New York (Manhattan) County, NY — Property Tax Underwriting Guide
New York · Cyclical hold until revaluation
What this means for multifamily underwriting
NYC is the most favorable tax regime for multifamily acquisitions: taxes are stable, sale-insensitive, and grow slowly under the statutory cap. The real risk is income-side — improvements that raise rents lift the income-cap-derived assessed value over time. Underwrite conservatively vs. the seller's bill and stress-test at your projected NOI.
Transaction type breakdown
NYC does not reassess on sale. Class 2 (4+ unit multifamily) value is set annually via income capitalization, not the purchase price. A sale at a premium above the current assessed value does not reset taxes; assessed value grows only within the statutory caps (8%/yr or 30%/5yr) regardless of what was paid.
Refinance has no effect on NYC Class 2 assessed value.
Entity-level transfers and ownership changes do not trigger reassessment. Post-renovation rent growth and new leases are eventually reflected as the income model updates, but not immediately in the year of sale.
Tax appeal information
Effective rate placeholder of 1.5% reflects typical Class 2 outcomes; actual NYC FY2024 Class 2 rate is ~12.267% of AV (nominally 45% of market but commonly far lower due to growth caps). Verify the subject property's AV and prior-year bill at nyc.gov/finance.
Guide review
County guidance last reviewed: June 15, 2026
Tax-rate scope: County-level underwriting placeholder; not a parcel-specific tax rate.
Official sources: NYC Dept of Finance, Tax Commission (appeals)
Income-cap model and growth caps are firm; 1.5% effective rate is a market-level placeholder — subject property AV and actual bill govern. Confirm at nyc.gov/finance.
Parclio estimates are underwriting guidance, not legal or tax advice. Always verify millage rates, the seller's assessed value, and appeal deadlines with the county assessor or local counsel before relying on these numbers for a credit decision.
Run a tax reset estimate for New York (Manhattan) County
Use Parclio's estimator to model the post-closing tax bill, NOI impact, DSCR change, and underwriting memo language for your next New York (Manhattan) County deal.