With median property tax bills in New York over twice the national median, you're likely wondering what you can do to reduce your bill. As a New York resident, you may be eligible for the School Tax Relief, also known as the STAR Program in New York.
Every county in New York has its own unique nuances regarding credits and property tax exemptions. We're here to provide a general guide to property taxes in the state.
What is the NY STAR Program?
The New York State School Tax Relief (STAR) program provides a partial exemption from school property taxes for most homeowners. It is the single most common way to reduce your property tax bill in New York. The program is available in three forms:
1. A direct STAR credit (a check from the state) for new homeowners
2. A STAR exemption (a reduction on your tax bill) for those who've owned their home continuously since before August 1, 2015.
3. The Enhanced STAR, which is for homeowners aged 65+ with a household income of $110,750 or less (updated for 2026-27).
Recent changes to STAR have resulted in the state distributing an additional $2.2 billion to nearly 3 million homeowners. As of the 2025-2026 tax year, only the owner living in the house has to submit their income for the New York State STAR program. The Enhanced STAR income cap also increased to $110,750 for 2026 and 2027.
Property Tax Saving Benefits With the STAR Credit
The NY STAR program offers a straightforward method for homeowners to calculate their property taxes and reduce the school tax portion of their property tax burden.
Although taxes on commercial property also fund school districts, the STAR Benefit program is only available to residential homeowners. Business owners can't use it to reduce commercial property taxes.
Direct STAR Benefit
The STAR Credit is a direct tax reduction to your school tax bill payments, not a credit or reimbursement on your income tax return. In most cases, the credit is issued as a check or payment directly from the state, which you can then apply towards your property taxes. It does not apply to your income tax return.
Lower School Tax Bill
For most New York homeowners, school district taxes account for approximately 60-70% of the total tax bill. In some counties, school tax bills can reach five figures.
The STAR program in New York State reduces the taxable value of residential homes, which lowers the amount billed by your local tax assessor. The credit requires the state to reimburse you for a portion of your property taxes that were paid to the school district.
Annual Benefit
The STAR benefit is convenient because once you've applied and been approved, you don't need to reapply. It's an easy and hassle-free way to save on property taxes without worrying about additional costs each year.
STAR Credit vs. STAR Exemption: What's the Difference?
The main difference depends on when you bought your home. Here’s a simple breakdown:
Feature | STAR Credit | STAR Exemption |
|---|---|---|
Who Gets It? | Homeowners who purchased their primary residence after August 1, 2015. | Homeowners who have owned their home continuously since before August 1, 2015, and have not switched. |
Income Limits | Household income ≤$500,000 | Household income ≤$250,000 |
How It's Paid | A check or direct deposit is mailed to you from New York State. | A direct reduction on your school tax bill. |
Benefit Growth | The credit value can increase by up to 2% each year. | The exemption savings amount is capped at the prior year's savings and does not increase. |
How to Apply | You must register online with the NYS Department of Taxation and Finance. | Applications for new exemptions are no longer accepted. |
Can I Switch From the STAR Exemption to the STAR Credit?
Because the STAR credit value can grow each year, many homeowners with the older, frozen STAR Exemption choose to switch. Many also switch if their household income is over the $250,000 threshold but under the STAR credit threshold of $500,000.
You can use the online Homeowner Benefit Portal to switch to the credit instead. Be aware that if you do, you can't switch back. Also, note that the exemption cannot be transferred if you move to a new residence. If you move, you will need to reapply for the STAR credit on the new property.
Some of the most common questions about the updated STAR credit concern what happens when you turn 65. If you turn 65 and qualify for the Enhanced STAR and already receive the STAR exemption, the new system automatically applies you to the upgrade.
Basic STAR vs. Enhanced STAR
Some of the most common questions about the updated STAR credit (sometimes called the Basic STAR) concern what happens when you turn 65. If you turn 65 and qualify for the Enhanced STAR and already receive the STAR exemption, the new system automatically applies you to the upgrade.
The STAR program has two levels of benefits depending on your age and income.
Program | Age Requirement | 2026-2027 Income Limit | Key Benefit |
|---|---|---|---|
Basic STAR | None | $500,000 or less | Provides a foundational level of school tax savings. |
Enhanced STAR | At least one owner must be 65 or older | $110,750 or less | Provides a significantly larger school tax savings — roughly double the Basic STAR benefit. |
If you currently have Basic STAR and meet the age and income requirements for Enhanced STAR, you should apply for the upgrade to maximize your savings. In some cases, the state may automatically upgrade you, but it's always best to verify.
How To Apply For the STAR Credit
If you're a new homeowner or want to switch from the exemption, you must register for the STAR credit directly with the state. Your local assessor no longer handles the application. Here are the steps:
1. Go to the NYS STAR Registration Website: Register with the state's STAR webpage by using the Homeowner Benefit Portal.
2. Provide Your Information; you'll need:
Social Security numbers of all owners and their spouses
Approximate date of purchase
Federal or state income tax returns for all owners (There's additional financial information for homeowners who were not required to file an income tax return)
Most recent school tax bill (if applicable)
Address of any residential property owned in another state
3. Answer Eligibility Questions: The online portal will guide you through a series of questions to confirm your residency and income eligibility.
4. Submit and Save Confirmation: Once you complete the registration, save a copy of your confirmation page for your records.
Note: You can no longer apply for the exemption — only the STAR credit.
Timeline:
Each New York county, and sometimes municipalities within counties, has a different annual deadline for applying. Here's an entire list of STAR application deadlines.
STAR Denials and Retroactive Applications
If you lose eligibility or your application is denied, you can reapply or appeal through the Homeowner Benefit Portal. Your county also has a local appeals process to file a property tax grievance in New York.
Here's one simple reason why you should appeal property taxes: If you apply late, you may be eligible for retroactive credits for the missed years, as long as you register in time and meet the requirements. At Ownwell, we can assist you in filing a Nassau County property tax grievance if needed.
Ensure You're Getting Every Dollar You Deserve
The STAR program is the first step to lowering your New York property tax bill, but is it enough? Many homeowners are still overpaying because their property's assessed value is too high.
At Ownwell, we ensure you're maximizing your savings from every angle:
Assessment Review: We analyze your property's assessment to determine if you're a good candidate for a tax grievance.
Property Tax Experts: If you're being unfairly or overcharged, we handle your entire property tax grievance from start to finish. Plus, you only pay 25% of the tax bill savings if we save you money.
In New York, we currently service Nassau, Suffolk, and Westchester counties. Don't just settle for the STAR savings. See how much you can reduce your property tax bill even further with Ownwell. See how much you can reduce your property tax bill even further with Ownwell.
