Navigating condo and co-op property taxes and assessment appeals in NYC

Property taxes are a major expense for condo and co-op owners in New York City, and recent increases in market values may lead to higher tax bills. Understanding how they are assessed and knowing when to appeal can make a meaningful difference in your building’s financial planning. Here’s what board members need to know.

‍How property taxes are assessed 

Property taxes in NYC are based on the assessed value of a property, which is determined by the Department of Finance. Here’s how they calculate it:

• Smaller buildings (10 units or fewer): The city applies a gross income multiplier based on similar rental buildings.
• Larger buildings (11+ units): The city estimates potential income and expenses using comparable rental properties and applies a capitalization rate to determine the assessed value.

Because assessments are based on previous financial data, they may not always reflect a building’s current financial reality. If you’re concerned about this year’s tax impact, our related article on NYC property values jump explains what’s driving these increases.

When to consider appealing your assessment

Your building’s assessment is based on financial data from the prior year’s Real Property Income and Expense Statements (RPIEs). If your building has experienced changes in occupancy, operating costs, or market conditions, your assessment may not reflect its true value.

You may want to appeal if:

• The assessment is significantly higher than similar properties.
• Your building has experienced a decline in income or an increase in expenses.
• Recent comparable sales suggest a lower market value.

‍How to appeal your property assessment

If you believe your assessment is inaccurate, you can file a protest with the NYC Tax Commission. The deadline for appeals is March 3rd, and the process involves submitting documentation to support your case. Successful appeals often include:

• Financial statements showing income and expenses.
• Market data on similar properties.
• Evidence of recent building repairs or capital expenditures.

A tax professional can help ensure your appeal is well-documented and has the best chance of success.

Key dates to remember

• March 3rd: Deadline for filing a protest.
• May 25th: Final assessment roll released.
• June: Property tax bills issued.
• July 1st: First tax payments due.

Planning ahead

Whether or not you appeal this year, reviewing your tax assessment annually can help your board plan ahead and anticipate potential cost increases. Keeping track of property tax trends and potential appeals can help your board manage costs more effectively.

For more insights on how property tax assessments affect your building, check out our related article: NYC property values jump—what it means for condos & co-ops.

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