What Is STAR

We will do a brief overview here, as we have an in-depth article on the system already on the books. Like most states, the largest source of property taxes in New York is school districts. In order to bring relief from these taxes, the STAR program was founded to lower the taxable value of homes through exemptions or credits. These measures can save you hundreds or even thousands of dollars a year on your school district taxes, making STAR the best option for getting a break on your taxes.

STAR Exemption vs. STAR Credit

One of the more confusing aspects of the STAR system is that it comes in two varieties, exemptions and credits. STAR was originally a standard reduction of taxable value, just like the current homestead exemption. This meant that you could reduce the taxable value of your home by a certain dollar amount, lowering your tax burden. STAR credits, on the other hand, see checks sent out to compensate homeowners for a portion of their taxes. These two systems have coexisted for many years, with taxpayers being able to choose between them.

This changed in 2016, when reforms were done to the system. The exemption option was eliminated, leaving homeowners only the option of using credits. However, those who had exemptions could keep them, allowing longtime homeowners to use the type they preferred. If you have an exemption, as long as you stay in your home, you can use it. New homeowners, however, must use the credit system. If you have an exemption and would like to switch to credits, then you can. However, you will lose access to your exemption permanently. The standard STAR exemption removes $30,000 from your home’s taxable value, while credit checks are usually worth between $250 and $500.

Enhanced STAR

Seniors across the country are seeing greater help from property taxes, and New York is no exception. For homeowners 65 or older, there is the Enhanced STAR Program. This is one of the most generous exemption plans in America for seniors, granting extensive tax relief. If you still have an exemption, it jumps to a reduction of $86,000. If you use the credit system instead, you can typically expect a check of $800 up to $1,500. No matter the option chosen, Enhanced STAR has been the central pillar for senior taxpayers to protect their homes for years. New York also has a potent senior homestead exemption, which can reduce up to 65% of a home’s value from the tax rolls. STAR and the homestead exemption can be used at the same time, potentially eliminating school taxes altogether.

STAR Requirements

The STAR program is beneficial for many homeowners, but it does have strict requirements to ensure that only those in need of relief can get it. The standard STAR credit or exemption requires that the homeowner have an income less than $500,000 to receive a tax credit, while the exemption requires an income less than $250,000. Enhanced STAR is stricter, with a cut-off income of $110,750 as of 2026, though this cap is slowly increasing. These income requirements help keep schools funded while also helping working and middle-class families. Income eligibility is determined by the Income Verification Program (IVP) of your local assessor, using federal and state income tax returns.

The property that you wish to use STAR for must be your primary residence. It cannot be applied to a vacation home, rental property, or other such pieces of real estate. Your primary residence is determined by where you vote, where your vehicles are registered, and how long you spend there. These restrictions also apply to the homestead exemption. To qualify for Enhanced STAR, all of the owners must be 65 or older, except for married couples, in which case only one needs to be over 65.

STAR Deadlines

If you wish to benefit from Enhanced STAR, you must apply by March 1, 2026, though this can be extended depending on your assessor’s taxable status date. This will allow your exemptions or credits to start on the following year, granting you increased savings. You must turn 65 by December 31 of the year you are exempting. If you already have a basic STAR account and are turning 65, your assessor should contact you by mail with forms to upgrade. To sign up for basic STAR, you must do so by March 1 or your assessor’s taxable status date for it to count for the current year. If you apply after your school taxes are due, typically in September, then your STAR program will be applied in the following year.

Use Tax Grievances to Enhance Your STAR Savings

While STAR is a true blessing if you own a home, it does only apply to school taxes. Though some jurisdictions will apply STAR benefits to all taxes, most do not. This means you are left holding the bag for some of the highest taxes in the nation. There is an option to help lower things further, however, and that is property tax grievances. Also known as appeals or protests, grievances allow you to dispute the taxable value of your home or other property, making sure you are paying the proper amount and not something excessive. By lowering your overall taxable value, grievances can get you lower taxes from all types, not just schools. Best of all, they can still lower your school taxes, allowing exemptions like STAR to bring things down even further.

Whether you need help with exemptions, understanding income verification, analyzing your assessment, or filing a grievance, O’Connor is here to help. For over 50 years, we have been fighting property taxes across the country. We are dedicated to getting you fair and accurate tax relief. You will never be charged a dime unless we can lower your taxes, meaning you have nothing to lose by standing up for your rights. We have a branch office in New York and currently do residential grievances for  Nassau, Suffolk, and Westchester counties.