The 421-a Tax Break Is Disappearing From New NYC Condos

Condo Book Research · Updated Oct 11, 2026 · 3 min read

For years, a 421-a tax break was one of the best perks of buying a new NYC condo. We tracked the tax programs named in NYC condo offering plans to show how fast it's fading, and what (if anything) is taking its place.

If you've shopped for a new NYC condo, you've probably seen listings brag about a 421-a tax abatement. The program let many new buildings pay little or no property tax on the new construction for years, which meant lower monthly costs and a nice selling point.

That era is ending. Offering plans name the tax program the building is relying on, so we tracked them across NYC condo plans by filing year.

The Short Version

• From 2017 through 2022, about 20 to 37 NYC condo plans a year cited 421-a.
• Since the program closed to new projects in June 2022, that's fallen to 6 to 9 a year.
• Since 2018, about 80% of condos citing 421-a had 35 apartments or fewer, and almost none were in Manhattan.
• ICAP mentions are rising, but ICAP is a break for commercial space. It usually does nothing for your apartment's taxes.

421-a, Year by Year

The handful still citing 421-a are projects that started construction before the June 2022 deadline and are only now coming to market. They have to finish construction by a set deadline to keep the benefit.

Why So Many Small Buildings?

The 2017 version of 421-a, known as Affordable New York, mostly required rental buildings to include affordable units. Condos could qualify without that only under a homeownership option limited to buildings outside Manhattan with 35 apartments or fewer, with a cap on assessed value per apartment. That's why recent 421-a condos cluster at just under the line:

• Fabric Astoria in Astoria: 35 apartments
• Apollo Plaza in Elmhurst: 35 apartments
• Carriage on the Beach in Brighton Beach: 33 apartments
• Golden Garden in Flushing: 33 apartments
• urban32 on Ocean Avenue in Flatbush: 32 apartments

Since 2018, Brooklyn accounts for about 56% of condo plans citing 421-a and Queens about 40%. Manhattan has just a handful.

What About ICAP, J-51 and 485-x?

• ICAP (Industrial and Commercial Abatement Program) shows up in more plans than 421-a since 2022, but it's for commercial space. Many plans say plainly that ICAP applies only to the retail or community facility unit and doesn't lower residential taxes.
• J-51 rewarded renovations and conversions of older buildings. It appears in about 70 condo plans, mostly filed before 2022.
• 485-x, the 2024 replacement for 421-a, is aimed mainly at rental housing. Expect few new condos to carry a tax break like the old 421-a.

What It Means for Buyers

• Expect full property taxes in most new condos. Budget for them in your monthly costs. Our property tax benchmarks show what new condos project.
• If a building does have 421-a, check the phase-out. The benefit shrinks over time, and your taxes rise as it does. The offering plan shows the schedule, often unit by unit in Schedule A.
• Check the status. Some plans say the sponsor has applied for a benefit but hasn't received it. Read the amendments for updates.
• Don't confuse it with the co-op/condo abatement. The city's separate abatement for owner-occupied apartments is a different program, and eligibility rules apply.

Search "condos with a 421-a tax abatement" on The Condo Book Project.

Common Questions

Does 421-a still exist for condos?

Only for projects that started construction before June 15, 2022. A few such condos are still coming to market, but the number of NYC condo plans citing 421-a has dropped by more than two-thirds since 2022.

Why do so many 421-a condos have 35 units?

Under the 2017 rules, condos could get 421-a without affordable units only if they were outside Manhattan and had 35 apartments or fewer, among other limits.

Does ICAP lower my condo's property taxes?

Usually not. ICAP is a commercial abatement, and many condo plans say it covers only the retail or community facility space.

What replaced 421-a?

485-x, passed in 2024, which is designed mainly for rental buildings with affordable units.

Where this comes from: the property tax programs named in NYC condo offering plans, grouped by the year the plan was first filed with the New York Attorney General. Counts include plans that name a program; many plans name none. Updated October 2026. This is general information, not tax advice.