The tax cap, which first applied to local governments and school districts in 2012, limits annual tax levy increases to the lesser of the rate of inflation or 2% with certain exceptions, including a provision that allows school districts to override the cap with 60% voter approval of their budget. DiNapoli’s office calculated the inflation factor at 8% for those with a June 30, 2024 fiscal year end.

“School and local communities are still navigating the post-pandemic needs of their students and residents while dealing with high rates of inflation and employee turnover,” DiNapoli said. “School district and municipal officials must exercise fiscal prudence to stay under the cap amid these challenges as they prepare their budgets.”

The 2% allowable levy growth affects the tax cap calculations for 676 school districts and 10 cities with fiscal years starting July 1, 2023, including the “Big Four” cities of Buffalo, Rochester, Syracuse and Yonkers.

List of allowable tax levy growth factors for all local governments
Property Tax Cap: Inflation and Allowable Levy Growth Factors

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