More than $22 of a typical New York City apartment's roughly $118 monthly electric bill goes toward city taxes.
Here's what to know
Consolidated Edison's (Con Ed's) property tax bill for its New York City electricity infrastructure more than doubled between 2015 and 2025, climbing from $1 billion in 2015 to $2.1 billion in 2025, according to a Manhattan Institute analysis.
Customers cover that expense through the delivery portion of their bills at rates approved by the state.
The gross receipts tax applies to Con Ed's property tax expenses, effectively taxing money used to pay another tax. Outside of property taxes, the city imposes a 2.35% tax on Con Ed's gross receipts and a 4.5% sales tax that covers electricity delivery and supply, according to the Manhattan Institute.
For a single-family home using 600 kilowatt-hours, those taxes amounted to $46.75 monthly, or $561 annually. The analysis found that a typical apartment using 280 kilowatt-hours monthly paid $22.52 in city taxes on a $117.56 bill in 2025.
More background
Between 2019 and 2025, the typical Con Ed apartment bill rose 48%, while the typical single-family home bill increased 51%, according to the Manhattan Institute's analysis. By comparison, the national average residential electricity rate rose 32% over the same period.
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Much of Con Ed's grid equipment is assessed using replacement costs minus depreciation. A producer price index tracking the manufacture of electric power and specialty transformers rose 75% from 2019 to 2025, increasing both infrastructure expenses and the property values used to calculate taxes.
These costs also complicate New York City's efforts to reduce heat-trapping air pollution 80% below 2005 levels by 2050.
Higher electricity bills raise the operating costs of heat pumps and electric vehicles. That makes it harder for residents and building owners to recover the upfront expense of switching away from fuel-burning equipment.
What's being done?
Con Ed and the state Public Service Commission reached an agreement in late 2025 requiring the utility to show customers how much of their bills covers municipal property taxes starting in early 2027, according to the analysis.
The Manhattan Institute recommended making that disclosure requirement permanent and extending it to all public utilities with state-regulated rates. The organization also proposed exempting utility equipment on certain properties from city property taxes while continuing to tax the underlying land.
Under the proposal, lawmakers would require utilities to pass property-tax savings along to customers. The state could also authorize a higher electricity delivery sales tax to partially replace the city's lost revenue.
Any overhaul, however, would face significant budget pressure. The analysis identified a projected fiscal 2028 budget shortfall of $6 billion for the city.
Frederick J. Hunziker Jr., Con Ed's general tax counsel, warned in 1982, in a passage quoted in the analysis, "On the surface, such enormous utility tax increases permit the city to claim stability of those residential real estate taxes paid directly by voters or their landlords.
"In reality, residential property taxes and residential utility bills are paid from the same checkbook. But when large property tax increases are hidden in bills for 'energy,' and when gross receipts and sales taxes are superimposed on 'utility' real estate taxes, the residential property owner pays a tax-on-a-tax-on-a-tax."
Where can I learn more?
City taxes are just one factor driving up New Yorkers' utility bills.
• A New York senator wants utilities to itemize state energy charges on customer bills.
• A New York panel links higher power bills to line trips, net metering, and backup costs.
• New York expanded its 6% energy bill guideline to 2.5 million middle-income families.
• Upstate New York's winter electric bills may rise up to $39 as gas bills decline.
• New York customers face another heating season under temporary NYSEG rates amid bill spikes.
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