A payment plan is an agreement between you and the Department of Finance to pay the amount you owe over time instead of paying the full amount all at once.
To request a payment plan, you must submit a Property Tax Payment Agreement Request and provide proof of identity, such as a copy of your driver’s license or other ID, and proof of relationship to the property, such as a copy of the most recently recorded deed, power of attorney, or corporation papers.
Payment plans vs. paying your bill all at once
A payment plan allows you to make a series of smaller payments instead of making one large payment, but it increases the total amount you will pay. This is because interest will continue to be added to your balance until the amount you owe is completely paid off. For example, if you owe $10,000 and you choose a five-year payment plan with 9% interest, you will end up paying a total of more than $12,000.
When payment plans can be used
Payment plans can be used for property taxes and many other property charges. If you have missed payments on your property tax bills, and you have an outstanding balance, you can enter into a payment plan. If your property is at risk for a lien sale or in rem action, you can still enter into a payment plan. However, you cannot enter into a payment plan with the Department of Finance if a tax lien sale or an in rem action has taken place.
Payment Plan Options
The Department of Finance offers payment agreements with:
PT AID Program
The Property Tax and Interest Deferral (PT AID) Program allows eligible homeowners to defer all or part of their property tax payments, or pay only a small percentage based on their income, so that they can remain in their homes. If you know someone who is struggling to pay their property taxes, please visit the PT AID page for more information.
The annual interest rate you will be charged under a payment plan is set by law and depends on the assessed value of your property:
Annual Interest Rate
Assessed Value of Property
|4%||Less than or equal to $250,000||July 1, 2022, through June 30, 2023|
|7%||Greater than $250,000 but less than or equal to $450,000||July 1, 2022, through June 30, 2023|
|14%||Greater than $450,000||July 1, 2022, through June 30, 2023|
Payment Plan Rules
Once you have entered into a payment agreement, you must pay both your installment amount and new charges. If you fail to pay both for a period of six months:
Extenuating circumstances are limited to the following four categories:
Extenuating Circumstances Payment Plan Reinstatement Request Form
Requesting a Property Tax Payment Agreement
An owner or an owner's authorized agent may submit a Property Tax Payment Agreement Request.
To complete the application process, you must provide:
If your property was already subject to an in rem enforcement action, you must obtain approval from the Department of Housing Preservation and Development for a payment agreement.
Sidewalk Repair Charges: If the charge is between $250 and $5,000 and the property is a 1- to 6-family home, you can enter into a payment plan. You can also enter into a payment plan for any property with an assessed value of $30,000 or less. For sidewalk repair charges, you can submit a Sidewalk Repair Payment Plan Request as soon as you receive your bill, and you must apply within one year of the charge. For sidewalk-repair charges, the annual interest rate is 8.5%
For more information about payment plans, call the Department of Finance’s Ombudsman Lien Sale Information Line at 212-440-5408 or visit a Finance Business Center.
For more information about payment plans to pay off your outstanding water and sewer debt, please call NYC DEP at 718-595-7000, visit a NYC DEP Borough Office or go to http://www.nyc.gov/html/dep/html/customer_services/lienfaq.shml.