⚠️ IMPORTANT

Exemption amounts, income limits, and deadlines vary significantly by municipality. The figures shown are examples or state maximums. Always verify specific requirements with your local assessor's office.

New York STAR Exemption: 2026 Guide

Everything you need to know about applying for and maximizing your STAR benefits

Key figures

Basic STAR, off assessed value
$30,000
school taxes only, no age test · RPTL §425
Enhanced STAR, off assessed value
$88,500
2026-27 school year, age 65+ · NYS Tax and Finance
Enhanced STAR income limit
$110,750
2026-27, resident owners and spouses · NYS Tax and Finance

Reviewed September 1, 2026 · figures come from the same data the calculator uses; sources are cited where each figure is discussed below.

Basic STAR
Enhanced STAR
Application Process
Savings Calculator

🚨 CRITICAL: New homeowners CANNOT get STAR exemption on tax bills

You MUST register at tax.ny.gov/star for STAR credit (comes as check/direct deposit). Since 2015, new STAR applicants cannot receive the exemption on their tax bill.

What is STAR?

The School Tax Relief (STAR) program provides property tax relief to eligible homeowners by reducing the taxable assessed value of their property for school tax purposes only.

Key Benefits

  • • Reduces school property taxes (not county, city, or special district taxes)
  • • Available to all qualifying homeowners (Basic STAR)
  • • Enhanced benefits for seniors 65+ with qualifying income
  • • Can save hundreds to over $1,000 annually

STAR Credit vs. STAR Exemption

STAR Credit (Required for new applicants):

  • • All new applicants must register for credit at tax.ny.gov/star
  • • Receive check or direct deposit from NY State
  • • No income limit for Basic STAR credit

STAR Exemption (Closed to new applicants):

  • • Only for existing recipients who already have it
  • • Income limit: $250,000
  • • Direct reduction on school tax bill

STAR Exemption Calculator: Estimate Your Savings

Calculate how much you could save with STAR credit or exemption

Important: This calculator provides estimates only. Actual STAR savings vary significantly by municipality, school district, and individual circumstances. Always verify with your local assessor or tax.ny.gov/star.

Enter your home's assessed value

Find this on your tax bill (school portion only)

Required for Enhanced STAR (must be 65+)

Optional - Basic STAR has no income limit for credit

STAR quick reference, 2026-27
Basic STAR Credit:
  • • Average: $375-$700/year
  • • No age requirement
  • • No income limit
Enhanced STAR Credit:
  • • Average: $1,000-$2,100/year
  • • Age 65+ required
  • • Income limit: $110,750

Basic STAR vs Enhanced STAR

Understanding the differences between the two STAR programs

Basic STAR

Eligibility

  • • Owner-occupied primary residence
  • • No age restrictions
  • • Income limit: $250,000 for STAR exemption (existing recipients only)
  • • No income limit for STAR credit program
  • • New applicants MUST use credit program regardless of income
  • • New York State residents

Benefits

  • • Up to $30,000 assessment reduction
  • • Applies to school taxes only
  • • Automatic renewal once approved
  • • Available statewide
Example Savings

School tax rate: 1.5%
STAR benefit: $30,000 × 1.5% = $450/year

Enhanced STAR

Eligibility

  • • Age 65 or older
  • • Income $110,750 or less
  • • Owner-occupied primary residence
  • • Must reapply periodically

Benefits

  • • Takes up to $88,500 off the value school taxes are figured on
  • • Significantly higher than Basic STAR's $30,000
  • • Note: Actual savings approximately $650-700 annually
  • • The $88,500 is the exemption amount, not the dollar savings
  • • Replaces Basic STAR (not additive)
Example Savings

School tax rate: 1.5%
Enhanced STAR: $88,500 × 1.5% = $1,328/year
(Actual exemption may be less based on local limits)

How to Apply for STAR

Step-by-step application process for both Basic and Enhanced STAR

Important Deadlines

Important Deadlines (Vary by Municipality):
  • • Most common deadline: March 1
  • • NYC: March 15 for Class 1, March 1 for other classes
  • • Always verify with your local assessor
  • • Some exemptions can be filed year-round
Processing
60-90 days typically
Benefits Begin
Next tax year

Application Steps

1
Determine Eligibility

Check if you qualify for Basic STAR (all homeowners) or Enhanced STAR (65+ with income limit)

2
Gather Required Documents
  • • Property deed or mortgage statement
  • • Driver's license or state ID
  • • For Enhanced STAR: Income documentation (tax returns, Social Security statements)
  • • Birth certificate (for Enhanced STAR)
3
Submit Application

• For STAR Credit: Register at tax.ny.gov/star (required for all new applicants)
• For existing exemptions: Contact your local assessor
• NYC residents still use tax.ny.gov/star for credit registration

4
Wait for Processing

Applications typically processed within 60-90 days. You'll receive notification of approval or denial.

5
Receive Benefits

STAR savings will appear on your next school tax bill, typically reducing your annual payment.

Enhanced STAR income limit (2026-27)

Current income thresholds for Enhanced STAR eligibility

2026-27 school year income limit: $110,750

The state adjusts this every year, so a figure you find elsewhere is probably last year's: it was $98,700 for 2024-25 and $107,300 for 2025-26. From 2026 the state counts only the income of resident owners and their spouses.

What Income Counts?

Included Income
  • • Wages and salaries
  • • Social Security benefits
  • • Pension income
  • • Investment income
  • • Rental income
  • • Business income
Excluded Income
  • • STAR benefits themselves
  • • Certain disability payments
  • • Some veterans benefits
  • • Gifts and inheritances
  • • Life insurance proceeds
Income Verification Required

You must provide income documentation including tax returns, Social Security statements, and other income records when applying for Enhanced STAR.

Veterans Property Tax Exemptions

Multiple exemptions available for eligible veterans

Veterans Exemption Formula:

  • • Alternative Veterans: 15% of assessed value
  • • Combat Veterans: Additional 10%
  • • Service-Connected Disability: Additional amount = half of disability percentage
  • • Cold War Veterans: 10% or 15% where adopted locally
Example Calculation:

30% disabled combat veteran = 15% + 10% + 15% = 40% total exemption

Note: Each locality sets maximum dollar amounts. NYC maximums vary by class.

Important Notes
  • • Each municipality sets its own maximum dollar amounts
  • • NYC has different maximums for different property classes
  • • Veterans exemptions can be combined with STAR
  • • Application deadlines vary by municipality

Other Available Property Tax Exemptions

Additional exemptions beyond STAR and Veterans benefits

Individual Exemptions

  • • Clergy: $1,500 reduction in assessed value
  • • Solar/Renewable Energy: 15-year exemption on increased value from systems
  • • Senior Citizens: Varies by municipality (income-based)
  • • Disabled Persons: Varies by municipality

Property-Based Exemptions

  • • Agricultural: Based on agricultural use value rather than market value
  • • 485-x (NYC): New construction tax abatement program replacing 421-a
  • • Nonprofit Organizations: Various exemptions for qualifying properties
  • • Historic Properties: Some municipalities offer preservation exemptions

Note: Availability and amounts vary significantly by municipality. Contact your local assessor's office for complete information about exemptions in your area.

Maintaining Your STAR Benefits

How to keep your STAR exemption active year after year

Basic STAR

  • Automatic Renewal: Once approved, Basic STAR typically renews automatically
  • Update Requirements: Must notify assessor if you move or sell property
  • No Income Verification: No annual income documentation required
  • Annual Review: Check tax bill to ensure benefit is applied

Enhanced STAR

  • Income Verification: Annual income verification required through IVP (Income Verification Program)
  • Automatic Renewal: If enrolled in IVP, no need to reapply
  • Manual Renewal: If not in IVP, must submit income documentation annually
  • Age Verification: Must remain 65+ to qualify
  • Notification Required: Report income changes that exceed limit

What Can Cause Loss of Benefits?

  • • Selling or transferring the property
  • • No longer using as primary residence
  • • Income exceeding limits (Enhanced STAR)
  • • Failure to renew when required
  • • Providing false information on application

Estimating Your STAR Savings

How to calculate potential savings from STAR exemptions

STAR Savings Formula

STAR Exemption Amount × School Tax Rate = Annual Savings

Example 1: Basic STAR (Upstate NY)

Property Value:$300,000
Assessment Ratio:100% (typical upstate)
Assessed Value:$300,000
STAR Exemption:-$30,000
Taxable for School:$270,000
School Tax Rate:1.2%

Annual Savings:$360
Monthly Savings:$30

Example 2: Enhanced STAR (Upstate NY)

Property Value:$400,000
Assessment Ratio:100% (typical upstate)
Assessed Value:$400,000
Enhanced STAR:-$88,500
Taxable for School:$313,900
School Tax Rate:1.8%

Annual Savings:$1,550
Monthly Savings:$129

NYC STAR Considerations

Important information for New York City residents

  • • NYC residents receive STAR as a credit (check), not a reduction on tax bill
  • • NYC has consolidated tax billing - no separate school tax bill
  • • STAR credit typically arrives in fall
  • • Average NYC STAR credit is lower than upstate due to different tax structure

Remember to report your STAR credit as income when filing taxes - FreeTaxUSA makes it easy with their free federal filing.

Frequently Asked Questions

Common questions about STAR exemptions

Can I have both Basic and Enhanced STAR?

No, Enhanced STAR replaces Basic STAR. You cannot receive both benefits simultaneously.

What if I miss the March 1st deadline?

• For STAR Credit: Can register anytime at tax.ny.gov/star

• For existing exemptions: March 1 is typical deadline for changes

• New homeowners: Have until next tax year to register for credit

• Late applications for exemptions: May not be accepted

Does STAR reduce all my property taxes?

No, STAR only reduces school district taxes. It does not affect county, city, town, village, or special district taxes.

Can I get STAR on a second home or rental property?

No, STAR is only available for owner-occupied primary residences. You cannot get STAR benefits on vacation homes, rental properties, or investment properties.

What happens if my income goes over the Enhanced STAR limit?

You must notify the assessor and will likely be switched back to Basic STAR. You may need to repay some benefits if the income increase was not reported timely.

Reviewed: 2026 | Source: NYS Department of Taxation and Finance

Disclaimer: Exemption amounts and eligibility requirements vary by municipality. Always verify current information with your local assessor's office.