Comptroller – Property Tax Cap Remains at 2% For 2025

New York State Comptroller Thomas DiNapoli announced on July 11th that property tax levy growth will remain at 2% for 2025.

This figure affects tax cap calculations in all counties, towns, and fire districts, along with 44 cities and 13 villages. According to data procured by DiNapoli’s office, the 2025 inflation factor was calculated to be 3.30% for local governments that operate on a calendar-based fiscal year. This was above the 2% allowable levy increase, which is indicative of these localities being faced with higher costs.

“Allowable tax levy growth will be limited to 2% for a fourth consecutive year,” DiNapoli stated. “The rate of inflation has decreased since the highs of 2022, but local governments are still facing higher prices for goods and services, moderating sales tax revenue collections, and an end to federal pandemic aid. Local officials should consider these issues as they budget for the coming year.”

The tax cap limits the rise of annual tax levy to less than the inflation rate or 2% with few exceptions. The law also allows municipalities to override the cap, but certain requirements must be met before doing so.