The 421-a Tax Break Is Fading From NYC Condos

Updated Oct 11, 2026 · 3 min read

421-a, Year by Year

The 421-a program let many new buildings pay little or no property tax on the new construction for years, which meant lower monthly costs and a selling point for listings. From 2017 through 2022, 20 to 37 NYC condo plans a year cited it. Since the program closed to new projects in June 2022, that's fallen to 6 to 9 a year (2023–2025), more than two-thirds fewer on average.

The handful still citing 421-a are projects that started construction before the June 2022 deadline and are only now coming to market. They have to finish construction by a set deadline to keep the benefit.

Why So Many Small Buildings?

Since 2018, about 80% of condos citing 421-a had 35 apartments or fewer. The 2017 version of 421-a, known as Affordable New York, mostly required rental buildings to include affordable units. Condos could qualify without that only under a homeownership option limited to buildings outside Manhattan with 35 apartments or fewer, with a cap on assessed value per apartment. That's why recent 421-a condos cluster at just under the line:

• Fabric Astoria in Astoria: 35 apartments
• Apollo Plaza in Elmhurst: 35 apartments
• Carriage on the Beach in Brighton Beach: 33 apartments
• Golden Garden in Flushing: 33 apartments
• urban32 on Ocean Avenue in Flatbush: 32 apartments

Of the 148 condo plans filed since 2018 that cite 421-a, Brooklyn accounts for about 56% and Queens about 39%. Manhattan has only 6.

What About ICAP, J-51 and 485-x?

• ICAP (Industrial and Commercial Abatement Program) shows up in more plans than 421-a since 2022 (84 versus 24 filed from 2023 on), but it's for commercial space.
• J-51 rewarded renovations and conversions of older buildings. It appears in 71 condo plans, 93% of them filed before 2022.
• 485-x, the 2024 replacement for 421-a, is aimed mainly at rental housing. Expect few new condos to carry a tax break like the old 421-a.

The catch: rising ICAP mentions don't mean lower taxes for owners. Many plans say plainly that ICAP applies only to the retail or community facility unit and doesn't lower residential taxes.

What It Means for Buyers

• Expect full property taxes in most new condos. Budget for them in your monthly costs. Our property tax benchmarks show what new condos project.
• If a building does have 421-a, check the phase-out. The benefit shrinks over time, and your taxes rise as it does. The offering plan shows the schedule, often unit by unit in Schedule A.
• Check the status. Some plans say the sponsor has applied for a benefit but hasn't received it. Read the amendments for updates.
• Don't confuse it with the co-op/condo abatement. The city's separate abatement for owner-occupied apartments is a different program, and eligibility rules apply.

Search "condos with a 421-a tax abatement" on The Condo Book Project.

Related: How a NYC Condo Property Tax Estimate Works · The SoHo Condo Market