New York City property taxes arrive four times a year for most homeowners — and the consequences of missing a payment escalate quickly. A single missed quarter starts a clock of compounding daily interest. Go long enough without paying, and the City can sell your debt to a private lienholder who can eventually move to foreclose.
The good news: the system is more forgiving in the early stages than most people realize. There are grace periods, payment plans, reduced-interest options, and even a deferral program for income-qualified homeowners. This guide walks through every deadline, every interest rate, and every exit ramp — all based on current NYC Department of Finance rules effective through June 30, 2026.
How NYC Property Taxes Are Billed: Quarterly vs. Semi-Annual
New York City’s fiscal year runs from July 1 through June 30. The Department of Finance (DOF) divides all properties into two billing tracks based on assessed value:
Assessed value of $250,000 or less: Bills are mailed quarterly — four times per year. Payment due dates are July 1, October 1, January 1, and April 1.
Assessed value over $250,000: Bills are mailed semi-annually — twice per year. Payment due dates are July 1 and January 1.
If a payment due date falls on a weekend or federal holiday, your payment is due the next business day. The Department mails bills approximately one month before each due date. If your mortgage lender escrows your taxes, they receive the bill directly — but you remain ultimately responsible if it goes unpaid.
You can view your current bill and account balance at any time at nyc.gov/nycproperty. You do not need to wait for a mailed bill — and the DOF notes that it is your responsibility to pay on time even if you never receive a bill in the mail.
The Grace Period: Your 15-Day Interest-Free Window
If your property is assessed at $250,000 or less and you pay quarterly, you get an important buffer called the grace period: you can pay up to 15 days after the due date with no interest charged.
Practically, that means:
- July 1 due date → pay by July 15 with no interest
- October 1 due date → pay by October 15 with no interest
- January 1 due date → pay by January 15 with no interest
- April 1 due date → pay by April 15 with no interest
If the last day of the grace period falls on a weekend or federal holiday, the deadline moves to the next business day.
Pay on day 16 and interest accrues from the original due date — not from when the grace period ended. If you pay your July quarter on July 20, the interest clock started July 1.
Semi-annual payers (assessed over $250,000) do not get a grace period in the same sense; their bills are due on the date stated.
Early-Payment Discounts: A Little-Known Perk
The City actually rewards homeowners who prepay multiple quarters at once. If you pay the full year’s property tax portion by the July grace-period deadline, you receive a 0.50% discount on your entire annual bill. Pay through the end of the year by October 15, and you get a 0.33% discount on the last three quarters. Pay the second half by January 15, and you receive a 0.17% discount.
These discounts apply to the “property tax portion” of the “Everything You Owe” amount on your bill — not to water/sewer charges or other line items. For a homeowner with a $6,000 annual property tax bill, the 0.50% discount is $30 — modest, but free money for paying on time.
Semi-annual payers who pay the full year’s tax amount by July 1 also qualify for the 0.50% discount.
What Happens When You Miss the Grace Period: Interest Rates
Miss the grace period and interest starts compounding daily. The annual interest rate depends on your property’s assessed value — not its market value:
| Assessed Value | Annual Interest Rate | Effective Period |
|---|---|---|
| $250,000 or less | 6% | July 1, 2025 – June 30, 2026 |
| $250,001 – $450,000 | 9% | July 1, 2025 – June 30, 2026 |
| Over $450,000 | 16% | July 1, 2025 – June 30, 2026 |
These rates are set annually by local law. For tax class 2 properties of more than 10 units and all tax class 4 properties, interest is charged based on the property’s actual assessed value — the value before the five-year phase-in of any assessment changes. You can find your property’s actual assessed value at nyc.gov/nycproperty.
The interest compounds daily, meaning the longer you wait, the faster the balance grows. A $3,000 overdue quarterly bill at 9% annual interest accumulates roughly $22 in interest per month early on — but the compounding effect accelerates as the unpaid balance grows with accrued charges.
Agency contact: NYC Department of Finance, (718) 715-1500 (311 also routes to DOF). For online inquiries: nyc.gov/finance/contact.
Can’t Pay the Full Amount? Payment Plans Available
If you have an outstanding balance, you can enter a DOF payment plan before a lien sale occurs. There are three options under NYC Admin Code Title 11:
Option 1: Standard Payment Plan
Available to most property owners. No mandatory down payment (though DOF recommends paying something upfront to lower your installments). You pay monthly or quarterly for up to 10 years. Interest continues to accrue at the same rate as above during the plan period. To apply: submit online at nyc.gov or download the Standard Payment Agreement application (PDF).
Use the Payment Agreement Estimator at nyc.gov to model what your monthly installments would look like before committing.
Option 2: PT AID Deferral Plan
The Property Tax and Interest Deferral (PT AID) Program is for income-qualified homeowners who need more relief than a standard payment plan provides. Eligible participants can defer all or part of their property taxes, or pay only a small percentage based on their income. Details are on the PT AID page at nyc.gov.
Option 3: Reduced Interest Rate Plan
If your property is a single-family home, condo, or other tax class 1 property with an assessed value of $250,000 or less, and it is your primary residence (for at least one year), and all owners’ combined income does not exceed $200,000 — you may qualify for a 2.5% annual interest rate instead of the standard 6%. That is a meaningful reduction.
You automatically receive this rate if you are enrolled in PT AID or are on a standard payment plan and receive Enhanced STAR, SCHE, or DHE. Otherwise, apply online or download the initial application PDF.
Warning: Once you enter any payment plan, you must pay both your installment amount and all new charges as they come due. Miss both for six months and your plan is automatically in default. A defaulted plan means the property becomes immediately eligible for collection actions — and you are locked out of entering another payment agreement for five years (unless you can make a 20% down payment on all outstanding charges, interest, and fees, and that option is available only once during the five-year period).
The Lien Sale: What It Is and How to Stay Off the List
If property tax debt goes unpaid long enough and crosses minimum thresholds, the City can include it in a lien sale. In a lien sale, the City sells your debt — not your property — to an authorized third-party buyer. That buyer then has the right to collect what you owe, plus interest and fees.
The 2025 lien sale was held on June 3, 2025. Lien sales typically occur annually.
Minimum thresholds to be eligible for a lien sale:
For owner-occupied 1-family homes: at least $5,000 in property tax debt that has been overdue for at least 3 years.
For 2–3 family owner-occupied homes: at least $5,000 in property tax debt, 3 years overdue. Water/sewer debt threshold: $3,000, 1 year overdue.
For residential condominiums and co-op buildings: $5,000 in property tax, 3 years overdue; $1,000 in water/sewer, 1 year overdue.
For all other commercial and mixed-use properties: $1,000, 1 year overdue.
A property that qualifies for any one of the four charge types (property tax, water/sewer, AEP, or ERP debt) may be included in the sale.
What happens after a lien is sold:
Within 90 days of the lien sale, the City mails property owners the name and contact information of the new lienholder. You then owe the lienholder — not the City — for the sold balance. Additional charges kick in immediately:
- A 5% surcharge on the entire lien amount
- Post-sale interest: 5% per annum (compounded daily) for properties assessed at $250,000 or less; 18% per annum (compounded daily) for properties assessed over $250,000
- Estimated ~$300 in administrative costs for advertisements and notices
Foreclosure can begin within one year of the lien sale date if you have not paid in full or entered a payment agreement with the lienholder. It can begin sooner if semi-annual interest payments to the lienholder are missed or if current City taxes remain unpaid for six months.
Key protections:
Military personnel: Active-duty service members can request exclusion from the lien sale by filing a Military Request for Relief form (PDF).
5% surcharge waiver: Low-to-moderate income primary-residence owners (combined income of all owners/spouses residing at property ≤ $110,750, no other NYC properties) can request a waiver of the 5% surcharge by submitting the Lien Sale 5% Surcharge Waiver Request (PDF).
Payment plan before foreclosure: You can enter a payment agreement with the lienholder to stop foreclosure proceedings — but not after a foreclosure action has been completed.
Questions about a lien sale? Call 311 and ask for the Department of Finance Lien Sale unit, or submit a message at nyc.gov/finance/contact-lien-sale.
How to Pay: Your Options
The NYC Department of Finance offers several ways to pay your property tax bill:
- Online: Pay by ACH (free) or credit/debit card (fee applies) at nyc.gov/finance/pay.
- By mail: Mail a check or money order with the coupon from your bill to the address printed on the coupon. If you do not have the coupon, write your property’s borough-block-lot (BBL) number on the front of your check. The payment date is your postmark date.
- Payment notifications: Sign up for account alerts at nyc.gov to receive email or text confirmation when payments are credited to your account.
- Monthly installments: The DOF offers a voluntary monthly payment plan that lets quarterly payers spread each quarterly amount across three smaller monthly payments — separate from the formal payment plan program for delinquent accounts. See the Monthly Property Tax Payments page.
Key Deadlines at a Glance (FY2026 through June 30, 2026)
| Quarter | Due Date | Grace Period End (≤$250K assessed) |
|---|---|---|
| Q1 (Jul–Sep) | July 1 | July 15 |
| Q2 (Oct–Dec) | October 1 | October 15 |
| Q3 (Jan–Mar) | January 1 | January 15 |
| Q4 (Apr–Jun) | April 1 | April 15 |
Semi-annual payers (assessed over $250,000): due July 1 and January 1 — no grace period.
The Bottom Line: Act Before the Clock Runs
The NYC property tax system gives homeowners meaningful protection in the early stages: a 15-day grace period, modest early-payment discounts, multiple payment plan tiers, and a deferral option for those with financial hardship. What it does not do is pause the compounding interest clock once you miss the grace period, or stop lien eligibility once minimums are crossed.
If you have an overdue balance, the single most important step is to contact the DOF before your debt reaches lien sale eligibility — not after. Once a lien is sold, the cost structure changes significantly and the path to resolution involves a private lienholder rather than City government.
DOF phone: (718) 715-1500 (or dial 311).
Online inquiries: nyc.gov/site/finance/about/contact-us-by-email.page
Payment plans: nyc.gov/site/finance/property/property-payment-plans.page
View your bill and account: nyc.gov/nycproperty
Tax information in this article is informational. Consult a tax professional or the NYC Department of Finance for your specific situation.
