Commercial Rent Tax

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Finance, Department of City
This tax is charged to tenants who occupy or use a property for commercial activity in Manhattan, south of the center line of 96th Street and pay at least $250,000 each year in rent. You are subject to the Commercial Rent Tax if you rent space Manhattan, south of the center line of 96th Street, for any trade, business, profession, or commercial activity. Your annual or annualized gross rent paid must be at least $250,000; and certain exemption may apply, such as short rental periods, residential subtenants, use for theatrical productions, and not-for-profit status.

Note: Tenants with annual taxable rents between $250,000 and $300,000 are eligible for a sliding-scale credit that partially offsets the tax.

A "tenant" is someone who pays rent as a lessee, sub-lessee, licensee, or concessionaire. Tenant-shareholders in co-ops are included. You must also pay the Commercial Rent Tax if you:

  • Occupy space in buildings owned by spouses or parents or owned jointly with others;
  • Occupy space in buildings owned by corporations where you are an officer or shareholder;
  • Are a corporation, occupying space in a building that is owned by a subsidiary corporation or a parent corporation; and
  • Are a corporation, occupying a space in a building owned by an officer or stockholder of the corporation.



NYC Department of Finance (DOF)
Commercial Rent Tax Unit
345 Adams Street, 5th Floor
Brooklyn, NY 11201
For further assistance, please call 311 and ask for: Department of Finance
Website: https://www1.nyc.gov/site/finance/about/contact-us.page

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