The Invisible Engine 2026

How much does real estate contribute to New York City’s tax revenue?

Real estate is New York City’s primary economic engine, contributing $39.6 billion in tax revenue in FY 2025. According to REBNY’s 2026 Invisible Engine report, real estate related taxes (RERT) account for 49.4% of all locally collected City tax revenue. This support forms a critical part of the City’s fiscal foundation, helping New York operate, invest, and grow.

The Facts

The 2026 Invisible Engine report outlines the outsized role the real estate industry plays in New York City’s economy and fiscal health:

• RERT generated $39.6 billion in FY 2025, accounting for 49.4% of all locally gathered tax revenue in New York City.

• That $39.6 billion exceeds the projected wages and salaries of New York City’s entire municipal workforce by $3.5 billion.

• Since 2010, RERT has more than doubled (+113%), helping fund a City budget that is projected to reach $124.7 billion in FY 2027.

• Real estate and construction employ 289,600 people — 5.8% of New York City’s 4.8 million workers — even as employment in the sector remains 8.5% below 2019 levels.

What’s Next

As New York competes for talent, businesses, and investment, the health of the real estate sector—the City's Invisible Engine—remains closely tied to the City’s broader economic trajectory. A strong and predictable revenue base supports not only government operations, but also the confidence needed for long-term planning and private-sector investment.

Maintaining an environment that encourages development, job creation, and economic mobility will be critical to sustaining the momentum detailed in the 2026 Invisible Engine report.