Property owners in New York are not new to notably high property taxes, but few are aware of the tax relief programs that are available to help ease some of the tax burden. Tax relief programs such as STAR can greatly benefit New York property owners by helping them save up to thousands of dollars a year if eligible.
What is the STAR Program?
The STAR, or School Tax Relief Program, offers property tax relief to eligible homeowners in New York by reducing school district property taxes on their home or by offering refund credits. In this way, it compensates for the relief through state funds. Through this program, homeowners can achieve tax relief either through direct credits issued as checks or exemptions. Due to the large potential savings, it’s worth checking eligibility and registering as soon as possible.
Basic vs Enhanced
There are two types of benefits: Basic Star and Enhanced STAR. The type of benefits you can receive will depend on eligibility.
Basic STAR
To be eligible, the total household income cannot exceed $500,000 and the homeowner must reside in the property as their primary home. The key benefit is that the first $30,000 of the home’s value will be exempt through school taxes. Meanwhile, the typical credit payment amount has ranged between $350 and $600 in recent years.
Enhanced STAR
To be eligible for Enhanced STAR, you must be a senior homeowner aged 65 or older and have an income cap of $107,300 for 2025 or $110,750 for 2026. This benefit offers a higher credit, often between $700 and $1,500, depending on the location of the home.
Exemption vs Credit
Benefits can be received as an exemption or credit. For an exemption, if the homeowner has been receiving the exemption prior to 2016, it will directly reduce the school tax bill. This cannot be transferred if the recipient moves, however, but the taxpayer can then switch to receiving credit payments. Exemptions are no longer available to new homeowners, but only for existing recipients. There is good news! The credit still applies to new applicants or those switching from an exemption. New York issues the benefit through a check or a direct deposit, making it easier for homeowners to receive their credits. Once homeowners are registered, an annual reapplication is not required, so homeowners can rest easy.
How to Apply
Distribution of checks depends on regional school tax deadlines. Checks began mailing out in June and the process typically continues until early fall.
Basic STAR: Register online through the New York State Department of Taxation and Finance. On the site, apply through the STAR resource center or Homeowner Benefit Portal.
Enhanced STAR: If the homeowner already receives Basic STAR and meets the requirements, then the system will typically upgrade automatically, but it is important to check and be sure. If the homeowner currently has the original exemption and is eligible for the enhanced benefits, then they may apply through the local assessors.
Deadlines: Applications or changes must be filed by March 15 to take effect in the following tax year beginning July 1.
Once you’re registered, there is no need to reapply every year unless the status of the homeowner changes. It’s that simple.
Don’t Know Where to Start?
Work with O’Connor today and reach maximum potential savings. Our expert staff is prepared and ready to help you better understand what tax relief program you qualify for and help you every step of the way.
Have Questions?
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How O’Connor Can Help You
O’Connor has been in business for over 50 years, and we have the knowledge and skillset to challenge property taxes in New York for a successful reduction. We have an office in New York led by Frank Grampone and offer commercial property tax services in New York City and Long Island, as well as residential property tax services in Nassau, Suffolk, and Westchester counties. Our team has an in-depth understanding of market analysis due to having one of the most extensive proprietary property databases in the country. And we have an advantage in securing lower valuations for clients due to access to real-time sales data, market trends, and our own appraisal techniques. Sign up with O’Connor today and we’ll pursue every avenue to help you achieve lower property taxes.
