Calculating the Taxable Value

A property’s annual property tax bill is calculated by multiplying the taxable value with the tax rate.
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Step 1: Estimate the property’s market value. Finance determines the market value differently depending on they type of property you own.
Read more about how Finance determines your market value.

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 Units or Less

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.

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 Exemptions and Abatements 

Example for a Class One Property, worth $450,000, with a SCHE exemption: 

Related Links
Calculating Your Annual Property Taxes
Condominium/Cooperative Comparables
Estimating Market Value
Rolling Sales Update
Valuation/Assessment