The NYC Condo Tax Breaks Most Owners Don't Know About (Beyond 421-a and 485-x)

Updated Nov 6, 2026 · 5 min read

Short answer: The break most worth knowing about is the co-op/condo abatement, a cut of roughly 17.5% to 28% of the property tax on a home that is its owner's primary residence. Only 19% of the 23,012 homes in the NYC condo plans we matched to the city's tax records received it in tax year 2025–26, typically worth $2,600 a year. The personal exemptions, for seniors, veterans, people with disabilities and clergy, show up on fewer than a hundred of those bills.

How We Counted

We matched 23,012 condo homes in 1,146 offering plans to their tax lots, then looked each one up in the Department of Finance's public abatement and exemption records for tax year 2025–26. Some homes are still owned by the developer or are rented out by investors, and those can't get the owner-occupant breaks. Even so, the gaps are large.

1. The Co-op/Condo Abatement

This is the city's standing discount for apartment owners who live in their homes. It's applied to the tax bill, it renews every year, and it's separate from 421-a and 485-x.

What it's worth: the typical abatement was $2,600 a year, with the middle half of homes between $1,600 and $4,600. That's about 18% off the full tax.
The rate: the city sets it by the building's average assessed value per unit. 89% of the homes receiving it got 17.5%; buildings with lower average values get more, up to 28.1% (7% of homes).
Who gets it: 4,280 homes in 365 plans (32% of the plans). In buildings where anyone gets it, a median of 75% of homes do.

Offering plans spell out the rules. 842 Sixth Avenue's plan says that to qualify, the unit must have been purchased before January 5 for the coming tax year and must be the owner's primary residence. The owner can't own more than three units in the condo or be receiving the clergy exemption. The unit can't be owned by a business or by the sponsor, and if it's held in a trust, it must be the primary residence of all the beneficiaries, the trustee or the life estate holder.

Ways owners lose it without knowing

Buying in an LLC. A unit "owned by a business" doesn't qualify. See buying in an LLC vs. your own name.
Closing after early January means waiting a year for it to start.
421-a. The abatement and 421-a don't combine. In our data, no home with a 421-a exemption also had the abatement. When 421-a ends, the abatement can begin. See how 421-a works.
Not telling the building. Condo abatements are filed through the condo's board or managing agent. If you move in after buying from an investor, or move back in after renting the unit out, make sure the managing agent knows it's now your primary residence.

2. STAR: A Check, Not a Line on Your Bill

The School Tax Relief (STAR) program still exists, but owners who bought since 2015 don't see it on their city tax bill. They register with New York State and get it as a credit check. That's why it doesn't appear in the city's records for new condos at all. Basic STAR is for owner-occupants with household income up to $500,000; Enhanced STAR, for owners 65 and older, is larger and has a lower income limit. If you've never registered with the state, you may be missing it.

3. Exemptions for Seniors, Veterans, People with Disabilities and Clergy

These reduce the taxable value of a home, and each has its own application with the Department of Finance:

Senior Citizen Homeowners' Exemption (SCHE): for owners 65 and older under an income limit. 27 homes in our plans had it.
Veterans exemption: for veterans who served in wartime, more for combat service or a service-connected disability. 38 homes had it.
Disabled Homeowners' Exemption (DHE): for owners with disabilities under an income limit. 3 homes had it.
Clergy exemption: 1 home had it.

New condos skew younger and wealthier, so these numbers would be small anyway. But they're also easy to miss when you buy, since nobody files them for you.

4. Solar Panels Can Cut Every Owner's Tax

When a building installs solar panels, the city's solar abatement can be shared across the units' bills. 19 homes in 4 of our plans received it, including units at Lexe in Crown Heights, 1007 Bergen Street and 327 20th Street. The typical yearly abatement was 5% of the installation cost, spread over several years. If your building is considering solar, the abatement is part of the math; the city also has abatements for green roofs and energy storage.

5. J-51 in Renovated and Converted Buildings

J-51 rewards major building improvements. It mostly shows up on rentals and co-ops, but some converted and gut-renovated condos carry it: 24 homes in 5 of our plans, including 558 West 150th Street and 127 Putnam Avenue. If you're buying in one, ask how many years are left, since your taxes rise when it ends.

What to Do

Check your bill. Your Notice of Property Value and tax bill on the Department of Finance site list every exemption and abatement on your unit.
Tell the managing agent the unit is your primary residence, and confirm the board filed for the co-op/condo abatement.
Register for STAR with the state if you qualify.
Apply for SCHE, DHE or the veterans exemption directly with the city if they fit.
Before you buy, read the offering plan's "Real Estate Taxes" section, and compare the projected taxes with real bills. See plan tax estimates vs. actual bills and property taxes by building.

FAQ

What is the co-op/condo abatement in NYC?

A yearly reduction on the property tax of a co-op or condo that is its owner's primary residence. The rate depends on the building's average assessed value per unit; most homes in our data got 17.5%, worth a typical $2,600 a year.

Why don't I have the condo abatement?

Common reasons: the unit is owned by an LLC or other business, it isn't your primary residence, you closed after early January, you own more than three units in the condo, or the building still has 421-a. Ask the managing agent whether your unit was included in the condo's filing.

Can I get the condo abatement and 421-a at the same time?

No. In our data, no home with a 421-a exemption had the abatement. It can start when 421-a ends.

Does STAR apply to condos?

Yes. Owners who bought after 2015 get it as a credit check from New York State, not on the city bill, after registering with the state.

Do condo owners get a tax break for solar panels?

If the building installs them, yes. The city's solar abatement can be split across the units' tax bills; in our data it typically came to 5% of the installation cost a year.

Where this comes from: 23,012 condo homes in 1,146 NYC offering plans, matched to their tax lots and looked up in the NYC Department of Finance's Property Abatement Detail and Property Exemption Detail records for tax year 2025–26; the eligibility rules quoted from 842 Sixth Avenue's offering plan. We count breaks by home, not by owner, and name no individual owners. Programs and limits change; check with the Department of Finance or New York State before you apply. This is general information, not tax advice. Updated November 2026.