The STAR credit vs. the STAR exemption
- STAR credit: New York State sends you a check or direct deposit each year to put toward your school taxes. Homeowners who bought after 2015 receive the credit, not the exemption.
- STAR exemption: a reduction applied directly to your school tax bill. It's closed to new applicants, but homeowners who have received it continuously on the same home can keep it.
- The credit can increase by up to 2% a year; the exemption's value can't increase. Exemption holders can switch to the credit, but generally can't switch back.
Who qualifies
- Basic STAR: you own the home and it's your primary residence. The combined income of the owners and any owners' spouses who live there must be $500,000 or less for the credit ($250,000 or less for the exemption).
- Enhanced STAR: a larger benefit when at least one owner is 65 or older and household income is under a limit New York sets each year. Eligibility is based on income from two years earlier, so the 2026 benefit uses 2024 income.
- New York may automatically upgrade eligible Basic STAR credit recipients to Enhanced STAR when they turn 65. If yours isn't upgraded, you can apply.
How to get it
After you buy your home, register for the STAR credit with the New York State Department of Taxation and Finance at tax.ny.gov. You register once; you don't need to re-register every year unless your ownership changes. Current income limits are posted there.
Beyond STAR: challenging your assessment
- If your assessment looks too high, you can file a grievance (Form RP-524) with your town. In most towns outside New York City, Grievance Day is the fourth Tuesday in May; confirm the date with your town assessor.
- Separate local exemptions may lower your bill further, including the senior citizens exemption for limited incomes and exemptions for veterans. You apply for these with your local assessor.
- Property taxes also count toward the federal state and local tax (SALT) deduction, which is capped. See New York tax changes for 2026.
Frequently asked questions
What's the difference between the STAR credit and the STAR exemption?
The credit is a check or direct deposit from New York State to put toward your school taxes; the exemption reduces your school tax bill directly. New homeowners receive the credit. The exemption is closed to new applicants but can be kept by those who already have it on the same home.
I just bought a home in New York. How do I get STAR?
Register for the STAR credit with the New York State Department of Taxation and Finance on tax.ny.gov. You register once, not every year, as long as you keep owning and living in the home.
What income limit applies to Enhanced STAR?
At least one owner must be 65 or older, and household income must be under a limit New York adjusts each year. The limit is applied to income from two years earlier, so the 2026 benefit uses 2024 income. Current figures are on tax.ny.gov.