New York City Property Tax
The New York City Department of Finance values residential and commercial properties. A tentative value assessment is sent out to property owners on May 1 each year for most communities. A final assessment is then sent out if there aren’t any changes. New York City assessments are based on percentages of market value. The percentages can vary based on the type of property. Property tax rates are set each year by the mayor and by the city council. They can vary depending on the type of property. They’re applied to property values to help determine each homeowner’s annual tax liability. Property taxes are due either in two semi-annual payments for homes with assessed values of more than $250,000 or four quarterly payments for homes with assessed values of $250,000 or less. New York City offers several exemptions and property tax reductions, including exemptions for senior citizens, veterans, and the disabled. The New York State STAR exemption for owner-occupied housing is also available, as well as property tax abatements or reductions for certain individuals.
New York City Income Tax
New York City has a separate city income tax that residents must pay in addition to the state income tax. The city income tax rates vary from year to year. The tax rate you’ll pay depends on your income level and filing status. It’s based on your New York State taxable income. There are no city-specific deductions. But some tax credits specifically offset the New York City income tax.
Other New York City Taxes
New York City charges a sales tax in addition to the state sales tax and the Metropolitan Commuter Transportation District (MCTD) surcharge. But food, prescription drugs, and non-prescription drugs are exempt, as well as inexpensive clothing and footwear. There’s also a state and local tax on hotel rooms for inexpensive to moderately-priced rooms. This tax rate includes New York City and New York State sales taxes, as well as a hotel occupancy tax. Rooms renting for less expensive prices are subject to the same tax rates, but at lesser nightly dollar amount fees. Medallion owners or their agents pay a tax for any cab ride that ends in New York City or starts in the city and ends in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, or Westchester counties. This tax, known as the taxicab ride tax, is generally passed on to consumers. Medallion owners are those who are duly licensed with a medallion by the Taxi Limousine Commission of New York City.
