Understanding New York State’s STAR Program

New York State offers the School Tax Relief (STAR) program to provide a bit of property tax relief to eligible homeowners.

First, who is eligible? The basic STAR program requires that you own your home, that it is your primary residence and that the total household income be $500,000 or less. An Enhanced STAR Program is offered for those age 65 and older, with an income of $98,700 or less for the 2024-25 school year, and $107,300 or less for the 2025-26 school year. Regardless of which benefit you qualify for, there are only two ways to receive it: (1) STAR credit or (2) STAR exemption.

Once registered, the homeowner receives the STAR credit in the form of a check issued by the Tax Department sent via regular mail, or the homeowner can enroll in direct deposit. Either way, it is designed to be a direct payment to the homeowner, received before the school bill is issued so that it may be used to pay a portion of the school tax bill.

The STAR exemption version of the program is only enjoyed by those homeowners who have been receiving the benefit prior to, and since, 2015. For these homeowners the benefit is issued differently – it’s a credit, or line-item reduction, on the school tax bill. Basically, it reduces the school tax bill.  This exemption version is no longer available to homeowners who have purchased a home after 2015.

Is there a benefit to switching from the STAR exemption to the STAR credit? The amount of the STAR credit can differ from the STAR exemption savings because, by law, the STAR credit can increase by as much as 2% each year, while the value of the STAR exemption savings cannot increase. See STAR credit and exemption savings amounts (ny.gov)

The method of receiving the benefit may have changed in the recent years, but the benefit itself still remains – which is extremely helpful to many homeowners. For frequently asked questions see here: STAR frequently asked questions (FAQs) (ny.gov)