New York State Comptroller, Thomas P. DiNapoli, recently announced that the 2026 property tax levy increases will be capped at 2%. The 2% limitation affects local governments including counties, towns, fire districts, 44 cities and 13 villages that have their fiscal year end December 31st.
"Allowable tax levy growth will be limited to 2% for a fifth consecutive year," DiNapoli said in a statement. "The challenge for local governments will be maintaining essential local services within this cap, while still dealing with higher prices for commodities and services and the potential impact of policy choices at the federal level." See: DiNapoli: Tax Cap Remains at 2% for 2026 | Office of the New York State Comptroller
Earlier this year, DiNapoli likewise announced the property tax levy for the State's 675 School Districts and 10 Cities would also be capped at 2%. See: https://www.osc.ny.gov/press/releases/2025/01/dinapoli-school-district-tax-levy-cap-at-two-percent
New York State's property tax cap limits levy growth at either 2% or the rate of inflation, whichever is less. There is an exception to the rule, however, with a provision allowing municipalities and school districts to override the cap by majority vote. For more on school district tax levy's for the 2025/26 academic year: https://www.farrellfritz.com/insights/tax-tracker/annual-property-tax-report-cards-3-64-billion-in-school-district-cash-reserves/
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