New York City property owners face higher tax bills for the fiscal year beginning July 1, 2026, after the Department of Finance released preliminary assessment rolls showing rising valuations across multiple property types.

Assessed values for one-to-three family homes increased by an average of 4.7 percent, with Staten Island posting the largest rise at 5.1 percent, while co-ops, condos, and rental buildings saw a 6.2 percent increase based on Department of Finance data. Brooklyn recorded the sharpest jump for co-ops and apartments at 11.1 percent, and commercial properties rose 5.8 percent citywide, with the figures covering the period through June 30, 2027 and reflecting market value growth rather than higher tax rates.

The increases arrive as Mayor Zohran Mamdani promotes a rent-freeze policy for regulated apartments, intensifying concerns among landlords and homeowners. Property owners argue that higher taxes combined with frozen rents squeeze already narrow margins, raising fears of cost shifting, deferred maintenance, and long-term strain on building upkeep.

Tax Hikes Clash with Rent-Freeze Goals

As the numbers roll in, the burden of these assessments translates to real dollars for owners, with some facing thousands in added taxes, as detailed by the New York Post. Humberto Lopes, CEO of HL Dynasty and Gotham Housing Alliance, put it plainly: “You can’t say you want to freeze the rent and then raise my property taxes.” His frustration echoes a broader sentiment that balancing affordability for tenants shouldn’t mean squeezing owners dry.

Lopes offered a stark example, noting a 20-story rent-regulated building in Bay Ridge where taxes could leap from $78,000 to $91,000. He also pointed to his three-family homes in Red Hook, projecting a tax jump from $35,151 to around $38,000. That kind of math forces tough choices on where to cut corners or raise rents elsewhere.

Then there’s the ripple effect on market-rate tenants and small homeowners, who could see costs passed down as landlords scramble to cover gaps. If rent freezes lock in revenue on one end while taxes spike on the other, something’s got to give. It’s a classic case of good intentions paving a rocky road for those caught in the middle.

Policy Pushback from Frustrated Owners

Mamdani’s administration has tried to cool the heat, insisting no tax rate hikes have occurred since the Bloomberg era. Spokesperson Dore Pekec clarified, “This annual preliminary report is simply an assessment of property values.” Yet, that’s cold comfort when valuations drive bills upward, and owners still feel the squeeze regardless of technicalities.

The mayor’s campaign rhetoric about shifting tax burdens to wealthier neighborhoods hasn’t landed well with many property owners. While aiming to ease the load on outer borough homeowners, the idea of recalibrating taxes based on neighborhood demographics raises eyebrows. It sounds noble, but risks looking like a punitive jab at success.

Meanwhile, small property owners have taken legal action, pointing to the 2019 Rent Stabilization Law as a financial straitjacket. Brothers Pashko and Tony Lulgjuraj, in a lawsuit, claimed a vacant unit capped at $700 rent would bleed money for years if leased. That’s not a business model, it’s a slow-motion loss.

Hidden Costs in Rising Assessments

A spokesperson for Homeowners for an Affordable New York cut through the noise: “Rising assessments are an invisible rent hike for every tenant in New York.” That’s the unspoken truth, as higher taxes on owners rarely stay contained, they trickle down to renters or erode property upkeep. Affordability gets preached, but the bill still lands somewhere.

Look at the broader picture, with over 26,000 “zombie units” sitting vacant in the regulated stock, per 2024 Census Bureau data. These empty apartments, off the market due to unworkable rent caps, represent lost housing in a city desperate for it. Policies meant to protect tenants can end up shrinking their options.

The Department of Finance offers some relief, like abatement programs for seniors, veterans, and others, plus payment plans to ease the sting. Property owners can also challenge assessments with the city Tax Commission by early March deadlines. But these are bandages on a deeper wound of clashing priorities.

Can Policies Balance or Break?

Mamdani’s vision of affordability through rent freezes and tax reform isn’t without merit for struggling tenants. Yet, when property taxes climb in tandem, it’s hard to see this as anything but a half-baked plan that shifts burdens rather than lightens them. Owners aren’t charities, they’re businesses facing real costs.

The mayor’s push to rethink how co-ops and condos are taxed might smooth some edges if it ever passes state law. But for now, it’s just talk while assessment notices hit mailboxes and force immediate decisions. Property owners deserve a clearer path, not a policy tug-of-war.

Ultimately, New York City’s housing crisis won’t be solved by pitting tenants against owners or taxing one group to spare another. Both sides need breathing room, and that starts with policies that add up on a balance sheet, not just a campaign flyer. Until then, these soaring assessments will keep tempers, and bills, running high.