A payment plan is an agreement between you and the Department of Finance to pay the amount you owe over time instead of paying the full amount all at once.
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 5-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. But you cannot enter into a payment plan with the Department of Finance if your property has been placed into a tax lien sale or an in rem action has taken place. If your property is at risk for a lien sale or in rem action, you can still enter into a payment plan.
Sidewalk Repair Charges – If the charge is between $250 and $5,000 and the property is a 1-6 family home or has an Assessed Value of $30,000 or less, you can enter into a payment plan. For sidewalk repair charges, you can request a payment plan as soon as you receive your bill, and must apply within one year of the charge.
Payment Plan Options
The Department of Finance offers payment agreements with:
- Down payments for as little as $0 – 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.
- For property taxes and most other charges:
- Monthly or quarterly installments are available.
- Terms of up to 10 years.
- For sidewalk repair charges, the only option is a 4-year term with annual installments.
The Payment Agreement Estimator
can help you estimate the amount you will pay for each installment. Enter different agreement lengths and down payment amounts and the Payment Agreement Estimator will show the approximate payment amounts.
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:
Annual Interest Rate
Assessed Value of Property
|7% (as of July 1, 2018)
||Less than $250,000
||Greater than $250,000
- For sidewalk-repair charges, the annual interest rate is 8.5%
Payment Plan Rules
Once you have entered into a payment agreement, you must pay both your installment amount and 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 is then eligible for all collection actions, including 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 a new payment agreement under extenuating circumstances (see definition below).
- You 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.
Extenuating circumstances are limited to the following four categories:
- The death of someone who signed the payment agreement, of any person named on the property deed, or of a contributing household member;
- A loss of income to the person who signed the payment agreement, to any person named on the property deed, or to a contributing household member due to an involuntary absence from the property for a consecutive period of six months or more for treatment of an illness, for military service, or under court order;
- A loss of income to the person who signed the payment agreement, to any person named on the property deed, or to a contributing household member due to unemployment for any consecutive period of six months or more;
- You are enrolled in the NYC Department of Environmental Protection’s Water Debt Assistance Program.
Property Tax Payment Agreement Application for Extenuating Circumstances Form
Requesting a Payment Agreement
An owner or an owner's authorized agent may submit a Property Tax Payment Agreement Request
or a Sidewalk Repair Payment Plan Request
in any Finance Business Center.
To complete the application process, you must provide:
- Proof of identity (i.e., copy of a driver’s license or non-driver ID), and
- Proof of relationship to the property (i.e., copy of most recent recorded deed or Power of Attorney from owner of record or corporation papers).
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.
For more information about payment plans, call the Department of Finance’s Ombudsman Lien Sale Information Line at 212-440-5408 or visit a Finance Business Center
For more information about payment plans to pay off your outstanding water and sewer debt, please call NYC DEP at 718-595-7000, visit a NYC DEP Borough Office or go to http://www.nyc.gov/html/dep/html/customer_services/lienfaq.shml