The Nest

NestApple's Real Estate Blog

Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.

What is the NYC Parking Tax Exemption?

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Let’s face it, living in the city of New York, and Manhattan is expensive. Everything you do seems to cost more than almost anywhere else in theWhat is the NYC Parking Tax Exemption? country. One of the worst extras that you pay for in Manhattan is a parking garage. It can seem egregious at times. But as a Manhattan resident, you may have heard about the parking tax exemption that you might have access to. We will make sure you understand everything about this tax exemption. We’ve researched it extensively and provided this complete review for you. So what is the NYC Resident Parking Tax Exemption, and how does it work from the nyc gov finance parking tax exemption? And maybe even more importantly, how can you check to see if you’re eligible for the exemption. You’ll find the answers to those questions and more if you keep reading.

What is the Manhattan Resident Parking Tax Exemption?

The Manhattan Resident Parking Tax Exemption is a NYC program that the city leaders have put to help residents save money on parking. Being such a popular city — both domestically and internationally — NYC is one of the most expensive cities in the country for nearly everything, and parking facility is no exception.

For those looking for long-term parking within the city, you can rent a parking space to ensure you always have access to somewhere to park your motor vehicle. As anyone who lives in NYC can attest to, it isn’t exactly cheap to do so. On top of the actual cost of renting the parking space, the sales tax rate on rental parking spaces in NYC as of 2021 is a whopping 18.375%. This is where the Manhattan Resident Parking Tax Exemption comes into play.

Under the Manhattan Resident Parking Tax Exemption, this tax on rental parking spaces is lowered by 8%, down to just 10.375%. And while 10.375% is still a pretty steep additional amount to pay, it’s a heck of a lot cheaper than the typical 18%+! So if you’re a resident in Manhattan and want to save a substantial amount of money on your rental parking space, see if you can qualify for the exemption!

How Do I Qualify for the Manhattan Resident Parking Tax Exemption?

Where to apply for the NYC parking tax exemption

The Manhattan Residence Parking Tax Exemption PDF Application is downloadable here. Successful applicants receive a Parking Tax Exemption Certificate from the Department of Finance, which must be renewed every two years.

How to qualify for the NYC parking tax exemption

Qualifying for the Manhattan Resident Parking Tax Exemption is pretty easy for many residents of Manhattan that own a car. There are just a few things that you need to make sure you hit. Most importantly, you should understand that the vehicle qualifies for the Manhattan Resident Parking Tax Exemption, not you personally or the rental parking space. So if you have multiple cars, they’d both need to qualify for the exemption.

Let’s take a look at the vehicle eligibility rules for the Manhattan Resident Parking Tax Exemption, per the NYC Finance Department:

  • The person applying for the exemption must own the vehicle individually. It cannot be co-owned by multiple members of the same family.
  • The vehicle must be registered to the owner’s primary residence, which of course, must be in Manhattan.
  • You must park the vehicle in a long-term rented space for at least a month or more.
  • You can only drive the vehicle for personal use. This means that commercial vehicles, rental cars, and company vehicles are not eligible for the exemption.

As you can see, it pretty much boils down to being a Manhattan resident and owning your vehicle. So if you meet these requirements, be sure to apply for the Manhattan Parking Tax Exemption.

Keeping Your Exemption Active

Keeping it active is a super easy process once you are granted the Manhattan Resident Parking Tax Exemption. When younyc gov finance parking tax exemption first get the exemption, it remains active for two years after every subsequent renewal. Every other June, you will receive a renewal request.

You need to submit your renewal request by August 31st of that year. Then the city can confirm you still qualify. Once they approve the renewal, you’ll have another two years with an active exemption!

Other Ways to Save Money on Parking in NYC

If you do not meet all of the requirements, you can look for ways to save even more on long-term parking. We can analyze a few other ways to save money on parking in NYC.

Flexibility

If you’re planning on leaving your vehicle somewhere for a long period (a month or more), consider leaving it a little further away from the city or in less expensive areas. Central Manhattan is one of the most costly locations in New York. Look outside the downtown city limits, and you could save substantial money.

Book Your Parking Spot Online

Booking your rental parking spaces online or by using the apps of the many parking lots can save you money in a couple of different ways. First, you can quickly compare prices side by side and get the lowest rates. Secondly, while booking online, you will often find coupons or promo codes that directly lower your parking rate.



Written By: Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.

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