What is the NYC tax abatement and prevailing wage affidavit?

If you own a condo or co-op in NYC, you know property taxes can be a real headache. The good news? There’s a tax abatement that could save you thousands—if you meet the requirements.
What's the NYC co-op and condo tax abatement?
Introduced in 1996, the NYC tax abatement helps level the playing field between apartment owners/shareholders and owners of single- to three-family homes, which are taxed at significantly lower rates. The abatement reduces property taxes for qualifying NYC apartment owners.
Key facts:
- Application deadline: February 15 each year
- Reduction percentage: 17.5% to 28.1%, based on the average assessed value (not market value)
- Example: A 1,000-square-foot condo in Chelsea with an assessed value of $121,000 qualifies for a 17.5% reduction.
Average assessed value: Abatement percentage:
$50,000 or less 28.1%
$50,001 to $55,000 25.2%
$55,001 to 60,000 22.5%
$60,001 or more 17.1%
Learn more about abatements here.
Who qualifies for the tax abatement?
To be eligible, your unit must meet the following criteria:
✅ Used as your primary residence (investment properties do not qualify)
✅ Owned by an individual (not a business, sponsor, or trust)
✅ Fewer than four units owned by the applicant in the building
✅ Building must submit a prevailing wage affidavit with the application
✅ Purchased before January 5, 2024
New requirement (2025): Proof of primary residence
Applicants must submit one of the following:
- A current utility bill listing the unit address
- Voter registration linked to the unit address
- A government-issued ID matching the unit address
New condo owner? Be sure to file a Real Property Transfer Tax (RPTT) form or deed with the Division of Land Records at www.nyc.gov/acris.
What's a prevailing wage affidavit?
A prevailing wage affidavit is a certification confirming that a building is paying its employees the prevailing wage—the city’s designated wage and benefit rate for building service workers. It must be submitted with the tax abatement application.
Which buildings must submit this affidavit?
- Buildings with 30 or more residential units and an average assessed unit value over $60,000
- Buildings with fewer than 30 units and an average assessed unit value over $100,000
Who qualifies as a building employee?
Any worker regularly employed eight or more hours per week to service the building, including:
- Superintendents
- Cleaners/porters
- Doorpersons
- Elevator operators
What to submit:
- The prevailing wage affidavit along with the tax abatement application.
Can a building be ineligible for the tax abatement?
Yes. Buildings already receiving certain tax benefits are not eligible for the co-op and condo tax abatement. These include:
Disqualified building programs:
- Urban Development Action Area Program (UDAAP)
- Housing Development Fund Corporation (HDFC)
- Mitchell-Lama buildings
- Buildings in the Division of Alternative Management Programs (DAMP)
Disqualified abatements:
- J-51 exemption
- 420c, 421a, 421b, or 421g abatements
- Clergy property tax exemption (Choose between this and the co-op/condo abatement here.)
Your building qualifies - what's next?
If your building qualifies, your co-op or condo board is responsible for submitting the application. Here’s what to do:
- Confirm the number of qualifying units to ensure the maximum reduction.
- Submit your application by February 15 through the co-op/condo abatement portal, including the prevailing wage affidavit.
- Adjust your building’s budget to reflect the abatement. Avoid budgeting only for net taxes due, as this can cause cash flow issues.
- Review tax benefit letters mailed out in December to ensure accuracy.
- For co-ops: Consider a co-op tax abatement assessment to use savings toward maintenance and improvements rather than directly charging shareholders.
- Educate shareholders on their abatement credits to prevent confusion or disputes. Use infographics or videos to explain how abatements are handled for condos vs. co-ops.
Need help?
Have questions about tax abatements, compliance, or budgeting? Daisy can help streamline the process and ensure your building stays compliant. Get in touch with Daisy today!
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