Requirement to Pay Property Taxes by Electronic Funds Transfer (EFT)

New York City property owners who pay annual taxes of $300,000 or more must use Electronic Funds Transfer ("EFT").

Who is Required to Pay by EFT?
Who is Not Required to Pay by EFT?
EFT Payment Methods
Waivers
Penalties For Not Filing by EFT If Required
Additional Information
Frequently Asked Questions
Contact Us

Who is Required to Pay by EFT?

You are required by law to pay property tax by Electronic Funds Transfer (EFT) if you are:

• A taxpayer who owns one or more properties with a combined annual property tax amount of $300,000 or more.
• A mortgage escrow agent or bank responsible for paying by EFT if the annual property tax amount for all accounts is a combined total of $300,000 or more.
  If you are required to pay by EFT, any single payment, even if less than $300,000, must be by EFT.

Example:
An owner/agent has two properties.  Property A pays $100,000 annually and Property B pays $400,000. This totals $500,000.

Even if one payment of $100,000 is made specifically for Property A, it must be by EFT.  This would not be required if the owner/agent is only responsible for Property A.  However, if the owner/agent is also responsible for B, any and all payments must be made by EFT.

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Who is Not Required to Pay by EFT?
Property owners and business entities paying less than $300,000 in annual property tax for all property combined are not required to pay by EFT (although they may do so if they wish).

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EFT Payment Methods
Taxpayers paying property tax by EFT must select one of two electronic payment methods:

• Manual  - Taxpayers make their own payments by EFT, including Fedwire and ACH Credit. (See NYCeFile for instructions on Fedwire payments.)
• Automatic - Taxpayers give Finance the right to go to their bank accounts and automatically take the amounts due.

Important Note for Fedwire and ACH Credit Users
Ensure your Fedwire and ACH Credit payments are correct! Finance must receive electronic instructions to accurately credit NYCeFile accounts because there may be more than one period due, or you may wish to pay future taxes.
Pay Online via NYCeFile

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Waivers
A taxpayer who can not enroll in either of the EFT programs, or make promised payments by EFT due to a hardship has an option. They must request an exception to the EFT requirement by completing an Online Waiver Request.

A waiver request form must be submitted at least 30 days prior to the payment due date. The waiver is granted at the discretion of The Commissioner of Finance.  Many factors go into this decision including the nature of the hardship and the length of time requested.
EFT Waiver Request Form

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Penalties For Not Filing by EFT If Required
If you do not file a waiver request, or if your waiver request is denied and you do not make a required EFT payment, Finance can charge a penalty.

Before charging a penalty, Finance will issue a warning. If the next payment is not paid by EFT, Finance will add a penalty of one percent to all unpaid past required EFT amounts.  Interest is charged to both the unpaid taxes and the penalty from then on. Note: The property may be added to future tax lien sales if payment is not made.

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Additional Information

Finance Memorandum 05-2 Mandatory Payment of Real Property Taxes by Electronic Funds Transfer
Download Memorandum (33k)

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Frequently Asked Questions
See also NYCeFile for information on the technical use of EFT payment methods

How do I know that I am required to pay by EFT?
What is considered "Timely EFT payment?"
What if the Transaction does not go through?
If there is a question, how can I prove payment was made by the deadline?

How do I know that I am required to pay by EFT?
The Department of Finance makes every effort to notify property taxpayers who are required to pay by EFT. However, whether or not you receive notification, if you meet the criteria referenced above in
Who Is Required to Pay by EFT?, you must pay in this way.

What is considered "Timely EFT payment?"
A Manual Taxpayer Payment must be started on or before the last due date of the tax period being paid.  The taxpayer’s bank account must have enough money to pay the entered amount.

For Automatic Debit, Finance must be authorized to debit the tax amount by the last date of the tax period being paid. The bank account must be accurately identified and have enough money to complete the transaction.

What if the Transaction does not go through?
If the money in the bank account is not enough to pay the amount due, or the account is not properly identified (for automatic debit) interest will added. This interest will be applied from the due date of the unpaid amount and continue until satisfied. There will also be a charge of $20.00 for each Insufficient Funds transaction.

If there is a question, how can I prove payment was made by the deadline?
For Manual EFT payments, the record produced at the end of a successful transaction can be printed and sent to us. This will serve as proof of timely payment.

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