Does New York cap property tax increases?

New York caps the total tax levy growth at 2% or inflation (whichever is lower), but this doesn't cap individual property tax bills. Your taxes can increase by much more than 2% if your assessment rises.

Why did my NY property taxes increase more than 2%?

The 2% cap applies to total tax revenue, not individual bills. Your taxes can spike if your property value increased more than average, if exemptions expired, or if voter-approved expenditures were added.

How do I appeal property taxes in New York?

File a tax grievance with your local Board of Assessment Review by Grievance Day (typically the third Tuesday in May). NYC and some counties have different deadlines ranging from March 1st to June 1st.

Is NYC property tax different from the rest of New York?

Yes, NYC has its own property tax system with four property classes, different tax rates, and no 2% levy cap. NYC uses a complex class share system that determines tax distribution among property types.

Rob Hartley

Founder, AppealDesk · February 26, 2026

New York property tax levy cap explanation

AppealDesk

How Much Can Property Taxes Increase in New York?

New York has a 2% property tax levy cap that limits how much total tax revenue can increase, but this doesn't cap individual property tax bills. Your personal property taxes can still increase by much more than 2% due to reassessments, shifting tax burdens, and exemptions for certain levy increases.

Quick Answer

Tax levy cap: 2% or inflation (whichever is lower)
Individual assessments: No cap—can increase by any amount
Override provision: 60% vote can exceed the cap
NYC different: Has its own property tax system with class shares

Understanding New York's 2% Cap

New York's property tax cap, enacted in 2011, limits the annual growth of the property tax levy (total taxes collected) to the lesser of 2% or the rate of inflation. This sounds protective, but it's actually a cap on the total tax revenue—not on individual tax bills.

Why Your Taxes Can Still Spike

Even with the 2% cap, your individual property taxes can increase dramatically if your assessment rises faster than the average in your municipality. The cap only limits total revenue—not how that revenue is distributed among properties.

What's Excluded From the Cap

Several major expenses are exempt from New York's 2% cap:

Debt service on bonds approved by voters
Court orders and judgments
Pension contribution increases beyond 2 percentage points
Capital expenditures for emergency repairs

NYC: A Different System

New York City doesn't follow the state's 2% cap. Instead, NYC uses a complex class share system that divides properties into four classes with different tax rates and assessment ratios. Property tax increases in NYC depend on your property class and neighborhood trends.

Grieving Your Assessment

Since New York doesn't cap individual assessment increases, filing a tax grievance (appeal) is often your only defense against rising taxes. The deadline varies by municipality but typically falls between May 1st and July 1st.

Key Deadlines by Region

Most towns: Third Tuesday in May (Grievance Day)
Nassau County: March 1st for residential
NYC: March 1st for Class 1, March 15th for others
Westchester: June 1st in most towns

Why Appeals Matter More in NY

Without individual assessment caps, New York property owners face unlimited increases. A successful grievance can provide the only real protection against skyrocketing assessments.

Is Your NY Property Overassessed?

With no individual caps, New York properties often face steep assessment increases. Check if you're paying more than your fair share.

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Last updated: February 2026. Sources: NY Department of Taxation and Finance, Office of the State Comptroller.