The New York City tax abatement program is complex.

We are the only management company offering a dedicated, in-house Compliance Department that helps boards, condo owners, and shareholders meet all the requirements to attain a tax reduction, wherever possible.


Condominium owners and cooperative shareholders who meet the eligibility requirements for New York City's Property Tax Abatement Program can have their annual property taxes reduced. The amount of the abatement is based on the average assessed value of the residential units in the development.

To help owners and shareholders navigate requirements for filing tax abatements in the 2025/2026 tax year cycle, our experts answered the most frequently asked questions.

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Do all shareholders/unit owners need to complete the online tax abatement questionnaire?

Only eligible shareholders/unit owners who use the apartment as a primary residence and fall under any of the below categories should complete the questionnaire:
  • Shareholders/unit owners who purchased after January 1, 2023
     
  • Shareholders/unit owners who had a change in primary residence status since January 1, 2024
     
  • Shareholders/unit owners who had a change in ownership (i.e., transfer to a trust, addition or removal of an owner, name change) since January 1, 2024
     
  • Shareholders/unit owners who did not previously receive the tax abatement on their maintenance bill during the 2024 year (cooperatives) or on their most recent tax bill (condominiums)
     
  • Shareholders/unit owners who live in a co-op or condo with an expiring tax exemption (i.e., 421a, 421g, J51) who need to apply for the first time
If more than one individual owns the apartment, at least one apartment owner of record must use the apartment as their primary residence to qualify for the abatement. An apartment owned by a trust is eligible only if the apartment is the primary residence of all the beneficiaries of the trust, trustee(s), or the life estate holder(s).

An apartment owned by other than natural persons or trusts (e.g., limited liability companies or corporations) is not eligible for the abatement, regardless of primary residence status.

Visit the DOF website to learn more about owner/shareholder eligibility requirements.
 

What is the deadline to submit the tax abatement questionnaire?

Submissions will be accepted through December 31, 2024. Late submissions will not be accepted.
 

When can I expect to receive my abatement?

The 2025/26 tax year begins on July 1, 2025, and ends on June 30, 2026. Condo owners enrolled in the abatement program may start to see their abatement credits reflected on their July 2025 tax bill. For co-op shareholders, the New York City Department of Finance (DOF) is expected to mail the 2025/26 abatement benefit schedule in December 2025, with credits to be issued in the spring of 2026.

Co-op shareholders receiving the abatement can expect to see the annual credit on their maintenance bill when approved by the co-op’s board.

Condominium owners receiving the abatement can expect to see the credit on one of their quarterly or semiannual tax bills issued by the city.

The DOF requires a building to pay prevailing wage to staff to remain eligible for the abatement program. Therefore, if your board decides to opt out of paying prevailing wage, shareholders/unit owners will not receive the tax abatement for that year.
 

What is prevailing wage?

As of July 1, 2022, New York City condos and co-ops are required to pay building workers a prevailing wage or forfeit their eligibility for the tax abatement program. The amendment was signed into law by Governor Kathy Hochul on September 6, 2021 and specifically applies to multifamily condos and co-ops with an average assessed value of more than $60,000.

For a condo property, the average assessed value is the sum value of all units divided by the total number of units. For co-ops, a single average assessed value is assigned to the entire building.

If the building has less than 30 units, the average assessed value per unit must be more than $100,000 for the prevailing wage requirement to apply.

Click here to learn more about the impact of the Prevailing Wage Law.
 

I own multiple units but only received a notification for one apartment. How do I respond for my additional apartments?

If your apartments are not legally combined (one maintenance/common charge statement), you need to respond for each unit that you use as a primary residence.
 

Do I need to submit a response for my parking or storage space?

No, only residential apartments are eligible for the abatement program.
 

What do I enter for “Date of Purchase”?

Owners should enter the date they purchased the unit.
 

If I do not know my purchase date, what do I enter?

If you purchased prior to 2023, please enter your best estimate. If you purchased in 2023, you must be as specific as possible as it could impact your eligibility.
 

How is my property management company involved in filing my tax abatement?

FirstService Residential provides our clients with an online portal to submit questionnaire responses. Basic fields are auto-populated to help make the process easy and convenient. To protect private, personally identifiable information, certain fields will never auto-populate, including first and last names, social security numbers, and purchase dates.

Our Compliance Department will file the forms for all owners who respond within the deadline. However, this does not guarantee that any owner will receive the abatement. The DOF, not FirstService, makes the ultimate determination if an owner is eligible to receive the abatement.
 

How do unit owners/shareholders apply for other personal exemptions?

New York State and the DOF administer an array of tax exemptions and abatements for seniors, veterans, clergy members, people with disabilities, and other homeowners. These benefits can lower your property tax bill. For exemption eligibility information, please visit the DOF website.

Owners and shareholders can apply for exemptions below:  

Our in-house Compliance Department makes things easy for boards, owners, and shareholders.

Compliance should be a simple, straightforward process that doesn’t make life stressful. Our in-house Compliance Department supports boards, owners, and shareholders through the complex web of housing law requirements.

This also frees up valuable time for your property manager to focus on important board business and building priorities – everything from violation disputes, tax abatements, emergent local law updates, and forthcoming deadlines.

Contact our local experts today.

Click here for a full list of additional services and strategic affiliated companies available to our managed properties.

 
 
Friday June 28, 2024