The STAR program, created by the New York State, gives a property tax cut for homeowners who live in their homes as their main house. This is a direct money benefit for many families and retirees who have to pay educational taxes every year.
Over the years, the program structure has changed, so there are two main versions with different rules: Basic STAR and Enhanced STAR. Both have different requirements and impacts, and we’ll explain it all for you to know if you qualify for either one or the other.
The Basic STAR Tax Relief
The Basic STAR option is for homeowners of any age, if the total yearly income of all homeowners and their spouses who live in the house is not more than $500,000.
Assistance can be gotten in two ways: an exemption, which is a reduction on the school tax bill, or a tax credit, which is a direct money payment. Today, most new applicants are added to the credit system instead of getting the exemption on their tax bill.
The Enhanced STAR Tax Relief
Enhanced STAR is for only seniors, people who are 65 or more. In addition to the age requirement, there is also a household income limit, which is changed each year. For fiscal year 2025, this is $107,300. For fiscal year 2026, it will be $110,750.
To apply for this benefit, applicants must join the Income Verification Program. This function works as an automatic income screening mechanism, allowing the state to check your tax returns. This streamlined process makes a significant, practical difference in how you receive your benefit.
Exemption Vs. Credit STAR: Understand The Difference
The exemption reduces how much the property is worth when it is used to work out the education tax bill. The credit is a money payment from the State of New York that can be in a paper check or in a direct transfer of money to the bank account of the person who gets the benefit.
This change has caused problems in practice for homeowners who have mortgages with escrow accounts, because they have to make sure the person who runs their mortgage changes their monthly payments to reflect that the benefit is coming back to them and not paid straight away.
The benefit is not the same amount of money for each person. The local area and school district where the property is located will change how much relief there is, because each school district is different when it sets the taxes.
STAR Tax Relief Top Amounts
Usually, the relief that comes with Basic STAR is between $300 and $600 a year. Enhanced STAR normally has a larger amount of relief, between $700 and $1,500 or more in very high school taxes areas.
The amount of the credit can go up by as much as 2% every year. This is an advantage over a exemption, which stays the same and does not go up in value. The way to apply for and get this benefit is run in one place.
The person who wants the benefit must go to the official website of the New York Department of Taxation and Finance and check if they have already signed up or start a new one. They can also do this by calling 518-457-2036.
During this process, the person can be checked if they can get either option, and they can be asked for any papers needed to prove their income. Once approved, the person has two options for how they get the benefit:
- they can choose to get the money by direct deposit and get it faster,
- or they can choose to get it by a paper check that is sent through the mail.
How to Track your STAR Tax Relief
They are sent in groups based on the calendar the school district uses to calculate taxes. The sending of checks and direct deposits, for most districts, happens from the middle of summer into the fall months and may not finish until October or November.
For example, for districts where the taxes are paid in September, the refund will be sent after the September date. The state provides an online source called the “STAR Credit Delivery Schedule” that can be used to see the estimated time the payment will be made for the property. This is