NYC Property Taxes

In NYC, 421a tax abatements were introduced in 1971 and were implemented to encourage developers to develop unused and underutilized land by offering them reduced property taxes for a set amount of time, typically between 10 to 25 years. Usually, the tax break goes with the property, as long as the project continues to qualify. So if you're buying a co-op or condo in New York City, you may have come across listings that include what is called a 421a tax abatement.

The NYC transfer tax, also known as the NYC Real Property Transfer Tax (RPTT), is a tax that applies to all transfers of real property and cooperative shares over $25,000. The NYC transfer tax also applies when transferring a majority of the ownership in any corporation that owns NYC property.

The average co-op flip tax in NYC is between 1% to 3% of an apartment's sale price, but the exact amount varies by building. HDFC buildings can have much higher flip taxes, and even some condos have them as well.

The NYC mansion tax is calculated based on the purchase price of a property, and in 2023 it ranges from 1% to 3.9%. Depending on the price, the mansion tax rate increases progressively and only applies to homes that sell for $1 million or more.

It’s no secret that people who purchase property are often concerned with the and amount of property tax payments they will have to make, and NYC owners are no exception. We're taking a look at how rates are assessed and why some uber-luxury condos and co-ops receive tax bills that seem far too low.