Want to Maximize Your Tax Benefits? Understand the CooP Condo Tax Abatement

If you're a new homebuyer in New York City, you may have heard about the Coop Condo Tax Abatement—a valuable tax break that can help lower your property taxes. But what is it, how does it work, and how can you take advantage of it?

In this guide, we’ll break down everything you need to know about this program, who qualifies, and how you can ensure you’re receiving the maximum benefit.

What is the property tax abatement for condos in NYC?

The Cooperative and Condominium Tax Abatement is a property tax reduction offered by the NYC Department of Finance (DOF) for eligible condo and co-op owners. This abatement applies dollar credits to reduce the total property tax bill.

Since property taxes in NYC can be a significant cost, this abatement can be a game-changer for many homeowners—especially first-time buyers looking to save money.

How does a tax abatement work?

A property tax abatement is basically a discount on your property taxes — kind of like getting a promo code when you're shopping, except it's offered by the city or state. Instead of paying the full amount you'd normally owe, an abatement reduces your bill, sometimes for several years depending on the program. It’s one of those hidden perks that can make owning a home more affordable, especially in a place like NYC where every bit helps.

Who Qualifies for the Tax Abatement?

To be eligible for the coop condo tax abatement, both the property and the homeowner must meet specific requirements:

✔ The unit must be your primary residence – This means you must live in the co-op or condo as your main home, not as an investment property or a second home.

✔ You must own the unit – You cannot apply if you rent the unit, even if you have a long-term lease.

✔ You must not own more than three residential units in the same development – This prevents landlords and investors from benefiting.

✔ The unit cannot be owned by a business entity – If the unit is owned by an LLC, corporation, or trust (unless the trust's beneficiaries are all primary residents), it won’t qualify.

✔ You must not be receiving certain other tax benefits – The unit cannot be receiving a different type of tax abatement from the city.

✔ Condos must be properly recorded with NYC’s Division of Land Records – This means a real property transfer tax form or deed must be filed at the time of purchase.

If you meet all these criteria, your unit may be eligible for the tax abatement!

How Much Can You Save?

The amount of the coop condo tax abatement is based on the average assessed value of the residential units in your co-op or condo development. Typically a residential unit will fall in the assessed value bracket that will save owners 17.5% on their tax bill.

What does abatement mean in coop?

If you’re in a coop your property taxes are rolled into your maintenance fees. You’ll still experience the tax savings from the coop condo tax abatement - it just might be slightly more difficult to figure out exactly how much you’re saving. Reach out to your management company to figure this out.

How to Apply for the Co-op and Condo Tax Abatement

Unlike other tax exemptions, individual unit owners cannot apply for the coop condo tax abatement on their own. Instead, your co-op board or condo management company must apply for the entire development.

Here’s what you need to do:

1️⃣ Confirm Your Primary Residence
Tell your co-op board or condo management that you live in the unit as your primary residence so they can include your unit in the application.

2️⃣ Ensure Your Development Applies
If your development is not currently receiving the abatement, encourage your board or managing agent to check eligibility and apply.

3️⃣ Check Your Annual Tax Bill
The NYC Department of Finance website to see your tax bill. These bills indicate whether your unit has received the abatement.

4️⃣ Follow Up With Management
If your unit isn’t receiving the abatement and you think it should be, follow up with your management company. Sometimes, developments forget to renew their application—which must be done every year by February 15.

What Happens If Your Development Didn’t Apply or Lost the Abatement?

If your development failed to submit the required documentation, they may have lost the abatement for the current tax year. Your development can reapply as a new applicant for the next tax year.

Don’t Leave Money On the Table

It’s always best to talk to an expert when you can. Regardless of what stage you’re at in your journey, my buyer’s guide is built to empower you with all the information you need to feel confident in your next home purchase.

If you’re buying a property in NYC and want to know how to maximize your savings, this document will help you navigate NYC’s complex real estate transactions with ease. The best part - it’s free! Download it today.