Majority of Suffolk County Towns Propose Budgets that Will Pierce New York State’s 2% Tax Cap for Second Year in a Row

In the upcoming 2026 budget year, a majority of Suffolk County’s ten Towns have made the difficult decision to “pierce” the New York State (“NYS”) mandated 2% tax cap, with increases in tax rates ranging from 2.10% (Islip) to 9% (Smithtown). The NYS tax cap is not a “hard cap,” – State Law permits Towns to exceed the 2% cap limitation by passing a local law or board resolution with a 60% supermajority vote.

Seven of the ten Town Boards will be voting on a resolution to pierce the cap, with the Town of Smithtown doing so for the first time since the tax cap was enacted by the State in 2011. See, Smithtown to bust tax cap with 10.7% levy hike – Newsday.

For the second straight year, the Town of Islip together with all five of Suffolk’s east end towns — Southold, Riverhead, Shelter Island, East Hampton, and Southampton — have proposed budgets that pierce the cap.  Taxpayers in Babylon, Huntington and Brookhaven will experience increases in Town tax levies at or under the 2% threshold. All tax increases will be levied on residential and commercial properties.

Town Supervisors attribute the need for higher tax levies to several factors including inflation, skyrocketing liability insurance premiums and unavoidable increases in employee pension costs and medical insurance premiums. Additionally, the rising costs of materials and the need for critical infrastructure improvements such as road repairs, water quality projects, parkland improvements and public safety upgrades are straining municipal finances. See, 2026-Budget-Message—Tentative-Budget. Not surprisingly, the proposed budget increases have been met with resistance by some taxpayers. See, Smithtown residents protest proposed budget | TBR News Media.

Commercial property owners can only vote as a resident in a respective Town. If a non-resident, commercial property owner opposes a Town’s budgetary practices, the best recourse is to file a property tax appeal with the local assessing body. In Suffolk County, taxpayers may begin filing administrative appeals with their respective Town’s Board of Assessment Review as of May 1, 2026.  Since property tax appeals require legal and real estate valuation expertise, taxpayers should consult with an experienced attorney who specializes in property tax litigation.