Payment plans

The standard payment plan is the best option for most taxpayers.

To apply: Submit the Property Tax Payment Agreement Application and provide all required documentation, including proof of your identity and your relationship to the property. (If you have questions, refer to the Standard Payment Plan Online Filing User Guide.)

Down payment: You do not have to make a down payment, but we recommend that you do. The more you pay up front, the lower your payments will be.

Terms: Pay monthly or quarterly for a term of up to 10 years.

The Payment Agreement Estimator can help you estimate your payment amount.

Your single-family home, condominium, or other tax class one property may be eligible for a Reduced Interest Rate Property Tax Payment Plan. See “Option 3: Reduced Interest Payment Plan” below.

The Property Tax and Interest Deferral (PT AID) Program allows eligible homeowners to defer all or part of their property tax payments, or pay only a small percentage based on their income, so that they can remain in their homes. If you know someone who is struggling to pay their property taxes, please visit the PT AID page for more information.

Eligibility

You may be eligible for a Reduced Interest Rate Property Tax Payment Plan if:

• Your property is a single-family home, condominium, or other tax class one property with an assessed value of $250,000 or less.
• The property has been your primary residence for at least one year.
• The total income of all owners does not exceed $200,000.

How to Apply

You will receive the reduced interest rate automatically and do not need to submit an application if either of the following applies to you:

• You are enrolled in a property tax payment plan through the Property Tax and Interest Deferral (PT AID) Program.
• You are enrolled in a standard payment plan, are up to date on your payments, and receive the Enhanced STAR credit or exemption, the Senior Citizen Homeowner’s Exemption (SCHE), or the Disabled Homeowners’ Exemption (DHE).

If neither of the above applies to you, but you believe you might be eligible, you can apply for the Reduced Interest Rate Property Tax Payment Plan. You will be asked to upload copies of your recent tax return. If you have not filed a recent federal or state tax return, you will be asked to complete this income worksheet.

Once you have entered into a payment plan, you must pay both your installment amount and your new charges. If you fail to pay both for a period of six months:

• Your agreement is in default and may be cancelled.
• The property will be eligible for all collection actions, which may include tax lien sales.
• You will not be able to enter into another payment agreement for that property for the next five years unless you qualify for an Extenuating Circumstances Payment Plan Request or make a 20% down payment on all property-related outstanding charges, interest, and fees. You can only do this once during the five-year period for a property.

Interest Rates

The annual interest rate you will be charged under a payment plan is set by law and depends on the assessed value of your property.

• For property taxes and most other charges:

Payment plans vs. paying your bill all at once

A payment plan allows you to make a series of smaller payments instead of making one large payment, but it increases the total amount you will pay. This is because interest will continue to be added to your balance until the amount you owe is completely paid off. For example, if you owe $10,000 and you choose a five-year payment plan with 9% interest, you will end up paying a total of more than $12,000.

When payment plans can be used

Payment plans can be used for property taxes and many other property charges. If you have missed payments on your property tax bills, and you have an outstanding balance, you can enter into a payment plan. If your property is at risk for a lien sale or in rem action, you can still enter into a payment plan. However, you cannot enter into a payment plan with the Department of Finance if a tax lien sale or an in rem action has taken place.

If your property was already subject to an in rem enforcement action, you must obtain approval from the Department of Housing Preservation and Development for a payment agreement.

Sidewalk Repair Charges

There is a separate sidewalk charges payment plan application. Eligibility information is included in the application. For sidewalk-repair charges, the annual interest rate is 8.5%.

For more information about property tax payment plans, submit an inquiry online.

For more information about payment plans to pay off your outstanding water and sewer debt, please call the Department of Environmental Protection at (718) 595-7000, visit a NYC DEP borough office, or review DEP’s Overdue Water & Sewer Charges page.