On Jan. 15, the NYC Department of Finance (DOF) announced the publication of the tentative property assessment roll for fiscal year (FY) 2026. The total market value of all New York City properties has reached approximately $1.579 trillion, a notable 5.7 percent increase compared to FY 2025. According to the DOF, the citywide taxable billable assessed value, which is the portion of the market value subject to tax rates, increased by 3.9 percent, reaching $311.2 billion.

The property values for FY26 reflect real estate activity from Jan. 6, 2024, to Jan. 5, 2025, the taxable status date, as well as income and expense information on commercial properties during calendar year 2023 and submitted to DOF in 2024. Property owners can access their tentative assessments through the DOF’s Property Information Portal at https://propertyinformationportal.nyc.gov.

At this time, the DOF sends each owner a Notice of Property Value (NOPV) estimating their expected tax bill. The release of the tentative assessment roll marks the start of a period during which owners can review and challenge their assessments before the final roll is released in May. The finalized values, combined with tax rates and any applicable exemptions or abatements, will determine property taxes for the fiscal year beginning July 1, 2025.

Values for Class 2 Properties

The total market value for Class 2 properties, which include cooperatives, condominiums, and rental apartment buildings, registered $396.6 billion, an increase of $27.1 billion, or 7.3 percent, from Fiscal Year 2025. The total assessed value increased by 4.8 percent, to $120.7 billion. Brooklyn experienced the largest market value percent increase for Class 2, at 9.4 percent, and the largest taxable billable assessed value percent increase at 10.7 percent.

Class 2 rentals saw a market value increase of 9.9 percent. The total assessed value increased by 6.4 percent for Class 2 rental apartments. Brooklyn had the largest market value increase at 15.3 percent and the largest taxable billable assessed value increase at 16 percent for rental apartments.

Values for Class 4 Properties

The total market value for Class 4 commercial properties increased by 3.8 percent citywide, to $339.5 billion. Brooklyn had the largest percent increase in market value at 6.3 percent. The total assessed valued for this class of properties increased by 2.9 percent, to $135.9 billion. Assessed values for citywide retail buildings saw a 1.1 percent increase. And Brooklyn had the largest increase in assessed value at 3.2 percent for retail buildings.

Permitted Valuation Approach

State law requires the DOF to value all Class 2 properties as if they produce income. To determine a building’s market value, the DOF uses statistical modeling to calculate the typical income and expenses for properties similar in size, location, age, and number of units. The process varies depending upon whether a property has more or fewer than 10 units.

Most rental building owners are legally required to file an annual Real Property Income and Expense (RPIE) statement. To determine a rental property’s market value, DOF uses income and expense information to estimate its current net income, adjusting the data based on statistical models and assessment guidelines. The capitalization rate is then applied to the estimated net income to calculate the property’s market value.

Smaller Class 2 buildings with 10 units or fewer are also valued as income-producing properties. However, since most of these buildings are not legally required to file an RPIE statement, the valuation approach is simplified by using the gross income multiplier method.

Challenging Assessed Values

The NYC real property tax assessment and appeal procedure is calendar-driven. With the release of the tentative assessment roll, property owners have an opportunity to examine and challenge these values before the roll is finalized in May.

Tax commission appeal. Owners who believe that the DOF set their assessed value too high can appeal to the NYC Tax Commission, an independent city agency. The Tax Commission has the authority to change a property’s assessment value and tax class, and to review exemption determinations. You don’t need an attorney to file with the Tax Commission, and you aren’t required to attend an in-person hearing, though you may do so if you wish.

Between March and October, the NYC Tax Commission conducts hearings with property owners who have challenged their Tentative Assessments or their representatives to consider whether an assessment should be reduced. At such hearings, information and documentation supporting a property owner’s appeal may be presented. Hearing Officers typically render decisions within weeks of a hearing.

If the property owner accepts a NYC Tax Commission offer to reduce the assessment, the appeals process is concluded, the reduction is effective as of July 1, and the property owner may apply for a refund of any tax overpayment. If the NYC Tax Commission doesn’t extend an offer to reduce the assessment, or if an owner doesn’t accept the offer and believes that a greater reduction is warranted, the tax appeal for the current year may be continued by filing an Article 7 petition in New York Supreme Court on or before Oct. 24 within the tax year to which the assessment applies.

Appeals must be submitted by the March 3, 2025, deadline for Class 2, 3, and 4 properties. This means that the Tax Commission must receive your appeal by this date, which means mailing your appeal on March 3 isn’t sufficient. To file an appeal, visit the Tax Commission at www.nyc.gov/taxcommission. In the “Forms” tab, select the “General Instructions” link and review form TC 600, “How to Appeal a Tentative Assessment.” Printed forms are available at DOF business centers and at the Tax Commission’s office at 1 Centre Street, Room 2400, New York, NY 10007.

If you have a smaller Class 2 property (10 units or fewer), you must prove that your property’s value is less than its effective market value in order for the Tax Commission to lower your assessment. Your property’s effective market value is its assessed value, before exemptions, divided by 45 percent.

Request to update. If there is a factual error on your NOPV, such as the wrong number of units or square footage, you can report it to the Department of Finance by filing a “request to update” form, available at www.nyc.gov/finance. If you file your Request to Update form between Aug. 31 and mid-April of the following calendar year, and your changes are approved, you can expect to see the changes reflected in the final roll, published in June. DOF will send you a notification of the changes in a letter between January and June. If you file your request to update from mid-April to Aug. 31, and your changes are approved, you can expect to see the changes reflected on the tentative roll that’s published the following January.

Request to review. If you disagree with the estimated market value on your NOPV, you can file a “request to review” form available at www.nyc.gov/finance. You may disagree based on factors such as finances, comparable sales, building use/classification, physical development, or structure features. The deadline to challenge your estimated market value of your Class 2 property is April 1, 2025.

It’s important to note that filing a Request for Review or to Update with the DOF isn’t a substitute for appealing your assessed value with the Tax Commission.