By CaraLynn Caulfield
New York’s property tax levy cap will remain at 2% for 2026, State Comptroller Thomas P. DiNapoli announced on July 14. That does not take into account inflation.
The limit applies to counties, towns, fire districts, and dozens of cities and villages that follow a budget that runs from January 1 to December 31. When factoring in inflation, DiNapoli’s office calculated next year’s tax cap for 2.64%, but state law sets the cap at either the lesser rate of inflation or 2%, with certain exceptions. This also marks the lowest rate for calendar-year budgets since 2022, when it was 2.30%.
This marks the fifth consecutive year the cap has hit the 2% ceiling, even as inflation exceeded that threshold in every one of those years. In 2023, when inflation was considered, the cap was at 7.17%, but since then, the cap decreased; it was 6.26% in 2024 and 3.30% in 2025.
“The challenge for local governments will be maintaining essential local services within this cap, while still dealing with higher prices for commodities and services, ” DiNapoli said in a statement.
The tax cap law, enacted in 2012, allows municipalities to override the cap with a 60% vote, though few choose to do so.
The new property tax cap for municipalities and special districts whose budgets run from March 1 to February 28 will be released in September.
— Additional reporting by Hank Russell