Estimating Market Value

By law, Finance is required to estimate the market value of every property in the City as of January 5th each year. Finance mails an annual Notice of Property Value in January to all NYC taxpayers to advise them of their property's estimated market value, which is used to determine the property's annual assessment - the amount of property tax an owner will be asked to pay for the next fiscal (tax) year.

Finance uses one of three approaches to determine a property's market value, depending on the type of property:

• Sales: Finance reviews prices of similar properties that sold in the last three years to estimate the market value for your property.  This method is used most often to value small residential properties (e.g., 1-,2-, and 3-family homes and vacant land.)
• Income:  Finance estimates your property value based on the income that you get for renting your property.  Finance estimates the income based on information you provide about your property, or market data.  This approach is generally used for income-producing properties, such as office and apartment buildings.  We either divide the net income by a capitalization rate (an estimated rate of return) or we multiply the gross income by a multiplier. 
• Cost: Finance estimates the land value and the cost of constructing or replacing your building.  This method is used for new construction and renovations, specialty properties, such as churches, museum and stadia, and utilities.
• Cooperatives and Condominiums:Finance values cooperative and residential condominium buildings as if they were rental apartment buildings using the income approach.  Finance's value, is not based on the sales price of individual co-op or condo units but on an estimate of the rent that would be charged for the units if they were rental apartments.

Related Links
Assessment Roll
Calculating Your Annual Property Taxes
Statements of Assessment Procedure

Forms and Publications

"Annual Notice of Property Value" Brochure
 Download Brochure (396k)

Request to Update Property Data
(for Class 1 properties)
Download Form (27.6k)

Request for Review of Property Tax Assessment
(for Class 2 and 4 properties)
Download Form (225.9k)