2020 are:
Tax Year
Also called the fiscal year, the City’s tax year begins on July 1 and ends on June 30 every year. There are four quarters in the City’s tax year:
- 1st Quarter: July 1 - September 30
- 2nd Quarter: October 1 - December 31
- 3rd Quarter: January 1 - March 31
- 4th Quarter: April 1 - June 30
Tentative Assessment Roll
The Department of Finance (DOF) publishes the Tentative Assessment Roll in mid-January. The roll contains the assessed values of NYC properties for the next fiscal year which begins the following July 1. The information in the NOPV is based on the Tentative Assessment Roll.
Once the tentative roll is published, property owners are then given a specific period of time to request a review from DOF of their market value or correct property data errors. During this time period, property owners can also request a correction of their assessed value or challenge their property tax class or exemption denials with the Tax Commission before the Final Assessment Roll is issued in late May.
Transitional Assessed Value
Changes to the assessed value of class 2 and 4 properties are phased in over a five-year period. The transitional assessed value represents the changes being phased in for the coming tax year.
