The tax cap, which first applied to local governments (excluding New York City) and school districts in 2012, limits annual tax levy increases to the lesser of the inflation rate or 2% with certain exceptions. The law also includes provisions that allow school districts and municipalities to override the cap. DiNapoli’s office calculated the inflation factor at 2.95% for those with a June 30, 2026, fiscal year-end.

“For the fourth year in a row, the property tax levy for school districts and 10 cities will be capped at 2%,” DiNapoli said. “School district and municipal officials will have to deliver services efficiently as they face the difficult task of managing costs that continue to rise.”

The 2% allowable levy growth affects the tax cap calculations for 675 school districts and 10 cities with fiscal years starting July 1, 2025, including the “Big Four” cities of Buffalo, Rochester, Syracuse and Yonkers, as well as Amsterdam, Auburn, Corning, Long Beach, Watertown, and White Plains.