Calculating Your Annual Property Tax

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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
$16,000.00

2. Multiply Taxable Value by the Tax Rate (example Class 1)
x .20309

(20.309%)

Your Taxes
$3,249.44

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 with the tax rate.
Step 1: Estimate the property's market value. The Department of Finance determines the market value differently depending on they type of property you own.
Step 2: Multiply the estimated market value by the level of assessment,î which is 6% (Tax Class 1) or 45% (all other classes).
For class 1 properties and class 2 properties with 10 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 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, SCHE, 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 Benefits for Businesses.
Example for a class one property, worth $450,000, with an Enhanced STAR exemption:

Market Value
$450,000.00

Class 1 Assessment Ratio
X .06

Assessed Value
$27,000.00

Enhanced STAR Exemption Value
- $3,460.00

Taxable Value
$23,540.00

Sample Class 1 Tax Rate
X .20385

Annual Tax in Dollars for above Example
$4,798.63