Feb 15, 2025
New York City’s property tax system has long been under scrutiny for its inequities, and a recent court battle is bringing those issues to light once again. The nonprofit group Tax Equity Now New York (TENNY) is pushing back against what they call a discriminatory tax assessment formula—one that disproportionately affects lower-income, minority communities while giving tax breaks to wealthier neighborhoods.
TENNY’s latest motion, filed on January 23, argues that the city’s proposed 2025/2026 property assessments still overvalue homes in areas like Jamaica, Queens, and the South Bronx while undervaluing properties in affluent neighborhoods such as Park Slope, Brooklyn, and parts of Manhattan.
The result? Higher tax burdens for homeowners in low-income areas and tax advantages for those in wealthier districts.
Despite a court ruling last March that deemed NYC’s property tax assessments unlawful, the city has yet to implement the necessary reforms. TENNY is now urging the court to act before February 20—the deadline for notifying property owners about their new assessments—to prevent another year of unfair taxation.
For homebuyers and investors, these tax disparities create a significant challenge. Those looking to purchase in lower-income neighborhoods may face disproportionately high property taxes, impacting affordability and profitability.
Meanwhile, investors in high-end areas continue to benefit from favorable tax rates, further widening the wealth gap in the city's real estate market.
Martha Stark, TENNY’s policy director, argues that this inequitable system worsens NYC’s affordability crisis. "Despite the City’s expressed desire to make the city more affordable for hardworking homeowners and renters, they are ignoring their ability to do just that in the area where they have the most control: the property tax," she said.
While the Adams administration insists it is working toward a legislative solution, City Hall also warns that rapid changes to the tax system could disrupt city services funded by property taxes.
The legal battle continues, and homeowners, renters, and investors alike should keep an eye on the court’s decision, which could have a lasting impact on NYC’s real estate landscape.
For those considering buying property in NYC, understanding these tax policies is crucial. A shift in the assessment system could reshape investment strategies, neighborhood growth patterns, and long-term affordability across the city.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
