With the huge victory of Zohran Mamdani in the New York Mayoral contest this week, attention has been drawn to his tax policies in regards to getting those with broader shoulders to taking up more of the burden. His only real means would be raises in property taxes, which is worth discussing when compared to London. 

In New York City, annual property taxes are generally higher than in London, where homeowners pay relatively low annual Council Tax. Now New York City’s property tax system uses effective tax rates that are generally around 0.88% of the market value for residential properties (Tax Class 1: 1- to 3-family homes). However, the actual rates can vary by borough:

Brooklyn (Kings County): ~0.68%
Manhattan (New York County): ~0.98%
Queens (Queens County): ~0.87%
Staten Island (Richmond County): ~0.92%
Bronx (Bronx County): ~1.23%

Taxes are calculated based on an assessed value, which for Class 1 properties is fixed at 6% of the market value, subject to state law limits on how much it can increase annually (capped at 6% per year or 20% over five years). This system often results in a lower effective tax rate compared to the actual market value, and can be regressive, with lower-valued homes sometimes having a higher effective rate than high-valued ones.

London’s annual property tax, known as Council Tax, is significantly lower than typical US property taxes. The amount depends on the property’s valuation band, set by the local borough (e.g., City of London, Westminster, Camden). Average annual bills are generally within the range of £780 to over £1,500 per year. For example:

Westminster: ~£781 per year
City of London: ~£1,374 per year
Islington: ~£1,520 per year

So in comparison, we have two quite different property tax regime, on either side of the pond. In New York, the calculation basis of the assessed value (6% of market value for residential homes), is multiplied by a tax rate Property valuation band set by local borough. Typical this means in New York, the annual cost are significantly higher, with an average effective rate of ~0.88% of market value (e.g., a home valued at $500,000 might have an annual bill around $4,400) Whilst in London, we have significantly lower annual bills, typically ranging from £780 to £1,500+ per year regardless of current market value.  So the key difference is the higher ongoing annual costs. Much higher initial purchase taxes (Stamp Duty Land Tax – SDLT), but lower annual costs.

Overall, while London imposes much higher transaction taxes (Stamp Duty Land Tax) when a property is purchased, the annual property tax (Council Tax) is considerably less than the annual property tax burden in New York City