New York City DOF Finalizes 2016-17 Real Estate Tax Rates

The city’s Department of Finance (DOF) recently finalized the real estate tax rates for tax year 2016-17, which began July 1, 2016, and will end June 30, 2017. The rate for Class 2 residential properties (properties with more than three units) is up slightly, while the rate for Class 4 nonresidential properties (commercial) is down slightly from last year.

The following is a comparison of the annualized tax rates for tax years 2015-16 and 2016-17:

                                                         Tax Year 2015-16             Tax Year 2016-17

Class 1 (1-3 family residential)               19.554%                            19.991%

Class 2 (4 or more residential units)       12.883%                            12.892%

Class 3 (utility property)                            10.813%                            10.934%

Class 4 (nonresidential)                           10.656%                            10.574%

The new tax rates were not in place for the July 1, 2016, tax bill. Adjustments will be made to subsequent tax bills to reflect the changes. The tax rates to be applied for the second half of tax year 2016-17 are as follows, beginning with the tax bill due Jan. 1, 2017:

                                                                                July 1, 2016 Rates             Jan. 1, 2017 Rates

Class 1 (1-3 units residential)                    19.554%                             20.428%

Class 2 (4 or more residential units)          12.883%                             12.901%

Class 3 (utility property)                               10.813%                             11.055%

Class 4 (nonresidential)                              10.656%                             10.492%