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What kinds of property taxes are there in New York City?

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Quick Answer

The different types of property-related taxes in New York City include the Mortgage Recording Tax, the Real Property Transfer Tax and the property taxes for class 1, 2, 3 and 4 properties, according to the New York City Department of Finance. The Mortgage Recording Tax is only applied when a homeowner records a mortgage in New York City, and the Property Transfer Tax applies for sales, grants, assignments, transfers or surrenders of property.

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Full Answer

The Property Transfer Tax also applies when a corporation transfers 50 percent of ownership to another entity, or when a transfer of housing stock shares occurs within a partnership, trust or other business that owns or leases property in New York City, notes the New York City Department of Finance.

A class 1 property in New York City generally encompasses residential homes, including three-unit family homes, small stores and offices with less than two apartments attached, and condominiums that are less than three stories, states the Department of Finance. New York City considers all other primary residential property that does not fall into class 1, a class 2 property. There are three class 2 subclasses: class 2a, which encompasses four- to six-unit rental buildings; class 2b, which includes seven-to 10-unit rental buildings; and class 2c, which includes two to 10 cooperative buildings or condominiums. A class 2 is any building used primarily as residential property with 11 or more units.

Class 3 properties generally encompasses utility properties, according to the Department of Finance. New York City typically classifies commercial and industrial properties, such as factory buildings and offices, as class 4 properties.

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