NYC Co-op and Condo Property Tax Abatement Explained

The NYC co-op and condo abatement reduces the property tax on an apartment by 17.5% to 28.1% when it is the owner's primary residence and the owner holds no more than three units in the building. You don't apply yourself: the board or managing agent files with the NYC Department of Finance (DOF) each year, and the percentage depends on the building's average assessed value per unit.

Eligible co-op and condo developments are tax class 2 property. The abatement is one of the main reasons two similar apartments in the same building can pay different tax: one owner lives there, the other rents it out.

How big is the abatement?

The percentage is set by the average assessed value of the residential units in the development, not your own unit. Lower-assessed buildings get a larger cut:

These rates have been the same since fiscal year 2015 under state law (RPTL §467-a). The percentage applies to the net real property tax on each eligible unit.

Worked example

Suppose your unit's share of the building's property tax is $9,000 a year (an illustrative figure) and the building's average unit assessed value is above $60,000.

• Abatement: 17.5% × $9,000 = $1,575 a year, about $131 a month.
• In a lower-assessed building at 28.1%, the same $9,000 would earn $2,529.
• An investor-owned unit next door with the same tax gets nothing.

Estimate your own figure with the co-op/condo abatement estimator.

Who qualifies

The building

• Must be a tax class 2 co-op or condo development.
• Can't be receiving J-51 or the 420-c, 421-a, 421-b or 421-g benefits, unless that benefit expires on June 30 of the tax year being applied for. (A new building moves onto the abatement as its 421-a benefit ends.)
• Not eligible: HDFC co-ops, limited-dividend housing companies, redevelopment companies, Mitchell-Lama, DAMP and UDAAP properties.

The unit and owner

• The apartment must be the owner's primary residence.
• The owner can't own more than three residential units in the development.
• Condo owners must have a deed or transfer tax form recorded in ACRIS.
• Units held by the sponsor (or its successors) or by a business such as an LLC don't qualify, with limited exceptions for some LLC and LP owners.
• Trust-owned units qualify only if they are the primary residence of the trustee, all beneficiaries, or the life estate holder.
• Owners receiving the clergy exemption can't also get the abatement.

The prevailing wage rule

Since fiscal year 2022 only "qualified" properties get the abatement. Higher-value buildings must file an affidavit promising to pay building service workers the prevailing wage. DOF requires the affidavit when:

• the development has 30 or more units and an average assessed value above $60,000, or
• it has fewer than 30 units and an average assessed value above $100,000.

The deadline is February 15. If a required affidavit isn't filed, the whole building loses the abatement for that year, and DOF says there is no exception process. This is a good question for a board when you are doing co-op due diligence.

How the board files

1. 1

   Initial application

   Needed only if the development has never had the abatement or previously opted out. Filed by the board or an authorized managing agent.
2. 2

   Annual renewal

   Filed every year through DOF’s SmartFile system between October 5 and February 15 (next business day if Feb 15 is a weekend or holiday), listing which units are eligible.
3. 3

   Residency proof

   Owners may be asked for a New York driver’s license or NYC voter registration; managing agents can also attest to residency.
4. 4

   December savings letter

   Each December DOF sends boards and agents a letter showing each unit’s savings. Boards must report changes in ownership or eligibility.

How it shows up on your bills

Condo owners get their own property tax bill, so the abatement reduces the tax on that bill. Co-op shareholders don't get a tax bill; the building does. The abatement lowers the building's bill, and the co-op passes it to eligible shareholders, typically as a credit against maintenance. Your year-end maintenance statement usually shows the tax portion and any abatement credit, which matters for the co-op maintenance tax deduction. Ask your managing agent how your building passes it through. For background, see co-op maintenance vs condo common charges.

Is the abatement going away?

The abatement is temporary: the state law sets it year by year, and the legislature has to extend it. When we checked in October 2026, the text of RPTL §467-a on the New York State Senate site covered fiscal years beginning in calendar years 2012 through 2026. That means it is authorized for the tax year that began July 1, 2026 (FY 2026/27).

1. 1996

   Earliest year in the statute

   RPTL §467-a filing rules start with the fiscal year commencing in 1996.

2. FY 2015

   Current rates

   Tiers reach 28.1% / 25.2% / 22.5% / 17.5%, unchanged since.

3. FY 2022

   Qualified properties only

   Prevailing wage affidavit required for higher-value buildings.

4. FY 2026/27

   Last year in current statute

   A further extension is needed for the tax year starting July 1, 2027.

This guide is general information, not tax advice. For specific questions, DOF has a co-op/condo abatement contact form, or call 311. See all homeowner breaks in the NYC property tax breaks finder.