From a ban on data centers to a large tax on luxury homes in NYC, there have been a lot of property tax developments in New York in the past year. With counties like Westchester and Nassau having some of the highest property taxes in the nation, along with the highest property values, many New Yorkers are looking for any relief they can get from rising taxes. While property tax grievances are becoming a big focus across the state, many homeowners will be seeing material relief in the next few months thanks to a simpler program.
The New York School Tax Relief Program (STAR) works like a standard homestead exemption does in most states. While a select few can use it as an exemption, most New Yorkers will benefit from it by getting relief checks or deposits sent directly to them. As school taxes start to come due, STAR payments will begin hitting bank accounts and mailboxes across the Empire State. In this article, we will cover the STAR program and how you can benefit from it as a homeowner.
STAR Overview
As with most states, school taxes are the largest form of property tax in New York. STAR was created to help homeowners bring down this bill. Originally, STAR acted as a standard homestead exemption, lowering a portion of a property’s market value that could be taxed. However, this was updated in 2016 to allow for STAR credits instead. Instead of cutting a portion of their property from the tax rolls, homeowners could instead get a direct payment to offset costs. Homes bought after 2016 would only qualify for STAR credits, while those from before could stick with their exemption or switch to the credit. Once a homeowner chose the credit option, there was no way to go back to the exemption.
How Much STAR Saves
The amount of money saved through STAR will depend on how much your home is valued by the assessor. For the most part, if you have the standard STAR credit, you will see a check or deposit worth around $250 to $500. If you instead have a STAR exemption, you will see $30,000 removed from your home’s value. Like many exemptions in New York, the STAR program does have income limits. In order to receive a credit, you must have an income of less than $500,000. The exemption, on the other hand, requires an income no higher than $250,000.
Enhanced STAR
While most counties in New York have their own senior homeowners’ exemptions, New York offers a statewide program for people over 65. Enhanced STAR offers larger savings than the base program and is available for every homeowner over the age of 65 that has an income under $110,750. When it comes to credits, you can expect an average savings of between $800 and $1,500. The Enhanced STAR exemption offers a robust $86,000 reduction in taxable value. The income cap is set to gradually increase every year, opening up more opportunities for seniors across New York.
STAR Payments Processing Now
With the due date for school taxes across New York fast approaching, STAR payments are sure to follow. Checks and deposits are typically sent out between July and September, though the timing depends on when your taxes are due. Currently, it is expected that New York will see over $2 billion in relief funds distributed in 2026, which will go to over three million homeowners. This does not include exemptions, which means that STAR is bringing even more relief. Both the STAR payments and taxes are for the 2025 tax year, so any new registrations will not count, but will be effective in 2027.
Deadline to File
While the chance to file for the 2025 tax year has passed, you can still sign up for the STAR program or upgrade to Enhanced STAR. As long as you register by December 31, 2026, you will be able to claim a credit on taxes in 2027. If you fail to sign up by December 31, you will still have a window in 2027 to register, with the deadline typically being March 1. If you qualified for the STAR program but never registered, you can file for a retroactive credit up to three years from the tax due date. To get retroactive savings, you must have met all conditions to file. For example, if you bought a home in 2025, you cannot ask for a credit for 2023.
STAR with Other Exemptions and Grievances
One of the things that makes the STAR program so versatile is that it can be used with other tax reduction strategies. While it does act as the standard New York homestead exemption, STAR can stack with various other exemptions to provide additional savings. For instance, many counties offer reductions for senior homeowners, which can be supercharged with STAR to bring in extra savings. You will need to check with your county to see what exemptions are offered.
STAR can also be used with property tax appeals or grievances. Grievances challenge the values of the assessor directly, and can secure a reduction in taxable value if it is found your home is overassessed or unfairly assessed. This will not hurt your resale value, STAR credits, or other exemptions, and will often lead to greater savings. Grievances are also important for businesses, rental homes, second homes, and other forms of real estate that do not get a benefit from traditional exemptions. It is common for New York property owners to combine exemptions, grievances, and STAR credits to maximize their cashflow. This is particularly true in high-dollar counties such as Westchester, Nassau, and Suffolk.
O’Connor Offers Premium Support with Grievances, Exemptions, and More
The New York property tax system is one of the most complex in the nation and often takes expert help to navigate it fully. We at O’Connor are here to aid you in your journey and provide full support for homeowners and businesses. When you sign up with us, we can give exemption guidance, file grievances, and represent you in hearings before the Board of Assessment Review (BAR), through Small Claims Assessment Review (SCAR), and beyond.
For over 50 years, O’Connor has provided expert evidence, analytics, and support to property owners all over the nation. While most grievance deadlines have passed, you can get a jump on things by signing up with us. By getting started before 2027, we can begin gathering evidence, advise you on missing exemptions, and be ready to roll when deadlines come around. By protesting your taxes every year, you ensure that you are only paying what you need to, and not a penny more. There is no cost to join, and you will only pay if we can lower your taxes.
