Free tool
NYC commercial property tax calculator
Own, buy or lease space in an office building, a store or a warehouse in New York City? Enter the city's market value to see the yearly Class 4 property tax, what is still phasing in and what a tenant's share comes to.
Property tax a year
$976,320
4.88% of market value.
At the Class 4 rate of 10.848% (tax year 2025/26, the latest the Department of Finance lists).
| Assessed value45% of $20,000,000 | $9,000,000 |
|---|---|
| Taxable value | $9,000,000 |
| Tax at 10.848% | $976,320 |
| Yearly tax | $976,320 |
An estimate from the city's published Class 4 rules and rate, not tax or legal advice. It leaves out PILOTs, interest and charges outside the tax. The bill in the city's property tax records is the actual amount.
How the tax is figured
- Market value. The Department of Finance estimates what the property is worth, for commercial buildings mainly from the income it can earn. It is on the Notice of Property Value mailed each January.
- Assessed value. Class 4 property is assessed at 45% of market value.
- Phase-in. Changes in the assessment phase in over five years, 20% of each change a year. The bill uses the lower of the actual and the transitional assessed value. Physical changes count in full right away.
- Tax. Exemptions come off the assessed value, the Class 4 rate of 10.848% (tax year 2025/26) applies to the rest, and abatements such as ICAP come off the tax.
Sources: NYC Department of Finance, property tax rates; NYC Department of Finance, determining your assessed value; NYC Department of Finance, transitional assessed value, checked October 2026. The calculator covers Class 4 only. It is not tax or legal advice: the city's property tax records show the actual bill.
What it costs at common market values
Yearly Class 4 tax with no phase-in, exemption or abatement.
| Market value | Assessed | Tax a year |
|---|---|---|
| $1,000,000 | $450,000 | $48,816 |
| $2,500,000 | $1,125,000 | $122,040 |
| $5,000,000 | $2,250,000 | $244,080 |
| $10,000,000 | $4,500,000 | $488,160 |
| $25,000,000 | $11,250,000 | $1,220,400 |
| $50,000,000 | $22,500,000 | $2,440,800 |
| $100,000,000 | $45,000,000 | $4,881,600 |
A real building and a tenant in it
From the city's 2026/27 assessment roll, the same figures the building page shows.
1460 Broadway, still phasing in
The city values it at $126.89 million and assesses $57,100,500, but the bill uses the transitional $43,090,380: about $4,674,444 a year. On the full assessment it would be $6,194,262, $1,519,818 more. Run this example.
A 10,000 square foot tenant there
Against the building's 181,503 square feet of floor area, a 5.51% share: about $257,541 a year in a net lease, and $83,735 more a year once the phase-in finishes. Run this example.
A lease measures the share with its own numbers, usually rentable square feet, which can differ from the city's floor area. A base year set while the phase-in is under way means the increases still to come land on the tenant.
How a five-year phase-in plays out
An assessment that rises from $10 million to $15 million and then holds, with the rate unchanged.
| Year | Transitional value | Tax |
|---|---|---|
| 1 | $11,000,000 | $1,193,280 |
| 2 | $12,000,000 | $1,301,760 |
| 3 | $13,000,000 | $1,410,240 |
| 4 | $14,000,000 | $1,518,720 |
| 5 | $15,000,000 | $1,627,200 |
In practice several transitions run at once, one for each of the last five years' changes, so the value rarely moves in clean steps. A drop below the transitional value counts right away, because the bill uses the lower of the two.
Questions
How is commercial property tax calculated in NYC?
The Department of Finance sets a market value, assesses Class 4 property at 45% of it, phases changes in over five years and bills the lower of the actual and the transitional assessed value. Exemptions come off that value, the Class 4 rate of 10.848% applies to the rest and abatements come off the tax. With no phase-in or exemption, a building the city values at $10,000,000 pays about $488,160 a year, 4.88% of its market value.
What is the NYC commercial property tax rate?
Commercial and industrial property is Class 4. Its rate is 10.848% of taxable assessed value for tax year 2025/26, the latest the Department of Finance lists (10.762% the year before). Because Class 4 is assessed at 45% of market value, that is about 4.88% of market value a year before any phase-in, exemption or abatement.
Why is my taxable value lower than 45% of market value?
Changes in a Class 4 assessment phase in over five years, 20% of each change a year, and the law requires the lower of the actual and the transitional assessed value. After a rise in value, the bill uses the transitional value until the increase has phased in. At 1460 Broadway, for example, the 2026/27 roll assesses $57,100,500 but taxes $43,090,380, so about $1,519,818 a year is still to come at today's value and rate. Physical changes, such as an addition or a new building, count in full right away.
How much of the property tax does a commercial tenant pay?
It depends on the lease. In a net lease the tenant pays its proportionate share of the building's tax, usually its rentable square feet over the building's. In a gross lease with a tax escalation clause, the base year's tax is inside the rent and the tenant pays its share of any increase over that year. A 10,000 square foot tenant at 1460 Broadway would carry about $257,541 a year of this year's estimated tax in a net lease.
When is NYC commercial property tax due?
The tax year runs from July 1 to June 30. Properties assessed at more than $250,000 pay twice a year, on July 1 and January 1; those at $250,000 or less pay quarterly, on July 1, October 1, January 1 and April 1. Paying the whole year by the July due date earns a 0.5% discount, and late payments are charged interest from the due date.
How do I appeal a commercial property assessment?
File with the New York City Tax Commission, which must receive a Class 4 application by March 1. It can lower an assessment but cannot change the tax rate. A Request for Review with the Department of Finance, due April 1 for Class 4, can fix a wrong description or reconsider the value. Owners who must file the yearly income and expense statement (RPIE) and missed the year before cannot have their assessment reviewed by the Tax Commission.