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Tax Exemptions And Abatements

Tax Exemptions And Abatements

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Exemptions lower the amount of tax you owe by reducing your property's assessed value. Abatements reduce your taxes by applying credits to the amount of taxes you owe. Both exemptions and abatements can be awarded by the City for a variety of reasons. A few of the most common types:

  • J-51 is a property tax exemption and/or abatement for renovating a residential apartment building. The benefit varies depending on the building’s location and the type of improvements.
  • STAR exemptions apply to owner-occupied, primary residences whose households earn a combined income of less than $500,000 per year.
  • 421a exemptions are awarded to multifamily buildings whose value property changes due to new construction work.

Exemptions and abatements are typically tied to the property, and their benefits are “released” according to a pre-determined time schedule (usually 10, 15, or 20 years long). For current and future unit owners these benefits translate into reduced property taxes.

More information:

http://www.nyc.gov/html/dof/html/property/exemptions.shtml