NYC’s Record-High Prop Tax Roll This Year: What it Means for Landlords

By R&E's Benjamin M. Williams.

📅 On January 15th, the NYC Department of Finance (DOF) released the tax year 2025/26 tentative assessment roll. Despite market disruptions, citywide market value rose by 5.7% to a record $1.58 trillion, exceeding $1.5 trillion for the first time. Taxable billable assessed value also hit a record, up 3.9% to $311 billion.

🏢 These record-high values may surprise property owners, especially those with offices facing high vacancies. It’s crucial to review whether these assessments fairly reflect the true value of your property.

⏳ Notably, the Tax Commission’s filing deadline has been extended to March 3, 2025, providing extra time for owners to challenge valuations. Below, we break down key changes and steps you can take.

Key Highlights

🏠 Residential Properties: Tax Classes 1 and 2

• Market Value Growth:
  • Manhattan residential rentals surged +6.61% (regulated +6.18%, unregulated +6.80%).
  • Residential co-ops and condos generally rose, led by Manhattan (co-ops +5.34%, condos +4.61%).
  • Tax Class 1 (1-3 family homes) experienced increases over 5%, with average tax bills rising by over $400.
• Declines:
  • Bronx residential condos saw a rare decrease, dropping -4.04%.

🏛️️ Tax Class 4 Commercial: Offices, Stores, and Hotels

• Market Value Trends:
  • Manhattan office buildings increased by 1.55% overall, including Trophy +1.36%, Class A +1.46%, Class B +0.78%, Other Class +1.11%, and Condo Office +2.29%.
  • Retail stores rose over 3%, signaling recovery. Manhattan retail condos saw taxes exceeding $29 per square foot.
  • Hotels increased by over 5%, driven by tourism and alternate uses like migrant housing.

Why It Matters

🚫 Higher Assessments = Higher Taxes

Citywide market value reached a record $1.58 trillion, with taxable assessed value climbing to $311 billion. These increases significantly impact tax bills, especially for properties in tax classes 2 and 4.

Discrepancies in Valuation

DOF assessments rely on complex formulas and comparables, which can sometimes overestimate property values. A detailed review of your assessment is essential.

Legal Implications

If you believe your assessment is inaccurate, it’s critical to act. March 3, 2025, is the filing deadline for tax classes 2 and 4, while tax class 1 has until March 17, 2025. Assessments are based on your property’s condition as of January 5, 2025.

What You Can Do

 Find Your Assessment

• Visit the NYC Department of Finance website.
• Use the BBL Search tool to locate your property’s 2025–2026 Tentative Assessment and compare it to last year’s figures.
• Review your Notice of Property Value.

 Analyze Comparables

• Review nearby properties to see how much they rent for or sold for.
• Confirm that DOF used accurate and up-to-date data for your valuation.

 File a Protest

• Consult with a property tax certiorari attorney to challenge unfair valuations.

🙋️ Need Help?

Navigating NYC’s property tax system can be daunting. As a property tax protest attorney, I can:

• Review your property’s assessment
• Identify potential reductions
• File your tax appeal on time

📱 Don’t wait! Contact me or your property tax certiorari attorney to lower your tax bill.

Founded in 1975, Rosenberg & Estis, P.C. is widely recognized as one of New York City’s pre-eminent real estate law firms. R&E provides full-service representation and advice in every aspect of real estate, from performing due diligence and evaluating financing, to handling joint ventures, acquisitions and leasing, construction and design team agreements, property tax exemptions and abatements, land use and zoning matters, Real Property Income & Expense (RPIE) filings, real estate tax certiorari, co-op and condo offering plan filings and board representation, distressed situations workouts, foreclosures and bankruptcies, trust and estate planning, as well as the litigations and negotiations which sometimes ensue when deal-making. R&E’s wealth of experience in New York real estate makes it the ideal thought partner for owners, developers, not-for-profit corporations, educational institutions, sponsors, equity investors and lenders in both real estate transactions and in all court venues.