The growth in property tax levies for many New York local governments will once again be capped at 2% in 2027, despite inflation running higher, according to figures released Wednesday by State Comptroller Thomas DiNapoli.
The cap applies to local governments that operate on a calendar-year fiscal cycle, including all counties, towns, and fire districts, as well as 44 cities and 13 villages across the state.
DiNapoli’s office calculated the 2027 inflation factor at 3.13%, but under New York’s property tax cap law, the allowable increase is limited to the lesser of the inflation rate or 2%, unless a municipality votes to override the cap.
“For the sixth consecutive year, the allowable tax levy growth will be limited to 2%,” DiNapoli said in a statement. “Local governments are tasked with the difficult challenge of delivering essential services efficiently while managing higher costs of goods and services, as well as the persistent threat of destabilizing federal actions.”
He added that the Comptroller’s Office continues to provide technical assistance to local governments while promoting transparency about the fiscal challenges they face.
New York’s property tax cap law took effect in 2012 and applies to nearly all local governments outside New York City, as well as school districts. While the law generally limits annual tax levy growth, municipalities may exceed the cap if they adopt a tax cap override as allowed under state law.
