In New York State, property taxes represent a significant burden on households, and programs like School Tax Relief (STAR), a key equity tool, exist to alleviate these burdens and make living in “The Empire State” more livable and affordable.
Implemented in 1997 and reformed in 2016 to transition from direct exemptions to refundable credits, STAR mitigates local school costs for homeowners. By 2025, with New Yorkers’ combined income under pressure from inflation and rising property values, this benefit will cover more than 2.5 million households, according to data from the State Department of Revenue.
The STAR Initiative lightens tax burdens while preserving housing affordability in a market where the median price of a single-family home exceeds $450,000.
The STAR tax benefits program: the two components
The core of the program lies in its duality: Basic STAR for general homeowners and Enhanced STAR for seniors. To qualify, the property must be the applicant’s primary residence, defined by objective criteria such as vehicle registration, electoral vote, and length of occupancy.
This excludes second homes or investment properties. Property includes single-family homes, condominiums, apartments in cooperatives, modular homes, and residential farms, but not corporate entities or LLCs, except in the case of farm homes. Purchasers under executory contracts are considered owners upon signing.
Those who are eligible for Basic STAR
For Basic STAR, eligibility is accessible: there is no age restriction, but the combined income of the owners and their resident spouses must not exceed $500,000 annually for the credit, or $250,000 for the traditional exemption.
This threshold, adjusted for inflation, is calculated based on the 2023 federal income tax return (line 11 of Form 1040 less the taxable portion of IRA distributions) or the equivalent state IT-201.
Married couples receive a single benefit, unless legally separated. By 2025, this will position Basic STAR as a safety net for middle-income families, covering 70% of initial applicants, according to state reports.
Now, let’s look at the Enhanced STAR
Enhanced STAR raises the threshold for protection for the most vulnerable taxpayers. It requires at least one owner to reach age 65 by December 31 of the tax year, with exceptions for widows (62 and older if the deceased spouse was eligible) or cohabiting siblings (as long as one qualifies).
The income limit for 2025 is $107,300, an 8.7% increase from $98,700 in 2024, taking into account cost-of-living adjustments. This calculation includes incomes of all owners, resident or not, plus spouses in the household. Nursing home residents retain eligibility if no one else occupies the property.
For 2026, the cap rises to $110,750, signaling an expansionary trend. Overall, Enhanced STAR benefits nearly 800,000 seniors, prioritizing those facing fixed pensions in a state with a cost of living 20% above the national average.
How much you could expect from this tax relief program
Benefit amounts vary by school district and municipality, determined by the local tax rate and assessed property value. In 2025, refundable credits—sent as checks between July and December—average within predictable ranges.
For Basic STAR, most receive between $350 and $600, with variations: in New York City, it ranges from $274 to $278 per tax class; in counties like Nassau, basic exemptions reach $630 in districts like New Hyde Park-Garden City.
The maximum savings do not exceed school taxes paid, and are adjusted via invoices or escrow. If the actual rate exceeds the estimated rate, the excess is credited to the following year.
Enhanced STAR tax rebates are bigger
Enhanced STAR doubles the impact, with credits between $700 and $1,500 for most. In New York City, the amount is $730 to $743; in suburban areas like Westchester, it can reach $1,200 or more in high-tax districts. For those who opt to maintain the previous format, the exemptions are slightly lower: $643 to $659 in NYC for enhanced, versus $269 to $272 for basic.
These amounts represent up to a 45% reduction in school taxes for median households, according to an analysis by the Department of Revenue. Geographic variability underscores inequalities: in upstate areas like Rochester, basic averages are around $400, while on Long Island they exceed $800 for enhanced.
How to apply for the tax benefit
This can be done through the official portal of the Tax Department (tax.ny.gov), and you must follow all the steps and have on hand all the requirements that will be requested of you.
The number of beneficiaries eligible for this program is expected to exceed 1.5 million across New York State by 2025, stabilizing household budgets in the face of 5% increases in average appraisals.
