NYC Taxes: What You Need to Know About Property and Income Taxes in New York City

When you own property in NYC taxes, the combined system of property, income, and commercial taxes imposed by New York City and state authorities. Also known as New York City tax obligations, these taxes affect everyone from first-time homeowners to commercial landlords and remote workers living in the city. Unlike other places, NYC doesn’t just charge one tax—it layers them. You might pay property tax on your apartment, income tax on your salary, and additional commercial taxes if you run a business from home. It’s not just about how much you earn or own—it’s about where you live and how you use your space.

For homeowners, property tax New York City, the annual tax based on your home’s assessed value, collected by the NYC Department of Finance can feel steep. A small apartment in Brooklyn might cost $3,000 a year in taxes, while a similar unit in Queens could be under $2,000. The difference? Location, building class, and exemptions. Seniors and disabled residents can apply for reductions, but most people don’t know they qualify. And if you’re renting? Your landlord pays the property tax—but they factor it into your rent. That’s why rent in Manhattan often feels higher than it should. For commercial owners, commercial property taxes, the tax on office spaces, retail units, and industrial buildings based on income potential and location are even more complex. A storefront in Midtown can pay ten times more than one in the Bronx, even if they’re the same size. Then there’s income tax NYC, the city’s additional tax on top of state income tax, ranging from 3.078% to 3.876% for residents. If you work in NYC but live elsewhere, you still pay it. If you work remotely for a NYC company but live in New Jersey? You might still owe it.

There’s no one-size-fits-all answer to NYC taxes. What matters is knowing what applies to you. Whether you’re buying a studio in Harlem, renting a loft in Williamsburg, or managing a small office building in Long Island City, understanding these layers helps you plan better. You’ll find real examples below—from how a 2BHK apartment owner in Queens handles tax bills, to what happens when a landlord in Brooklyn sells a rental property and the new owner gets hit with back taxes. These aren’t theory pieces. They’re real stories from people who’ve been there, figured it out, and saved money because they knew what to look for.