NYC Affordability

What it is

The Cooperative and Condominium Property Tax Abatement, authorized by New York’s Real Property Tax Law § 467-a, reduces the property taxes on eligible co-op and condo units in New York City. The state’s assessor manual describes it as a reduction in the taxes actually levied, not in your assessed value, and notes it applies to general city and school taxes but not to special assessments. It was originally enacted in 1996.

The key thing for buyers: individual owners don’t apply. According to the NYC Department of Finance, the condo board of managers or co-op board of directors (or its managing agent) applies on behalf of the whole development and has to renew every year. The filing deadline is February 15 (or the next business day if it falls on a weekend or holiday).

Who qualifies

There are two layers of eligibility. The development must be a tax class 2 property and can’t be an HDFC, Mitchell-Lama, limited-dividend, or redevelopment company property, among others. It also generally can’t be receiving J-51 or certain 420-c, 421-a, 421-b, or 421-g benefits, unless those are due to expire on June 30 of the year it applies. If your condo has a 421-a or 485-x story, check how the benefits interact before you count on both.

Each unit then qualifies if, per DOF:

• It’s the owner’s primary residence.
• The owner doesn’t own more than three residential units in the development.
• The owner isn’t receiving the clergy exemption.
• The unit isn’t owned by a business such as an LLC, or held by the sponsor (with limited security-related exceptions for LLCs and limited partnerships).
• For condos, the owner has filed a deed or real property transfer tax form with the city’s land records, which is usually done at closing.
• A trust-owned unit must be the primary residence of the trustee, all beneficiaries, or the life estate holder.

Timing matters. You must have bought on or before January 5 to qualify for the tax year starting the following July 1. Close on January 6 and you’re waiting a year.

How much it’s worth

The percentage depends on the average assessed value of the residential units in your development, not your unit’s market value. DOF’s schedule:

Average assessed value per unit	Abatement
$50,000 or less	28.1%
$50,001 – $55,000	25.2%
$55,001 – $60,000	22.5%
$60,001 and above	17.5%

For a co-op, DOF figures the average by multiplying the property’s total assessed value by the residential percentage (based on shares) and dividing by the number of residential units. Assessed value is a fraction of market value, so plenty of expensive buildings land in the lower brackets and plenty of ordinary Manhattan buildings land in the 17.5% one.

There’s a catch for bigger-ticket buildings: a development with 30 or more units and an average assessed value over $60,000, or fewer than 30 units and an average over $100,000, has to file a prevailing wage affidavit for its building service workers. If it’s required and isn’t filed, DOF says the entire development loses the abatement for that year, with no exception process.

How it shows up: condo vs co-op

Condo owners get their own property tax bill, so the abatement is applied right there, as a credit on that bill. If your lender pays taxes from escrow, the bill may go to the bank; you can look it up on DOF’s site by address and unit number.

Co-op shareholders never see a city tax bill, because the corporation owns the building and gets one bill for the whole thing. The building receives the abatement and, under the state rules, must pass the savings to the eligible shareholders; the assessor manual says each board member can face a penalty of up to $10,000 for failing to. Exactly how that happens is up to the board. Habitat Magazine and Hauseit both report that many co-op boards levy an assessment equal to the abatement, so the money stays in the building’s budget and the shareholder sees no net cash relief, while keeping the headline maintenance number lower. If you’re buying a co-op, ask the managing agent how the building handles it. See co-op maintenance explained for what else is inside that monthly bill.

One more buyer tip from Hauseit: listing figures for taxes or maintenance usually reflect what’s charged after abatements. If you won’t be a primary resident, your number may be higher.

Is it still around?

Yes, through the current tax year. The abatement has always been temporary and periodically extended. In June 2023 the legislature passed a four-year extension that, per the state’s assessor manual, authorizes it for fiscal years beginning through 2026 at the same rates, which covers the city’s 2026–27 tax year (July 1, 2026 to June 30, 2027). DOF’s current application forms are for tax year 2026–27. We couldn’t confirm a further extension beyond that as of this guide’s update date, so check DOF’s page before assuming the abatement for 2027–28 and later.

Worked example

All figures are hypothetical and calculated.

Condo. Your unit’s annual property tax before the abatement is $10,000, and your building’s average assessed value per unit is $58,000, which falls in the 22.5% bracket.

• Abatement: $10,000 × 22.5% = $2,250 a year
• Tax after abatement: $10,000 − $2,250 = $7,750 a year, or about $646 a month
• Monthly savings: $2,250 ÷ 12 = $187.50

If you rent the unit out instead of living there, it stops being your primary residence, and that $187.50 a month comes back on the bill.

Co-op. Your apartment’s share of the building’s property tax is $6,000 a year, and the building’s average assessed value is $75,000, so it’s in the 17.5% bracket.

• Your share of the abatement: $6,000 × 17.5% = $1,050 a year, or $87.50 a month

Whether that $87.50 actually lowers your monthly outlay depends on the board: if it bills an offsetting assessment of the same amount, your net change is zero.

To see what a few hundred dollars a month of property tax does to your buying power, run it through the Condo Calculator or Co-op Calculator. For how property tax stacks up against the other costs of owning, see co-op vs condo costs. This is general information, not tax advice.