Carol Staab
Associate Broker
Douglas Elliman
111 Fifth Avenue
New York , NY 10003

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Property Taxes, Condo vs Co-Op

Property taxes are levied identically for condos and co-ops. The only difference is in how they are paid. Co-ops and condos are class 2 properties defined as residential buildings with more than three units. An owner’s share of
property tax is calculated based on the unit’s size and location in the building.

In a co-op the real estate taxes are payable on the entire building and then are allocated based on the percentage of interest of the co-op owner. The taxes are part of the co-op owner’s maintenance. The co-op pays the property taxes to the city from the maintenance.

Condos on the other hand have their own separate real estate tax payments and each condo owner pays their own taxes to the city.

That said, there is no real advantage to buying a condo versus a co-op with respect to property taxes. However, condos typically have higher taxes than co-ops. This is due to condos being newer, larger and richer in amenities causing them to have higher market value and thus higher taxes.