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Calculating your annual property tax
To estimate your annual property tax:
Multiply the taxable value of your property by the current tax rate for your property's tax class.
Property tax rates change each year, as well as the value of exemptions and abatements. The actual taxes you pay in July might be different.
Example for a tax class 1 property with a taxable value of $16,000:
| 1. Enter the Taxable Value from the Notice of Property Value | $16,000.00 | |
| 2. Multiply Taxable Value by the Tax Rate (example Class 1) | x .19843 | (19.843%) |
| Annual Tax | $3,174.88 |
Tax rates change every year. The numbers above are only an estimate of the tax you will owe if the tax rate remains the same.
Calculating the taxable value
A property's annual property tax bill is calculated by multiplying the taxable value by the tax rate.
Step 1: Estimate the property's market value. The Department of Finance determines the market value differently depending on the type of property you own.
Step 2: Multiply the estimated market value by the level of assessment, which is 6% (Tax Class 1) or 45% (all other classes).
For class 1 properties and class 2 properties with 10 residential units or less
| Class 1: | Assessed Value (AV) cannot increase more than 6 percent each year or more than 20 percent in five years. |
| Class 2: | Assessed Value (AV) cannot increase more than 8 percent each year or more than 30 percent in five years. |
Step 2a: Apply state law rules which limit how much the Assessed Value (AV) can increase from one year to the next.
The lower amount between Step 2 and Step 2A is your assessed value.
The limitations on assessment increases outlined here explain why many assessments take several years to catch up with market value growth or decline.
| Example: | Year 1 | Year 2 | Year 3 |
| Market Value | 100,000 | 150,000 | 140,000 |
| Actual Assessed Value | 6,000 | 6,360 | 6,741 |
| Assessed Value if No Limitations | 6,000 | 9,000 | 8,400 |
For class 2 properties with 11 residential units or more and class 4 properties
Step 2B: AV changes are phased in over five years.
Step 3: If the property has exemptions (for example STAR, the Senior Citizen Homeowners’ Exemption, or J-51), subtract the total exempt value. The resulting amount is the taxable value. The exempt value does not include abatements, which are subtracted from the annual property tax amount. Learn about property tax benefits and benefits for businesses.
Example for a class one property, worth $450,000, receiving the Senior Citizen Homeowners’ Exemption:
| Market Value | $450,000.00 |
| Class 1 Assessment Ratio | X .06 |
| Assessed Value | $27,000.00 |
| Senior Citizen Homeowners’ Exemption Value | - $5,400.00 |
| Taxable Value | $21,600.00 |
| Sample Class 1 Tax Rate | X .19843 |
| Annual Tax | $4,286.09 |