Real Estate Taxes Provide Nearly Half of New York City Locally Generated Revenue

The total represented nearly 50 percent of locally generated tax revenue and exceeded the previous year's figure of $37 billion. Nearly 90 percent of the $39.6 billion came from the Real Property Tax, the city's most stable revenue source. Commercial properties, including multifamily buildings, offices, retail, hotels, and factories, accounted for 77 percent of all property taxes.

The $39.6 billion total exceeded the combined salaries and wages paid to the city's 280,000 employees by $3.5 billion. The revenue supports the city's 2027 budget of $127 billion, which surpasses the combined budgets of eight other major U.S. cities.

A Real Estate Board of New York representative said the organization updates the data annually and hopes policy makers will consider the findings when making decisions that affect the local economy. The report described real estate as the fiscal bedrock of the city's economy and the largest single source of locally generated tax revenue, ahead of personal income, corporate, and sales taxes.