Tax day special: NYC apartments offering monthly savings through tax abatements

By CityRealty Staff | From Get To Know Monday, April 15, 2024

1 Grand Army Plaza, unit 16S has a tax abatement until 2035 (Compass)

While the sticker shock of New York City apartments is well known, one lesser-known aspect is condo and co-op owners’ monthly carrying costs, which can sometimes be higher than their mortgage payments. However, New York City has several programs in place that can temporarily reduce real estate taxes, paid separately by condo owners and bundled into maintenance fees for co-op owners. Those who take advantage can save thousands of dollars a year in property taxes.

One overarching program for apartment owners is the New York City Cooperative and Condominium Tax Abatement, where managing agents or boards apply on behalf of the entire development and individual unit owners are required to meet certain eligibility requirements, namely that they use the apartment as their primary residence. Those that do qualify can receive a property tax reduction ranging from 17.5% to 28.1% a year (abatement based on assessed value of the units).

It is important to note that a building is not eligible if it already benefits from a J-51 exemption, 420c, 421a, 421b, 421g, or any tax abatement program acquired by the sponsor, owner, or developer and passed on to the units within the building. The most well-known is the 421a tax exemption program, which was started in 1971 to encourage the development of underutilized or vacant property by dramatically reducing property taxes for a set amount of time. Developers who qualified could benefit from exemptions that usually lasted between 10 and 25 years, and the tax breaks were passed on to buyers of units within the building.

Schaefer Landin in Williamsburg opened in 2006 and has a 421a tax abatement until 2032 (Douglas Elliman)

While 421a officially came to an end in January 2016, a revised version of the plan dubbed Affordable New York was released in January 2017. It offered tax incentives to buildings that reserved at least 20 percent of their units for affordable housing. Affordable New York expired in June 2022, and a replacement has not yet been announced, but its effects may still be seen in a handful of new buildings where the tax abatements remain in effect.

The 421-g Tax Incentive program was a real estate tax exemption and abatement for the conversion of commercial buildings, or portions of buildings, into multiple dwellings. It applied to areas of Lower Manhattan south of Murray Street, City Hall, and the Brooklyn Bridge. It was in effect at a time when many Financial District office buildings were being converted to offices; at a time when Midtown office conversions are being discussed, more information about the history of the exemption may be found here.

35 Woodhull Street #3 benefits from J-51 tax abatement (Compass)

The J-51 property tax exemption program is granted to residential buildings (typically rent regulated) to encourage and subsidize renovations. According to the city’s website, a J-51 property tax exemption effectively freezes a building’s assessed value in its pre-renovated state. Thus the owner or shareholders do not have to pay the increase in property taxes caused by the increase in assessed value from the rehabilitation work. See the length and value of J-51 tax benefits here.

Select active listings with running tax abatements

Riverwalk Place, #5P
$569,000 (-9%)

Roosevelt Island | Condominium | Studio, 1 Bath | 501 ft²

Riverwalk Place, #5P (Corcoran Group)

From the Listing: Extra Large Alcove Studio located in Riverwalk Place Condominium. This sunny and bright studio home has a generous floor plan that features a nicely defined living room and dining space. The sleeping alcove will fit a queen size bed and can be easily separated from the living space. A modern kitchen has an open layout and is nicely appointed with granite countertops and stainless steel appliances. No Taxes Until 2025 due to Special Abatement! See floor plan and full details here.

501 Myrtle Avenue, #4B
$638,000

Clinton Hill | Condominium | 1 Bedroom, 1 Bath | 448 ft²

501 Myrtle Avenue, #4B (Serhant LLC)

From the Listing: Designed to maximize space, fresh air, and natural light each home offers residents a contemporary indoor/outdoor lifestyle in the heart of charming Clinton Hill. Solid oak hardwood floors run throughout, and floor-to-ceiling double pane Schuco windows with closed cell foam insulation ensure that the homes are bright, warm, and quiet. Two-zone heating and cooling from LG allows for precision temperature control in each room. See floor plan and full details here.

Hero LIC, #2G
$729,000

Long Island City | Condominium | Studio, 1 Bath | 488 ft²

Hero LIC, #2G (Compass)

From the Listing: Welcome home to Unit 2G, an efficient residence graced with sleek finishes and a layout that maximizes space and natural light. This stunning studio, 1-bathroom home strikes the perfect balance between tastefulness and comfort. A private storage unit is available at an additional fee. A 421A tax abatement in place. All showings are by appointment only with 24 hour notice. See floor plan and full details here.

70-26 Queens Boulevard, #5A
$750,000

Woodside | Condominium | 2 Bedrooms, 2 Baths | 1,043 ft²

70-26 Queens Boulevard, #5A (Modern Spaces)

From the Listing: 15-year tax abatement in place. Very low monthlies. This spacious unit has one of the best layouts in the building. Just under 1,100 sq ft, it’s a true 2-bedroom home, with private outdoor space. It has a large living room that is directly connected to the open chef’s kitchen, a king-size primary bedroom, and an equally large 2nd bedroom. Generous amount of living space and plenty of natural light all day. This unit benefits from southern and northern exposure. See floor plan and full details here.

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Allura, #PHN603
$764,000

College Point | Condominium | 1 Bedroom, 1 Bath | 757 ft²

Allura, #PHN603 (Compass)

From the Listing: Introducing N603: A stunning spacious penthouse 1-bedroom, 1-bathroom oasis bathed in sunlight, boasting south-facing exposure at Allura. True to its name, this residence is designed to captivate, offering panoramic views of the waters and parts of Queens from its oversized private balcony, approximately 118 SQFT. Allura is one of the few buildings in Queens that still has the 421-A tax abatement, buyers can benefit from low taxes for the next 13 years. See floor plan and full details here.

Sofo Tower, #3D
$780,000

Astoria/LIC | Condominium | 1 Bedroom, 1 Bath | 764 ft²

Sofo Tower, #3D (Corcoran Group)

From the Listing: Located in the heart of the culturally rich, close-knit community of Astoria, Queens.SoFo Tower was designed by Angelo Ng & Anthony Ng, Architects Studio. This 7-story building is composed of 26 artfully crafted residences and a visually striking facade. Surrounding you is the serenity of a tree-lined street, close proximity to three parks, the big-river beauty of a waterfront promenade, the endless energy of arts and entertainment, restaurants and lounges, blocks of convenient shopping, and easy subway, bus and water ferry commutes to virtually anywhere in New York. See floor plan and full details here.

5th on the Park, #19D
$859,000

East Harlem | Condominium | 1 Bedroom | 768 ft²

5th on the Park, #19D (Compass)

From the Listing: Welcome to 1485 5th Ave, Unit 19D! Situated adjacent to Marcus Garvey Park, this stunning 1-bedroom, 768-square-foot condo offers the epitome of urban elegance in a high-rise, full-service building. See floor plan and full details here.

The Rennie, #614
$945,000

Harlem | Condominium | 2 Bedrooms, 2 Baths | 903 ft²

The Rennie, #614 (Brown Harris Stevens Development Marketing LLC)

From the Listing: ASK ABOUT OUR INTEREST RATE BUY DOWN OPTIONS Settle into the Harlem Beat with this bright, chic 2 bedroom home facing a quiet, landscaped courtyard. Gorgeous picturesque windows with lovely sills frame views of a Historical Neo-Gothic limestone church, elevating the ambiance inside your home. Gray oak floors are featured throughout, complementing the natural light that fills the spacious home See floor plan and full details here.

Avalon Brooklyn Bay, #24B
$995,000

Sheepshead Bay | Condominium | 2 Bedrooms, 2 Baths | 1,093 ft²

Avalon Brooklyn Bay, #24B (Serhant LLC)

From the Listing: Introducing Unit 24B: A refined two-bedroom, two-bathroom sun-drenched residence in the luxurious 1 Brooklyn Bay Condominium. Enjoy southern and western exposures with a private balcony showcasing captivating views of the Atlantic Ocean and New York Harbor. Elevated living awaits with ten-foot ceilings and expansive floor-to-ceiling windows framing breathtaking vistas. Imported cabinetry and honed quartz countertops adorn the kitchen, which is equipped with stainless steel Sub-Zero and Viking appliances See floor plan and full details here.

Atlantic Terrace, #8B
$1,195,000

Fort Greene | Condop | 2 Bedrooms, 2 Baths | 950 ft²

Atlantic Terrace, #8B (Compass)

From the Listing: Overlooking South Oxford Park, with sweeping views of the Manhattan skyline beyond, this corner 2BR/2BA is an oasis of luminous tranquility in a beloved neighborhood. Perched high above the surrounding homes, but still close enough to touch the treeline, a unique angled layout draws in all-day light from northeastern exposures, and creates a feeling of cozy embrace without sacrificing size. The building, LEED-certified and amenitized, is tax-abated until 2036. See floor plan and full details here.

The Lenox, #4B
$1,250,000

Harlem | Condominium | 2 Bedrooms, 2 Baths | 1,434 ft²

The Lenox, #4B (Compass)

From the Listing: Spacious and bright, Residence 4B at The Lenox offers a beautifully renovated split-bedroom layout with two bedrooms, two bathrooms and a home office. The Lenox, a full-service new construction condominium, is situated in the heart of the vibrant and historic Central Harlem neighborhood. With extremely low monthlies and a generous layout of 1,434 SF, this is a must-see. The Lenox’s 421-A tax abatement, which expires in 2033, creates a unique opportunity for home ownership and investment in the heart of Harlem. See floor plan and full details here.

The Duet Condominium, #1A
$1,325,000 (-10.2%)

Gowanus | Condominium | 2 Bedrooms, 3 Baths | 1,465 ft²

The Duet Condominium, #1A (Compass)

From the Listing: Not your Cookie Cutter Condo, this 1465 Square Foot apartment feels more like a townhouse! Each floor is dedicated to Living/ Dining, Sleeping or Flex/Recreation, allowing for a refreshing separation of space. Oversized wall-to-wall windows on the entry and upper floors fill the rooms with natural light while connecting with the outdoors and richly stained Brazilian Cherry wood floors add warmth and texture. Pet Friendly, No Smokers Please, Tax Abatement Through 2026! See floor plan and full details here.

Tiffany Tower, #2S
$1,650,000

Cobble Hill | Condominium | 2 Bedrooms, 2 Baths | 1,188 ft²

Tiffany Tower, #2S (Compass)

From the Listing: Welcome to your new home, where luxury and convenience converge at 20 Tiffany Place. Nestled on a serene street in Cobble Hill West, this spacious condo, Apartment 2S, is a haven of comfort and style. With two bathrooms, two bedrooms, and a versatile home office that effortlessly transforms into a third bedroom, this residence offers the perfect blend of flexibility and functionality.Best of all, this unit has a 421A tax abatement, which ensure incredibly low taxes through 2032. See floor plan and full details here.

Third + Bond, #1
$2,300,000 (-4.2%)

Gowanus | Condominium | 3 Bedrooms, 3 Baths | 2,229 ft²

Third + Bond, #1 (Compass)

From the Listing: Looking for townhouse living with the ease of a condominium? The duplex Maisonette at 115 3rd St is the answer! This LEED Platinum green intelligently designed residence seamlessly blends luxury with functionality in Carroll Gardens.Part of the coveted THIRD and BOND Development, this legal 2 bed/3 bath unit with flexible options for a third or even fourth sleeping area also features a massive flex room. Spanning over 2200 square feet, this condo provides the space you crave with the feel of a townhouse. See floor plan and full details here.

35 Woodhull Street, #3
$2,350,000

Carroll Gardens | Condominium | 4 Bedrooms, 3 Baths | 1,688 ft²

35 Woodhull Street, #3 (Compass)

From the Listing: Relax it's here - the one you have been waiting for! Live amongst the treetops in this loft-like, renovated Brownstone Duplex Penthouse with three terraces and a roof deck. Currently configured as a three-bedroom, three-bathroom plus family great room, this thoughtful and flexible layout can easily be used as a four-bedroom apartment. The space is bright and airy with soaring 10-foot ceilings, oversized windows flooding copious southern light, natural wide-plank walnut hardwood floors throughout, and just refinished before coming to market! J-51 tax abatement runs through 2028. Call today for an appointment! See floor plan and full details here.

One Manhattan Square, #54D
$2,550,000

Lower East Side | Condominium | 2 Bedrooms, 2 Baths | 1,164 ft²

One Manhattan Square, #54D (EXP Realty NYC)

From the Listing: This residence features 12’ CEILINGS (rare find in the building) and corner 180° river/city and Manhattan Bridge.

ONE MANHATTAN SQUARE OFFERS ONE OF THE LAST 20-YEAR TAX ABATEMENTS AVAILABLE IN NEW YORK CITY, $24/ monthly in taxes. Mortgage interest rate buy-down available.100,000 square feet of indoor and outdoor amenities! See floor plan and full details here.

Circa Central Park, #2A
$2,825,000

Harlem | Condominium | 3 Bedrooms, 3 Baths | 1,596 ft²

Circa Central Park, #2A (Reuveni LLC)

From the Listing: This exclusive apartment offers immediate occupancy and an exceptional 25-year 421-A tax abatement, making it a rare opportunity you won't want to miss. Measuring approximately 1,596 square feet, this three-bedroom, three-bathroom residence is bathed in sunlight courtesy of its exquisite corner exposure and curved glass windows that overlook Frederick Douglass Circle with views of iconic Central Park. See floor plan and full details here.

Schaefer Landing North, #4B
$2,995,000

Williamsburg | Condominium | 3 Bedrooms, 2 Baths | 1,460 ft²

Schaefer Landing North, #4B (Douglas Elliman Real Estate)

From the Listing: Welcome home to the serenity and elegance of the Williamsburg waterfront. Meticulously renovated and appointed, this turn-key, triple-mint, and inviting home features uplifting views of the East River and Manhattan Island - a truly splendid backdrop to the home's jewel box interiors. There is 421a Tax abatement until 2032 with current monthly taxes around $7.00.A rare turn key offering, See floor plan and full details here.

70 Charlton, #4D
$3,250,000

SoHo | Condominium | 2 Bedrooms, 3 Baths | 1,631 ft²

70 Charlton, #4D (Brown Harris Stevens Residential Sales LLC)

From the Listing: A stunning, xxx mint condition sprawling 2-bedroom 3-bathroom home, flawlessly reconfigured from its original 3-bedrooms to provide entertaining space at scale. An ideal full-time home or lavishly appointed pied-a-terre, Residence 4D at 70 Charlton Street is a glorious downtown oasis at the crossroads of Soho, Tribeca and the West Village where residents enjoy top-tier service and extravagant suite of amenities, all expertly crafted and managed by Extell and wrapped in the sleek design elegance of award-winning architects Beyer Blinder Belle. There is a 20-year tax abatement which includes RE taxes that are abated until 2036. See floor plan and full details here.

400 Park Avenue South, #27C
$5,500,000

Flatiron/Union Square | Condominium | 3 Bedrooms, 3 Baths | 2,819 ft²

400 Park Avenue South, #27C (Corcoran Group)

From the Listing: Unit 27C delivers on this praise and shows its strength with over 2800 square feet of expansive living space. As you make your way throughout this luxurious residence, you'll find three extra-large bedrooms, three full bathrooms, and a home that has been kept in remarkable condition since its original purchase. Developed by Toll Brothers, this building has received LEED certification and a 10-year 421a tax abatement. See floor plan and full details here.

On Prospect Park, #16S
$9,950,000

Prospect Heights | Condominium | 4 Bedrooms, 3.5 Baths | 3,500 ft²

On Prospect Park, #16S (Compass)

From the Listing: Here is a home you never dreamed existed in brownstone Brooklyn - a true penthouse designed by Richard Meier with 3500 interior SF wrapped in 2500 SF of magnificent roof terraces and balconies. Meier’s signature glass walls and oversized layouts are on full display here, and have been newly augmented by the owner’s complete renovation of the kitchen and baths. The result is unparalleled luxury overlooking Prospect Park.

Spectacular views from the Atlantic Ocean to the south, around to the Empire State Building, are fully protected by landmarked Prospect Park and brownstone neighborhoods, all from the vantage point of the 16th floor. *Tax abatement until 2035 (current taxes $44/month) See floor plan and full details here.

Would you like to tour any of these properties?

This is your member's center

In this article:

Select active listings with running tax abatements

Riverwalk Place, #5P
$569,000 (-9%)

501 Myrtle Avenue, #4B
$638,000

Hero LIC, #2G
$729,000

70-26 Queens Boulevard, #5A
$750,000

Select which properties are of interest to you:

Allura, #PHN603
$764,000

Sofo Tower, #3D
$780,000

5th on the Park, #19D
$859,000

The Rennie, #614
$945,000

Avalon Brooklyn Bay, #24B
$995,000

Atlantic Terrace, #8B
$1,195,000

The Lenox, #4B
$1,250,000

The Duet Condominium, #1A
$1,325,000 (-10.2%)

Tiffany Tower, #2S
$1,650,000

Third + Bond, #1
$2,300,000 (-4.2%)

35 Woodhull Street, #3
$2,350,000

One Manhattan Square, #54D
$2,550,000

Circa Central Park, #2A
$2,825,000

Schaefer Landing North, #4B
$2,995,000

70 Charlton, #4D
$3,250,000

400 Park Avenue South, #27C
$5,500,000

On Prospect Park, #16S
$9,950,000

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