STAR exemption New York: how to apply and income limits

Last updated 2026-07-10

What is the STAR exemption and how does it lower your tax bill?

STAR stands for School Tax Relief. New York created it in 1997, and it cuts the school district portion of your property tax bill. That's usually the biggest slice of what you pay. The program changed a lot starting in 2019, so plenty of what you'll find online is stale.

Here's the structure. If you bought before 2016 and already had a Basic STAR exemption on the books, you may still get it as a direct reduction on your assessment. Everyone who registers for the first time after August 1, 2015, gets a check from the state instead, called the STAR credit. The dollar amounts are close. The delivery is different. The New York State Department of Taxation and Finance runs the credit program; your local assessor handles the older exemption applications ^[1].

Two tiers. Basic STAR goes to any homeowner whose household income is under $500,000 and who owns and lives in the property as a primary residence. Enhanced STAR is for owners who are 65 or older by December 31 of the tax year and whose household income falls under the Enhanced threshold, which the state adjusts every year for inflation ^[2].

One thing catches people off guard: STAR does not reduce your total assessed value. It only offsets the school tax levy. If your assessment is wrong, STAR savings won't fix that. If you think your overall assessment is inflated, a formal appeal is a separate path worth taking. Our nyc property tax guide covers how New York City's assessment system works if you're in the five boroughs.

What are the STAR income limits for 2025?

Income limits trip up more people than anything else, because the two tiers have very different thresholds and the Enhanced number moves every year.

Basic STAR income limit: $500,000 in combined household income. That figure has been fixed at $500,000 since 2016 and applies to the combined income of all owners and their spouses, whether or not both names are on the deed ^[1].

Enhanced STAR income limit for 2025: $107,300. The state resets this every year with a cost-of-living calculation. For 2024 it was $104,969; for 2023 it was $98,700. The threshold the Department of Taxation and Finance publishes each spring is the one that applies to applications processed that year ^[2].

The income the state uses is your federal adjusted gross income (AGI) minus any taxable IRA distributions. That last part matters for retirees. A big one-time IRA withdrawal can push you over even if your recurring income is modest. The state looks at income from two years prior, so your 2025 Enhanced STAR eligibility rides on your 2023 income ^[3].

Here's a quick comparison:

Program	Who qualifies	Income limit	Age requirement
Basic STAR credit	Primary residence owners	Under $500,000 household income	None
Enhanced STAR credit	Primary residence owners	Under $107,300 (2025)	At least one owner must be 65 by Dec 31 of the tax year
Basic STAR exemption (legacy)	Pre-2016 registrants	Under $500,000 household income	None
Enhanced STAR exemption (legacy)	Pre-2016 registrants	Under $107,300 (2025)	Same 65+ rule

Savings amounts change by school district and county because they ride on each district's tax rate. Statewide, the typical Basic STAR credit has run in the $700 to $800 range annually in recent years, while Enhanced STAR credits have averaged closer to $1,400 to $1,500 for many Long Island and Hudson Valley homeowners ^[4].

How do you apply for STAR in New York for the first time?

First-time applicants don't file with the local assessor anymore. Since August 1, 2015, new registrations go straight to the New York State Department of Taxation and Finance, and you get a check instead of a direct assessment cut ^[1].

You register online at tax.ny.gov. The state's portal asks for your Social Security number (and your spouse's, if applicable), your property's tax map identifier or school district, and your income information. You also certify that the property is your primary residence.

Enhanced STAR has two paths. If you're already in the state's Income Verification Program (IVP), the state checks your income against tax records automatically each year and you never reapply. If you're not in IVP, you submit Form RP-425-IVP to your local assessor, who forwards it to the state ^[3]. Enrolling in IVP is worth it. It kills the annual renewal chore for good.

Steps for a first-time Basic STAR registration: 1. Go to tax.ny.gov and find the STAR registration link. 2. Enter your property information and Social Security number. 3. Certify your primary residency and income. 4. The state mails a registration confirmation, then sends a check after your school tax bill is issued.

For Enhanced STAR, the process is similar, but you also submit Form RP-425-E to your local assessor by the deadline (see the deadlines section below). If you want the IVP route, add Form RP-425-IVP at the same time ^[3].

Bought your home before 2016 and never had STAR? You still go through the state online portal, not your local assessor. The assessor-based paper process only applies when you're converting an existing Basic exemption to Enhanced.

What is the STAR application deadline in New York?

The deadline is where New York's system gets genuinely messy, because the date depends on which program you're in and which county you're in.

For the state STAR credit (the check program used by every new registrant after August 2015), the state recommends registering by July 1 of the year you want the credit. Miss that and your check may arrive late in the year, possibly after your school tax bill is due, which creates a cash-flow squeeze even though you're owed the money ^[1].

For the legacy STAR exemption (older registrants converting from Basic to Enhanced through their local assessor), the standard deadline is March 1. Real Property Tax Law Section 425 sets this as the general taxable status date, though a handful of jurisdictions, including New York City and Nassau County, run different assessment calendars ^[5].

Here's why this matters in practice: if you turn 65 this year and want Enhanced STAR starting next school year, you have to file with your local assessor by March 1. Miss it, and you wait a full year.

Nassau County uses a taxable status date of January 2, so the real deadline there lands in early January. New York City's property tax system is a different animal from the rest of the state; our nyc property tax guide covers how exemptions work in the five boroughs.

So: register for the state credit by July 1, and file assessor-based exemption conversions by March 1 (or January 2 in Nassau County).

What if you already get Basic STAR, can you switch to Enhanced STAR?

Yes, and you should do it the year you turn 65 if your income qualifies. Enhanced STAR saves roughly twice as much as Basic STAR in most districts, so the upgrade pays for the paperwork many times over.

If you get the legacy Basic STAR exemption (the direct assessment reduction), you convert by filing Form RP-425-E with your local assessor by March 1. Add Form RP-425-IVP at the same time to enroll in automatic income verification, and you'll never have to renew by hand ^[3].

If you get the Basic STAR credit (a check), the state handles the upgrade automatically once you register for Enhanced STAR through the online portal at tax.ny.gov. The state pulls Social Security Administration data to confirm your age.

One timing note. Turn 65 mid-year and you still qualify for Enhanced STAR for that entire assessment year, as long as you hit 65 by December 31. No waiting until the next year.

How much does STAR actually save you?

The savings depend on your school district's tax rate and on the STAR exempt amount the state sets for your county. The state calculates an exempt amount, multiplies it by your school district's tax rate, and that product is your savings.

The exempt amounts for the 2024-25 school year, as published by the Department of Taxation and Finance, ran from about $18,000 in New York City to roughly $81,400 in certain other jurisdictions ^[4]. Enhanced STAR exempt amounts are set at 45% above the Basic STAR exempt amount in the same area ^[8].

A real-world example. A homeowner in a Long Island district with a school tax rate near $20 per $1,000 of assessed value and a Basic STAR exempt amount of $30,000 saves roughly $600 a year. The same homeowner on Enhanced STAR at $43,500 saves around $870. Those are ballpark numbers. Your actual savings hinge entirely on your district's rate.

The state publishes actual credit amounts by county and school district every year in its STAR credit amount tables at tax.ny.gov ^[4]. Looking up your specific district there gives you the most reliable estimate before you apply.

Can you lose your STAR exemption or credit, and what triggers a removal?

Yes. The state and local assessors do audit STAR eligibility, and owners have lost the benefit for several reasons.

Common reasons the state removes or denies STAR:

• Income tops the limit in the prior-year tax return the state reviews
• The property is no longer your primary residence (common with second homes or rental conversions)
• You failed to answer a state verification request (the state mails these and expects a response within 45 days)
• You claimed STAR on more than one property
• A co-owner died and the surviving owner never updated records

If the state sends a letter questioning your eligibility, answer it fast. The 45-day window is real. Miss it and the state removes the exemption or stops the credit, and getting it back means a new application ^[1].

Did your income jump above the Enhanced STAR threshold because of an IRA distribution or a one-time capital gain? You're required to tell your assessor (for the exemption), or the state will catch it through the IVP. You may still qualify for Basic STAR if your income is under $500,000.

What if you're denied STAR or your exemption is revoked, how do you appeal?

Two different appeal paths exist, depending on which type of STAR benefit you hold.

For the state STAR credit (the check program), you file a formal complaint with the Department of Taxation and Finance. The state's complaint process asks for documentation that backs your eligibility, usually proof of primary residency (driver's license, voter registration, utility bills) and tax returns showing your income ^[1].

For the legacy STAR exemption run by your local assessor, you appeal through the normal property tax grievance process. File Form RP-524 (Complaint on Real Property Assessment) with your local Board of Assessment Review by Grievance Day. In most counties, Grievance Day falls on the fourth Tuesday in May ^[10].

If the Board of Assessment Review turns you down, the next step is Small Claims Assessment Review (SCAR) for residential property. SCAR is a low-cost hearing before a state-appointed referee, and you don't need a lawyer, though you do have to meet the filing requirements under Real Property Tax Law Section 730 ^[5].

Keep this straight: an appeal over a denied exemption is a different fight from a full assessment appeal. If you also think your assessed value is wrong, separate from the STAR issue, those are two battles. Our nyc property tax page covers assessment appeals for New York City owners.

Want to run the appeal yourself and skip handing a contingency firm a cut of your savings? A structured DIY approach can work. TaxFightBack's appeal kit walks through gathering evidence and filing, and you keep 100% of whatever you recover.

Does STAR apply to co-ops, condos, or rental properties?

STAR covers more than single-family homes, but conditions apply.

Condominiums qualify for STAR as long as the unit is the owner's primary residence and income limits are met. The application is the same as for a house ^[2].

Co-ops work differently. A co-op building gets a single STAR exemption for the whole building if it files with the local assessor, and that exemption is then split among qualifying shareholder-tenants. Live in a co-op? Confirm with your building's management whether they filed for the exemption and whether your unit is in it. The managing agent or board usually handles this; individual shareholders don't file separately ^[2].

Rental properties don't qualify. The exemption is strictly for primary residences. If you turned your home into a rental, tell your assessor or the state (depending on which STAR program you're in), because keeping STAR on a rental is treated as fraud under New York law ^[1].

Mobile homes on leased land are eligible for STAR if the owner pays school taxes directly. If the park pays the school tax and the tenant pays the park, eligibility comes down to the specific arrangement.

How does STAR interact with other New York property tax exemptions?

STAR can stack with other exemptions, but the interaction isn't always dollar-for-dollar additive.

Veterans exemptions, senior citizen exemptions (under RPTL Section 467), and disability exemptions are all separate from STAR and are run by your local assessor. You can collect STAR alongside any of these if you qualify for both ^[5].

The senior citizen exemption under Section 467 is often more generous than Enhanced STAR for lower-income seniors, but the two use different income math and different application processes. Some homeowners qualify for both and get both. Apply for Section 467 through your assessor if your income is low. The income limit for Section 467 varies by municipality but must be set at least at $3,000 under state law, and many towns set it much higher ^[5].

STAR doesn't touch your regular assessed value for purposes of an assessment appeal. If you win an appeal and your assessed value drops, your STAR savings may shift a little because the school district tax math changes. But the STAR exempt amount itself is set by the state, not by your individual assessment.

Managing property tax in more than one state? Our guides on montgomery county property tax and st louis county personal property tax cover how other jurisdictions handle exemptions and appeals.

What documents do you need to apply for STAR?

The document list is shorter than most people expect for a basic online registration. Enhanced STAR and income verification add a few items.

For Basic STAR credit registration (online at tax.ny.gov):

• Social Security numbers for all owners and their spouses
• Your property's school district name or tax map identifier (both on your tax bill)
• A commitment to certify primary residency (the state may follow up with verification requests)

For Enhanced STAR (through your local assessor for the exemption, or online for the credit):

• All of the above
• Proof of age for each qualifying owner (birth certificate, passport, or driver's license)
• Income records: usually your most recent federal income tax return (Form 1040) plus any Social Security benefit statements, pension statements, or other income documents for all owners and resident spouses
• If enrolling in the Income Verification Program: Form RP-425-IVP signed and submitted with Form RP-425-E to your local assessor ^[3]

Converting from Basic to Enhanced through your assessor? Bring the prior year's federal 1040 and a photo ID showing your date of birth to the assessor's office, or mail certified copies. Requirements vary a bit by town, so a quick call to your assessor's office before the March 1 deadline confirms exactly what they want.

One thing worth knowing: the IVP program pulls income data straight from tax filings once you enroll, so you won't resubmit income documents every year. For older homeowners who dread the annual renewal, IVP is worth the one-time paperwork.

Frequently asked questions

Can I get STAR if I just bought my home this year?

Yes. New homeowners register for the Basic STAR credit at tax.ny.gov using their Social Security number and property information. Register by July 1 to get a credit check around the time your school tax bill arrives. The state stopped allowing assessor-based STAR exemptions for new registrants after August 1, 2015, so the online portal is the only path for recent buyers. You qualify as long as the home is your primary residence and household income is under $500,000.

Does STAR apply to school taxes only, or does it also reduce county and town taxes?

STAR applies only to the school district portion of your property tax bill. It has no effect on your county, town, village, or special district taxes. Your school tax line is usually the largest single item on the bill, which is why STAR savings matter despite not covering everything. If you want to cut the other portions, a formal assessment appeal is the path to take.

What income is counted for STAR eligibility purposes?

The state uses your federal adjusted gross income (AGI) minus taxable IRA distributions. Social Security income is generally not counted for Basic STAR. For Enhanced STAR, the state looks at the combined income of all owners and resident spouses from two years prior. For example, 2025 Enhanced STAR eligibility is based on your 2023 income. Enrolling in the Income Verification Program lets the state pull this data automatically each year.

I'm turning 65 this year. When can I apply for Enhanced STAR?

You can apply for Enhanced STAR for the current assessment year as long as you turn 65 by December 31 of that year. If you hold the legacy Basic STAR exemption through your assessor, file Form RP-425-E with your local assessor by March 1. If you get the Basic STAR credit (a check), register for Enhanced STAR online at tax.ny.gov and the state verifies your age through Social Security records.

If I own two properties in New York, can I get STAR on both?

No. STAR applies to only one property per owner, and it must be your primary residence. Claim STAR on more than one property and the state treats it as fraud and can seek repayment with penalties. If you own a vacation home or rental besides your primary home, only your primary home qualifies. The state cross-checks Social Security numbers across parcels to flag duplicate claims.

How long does it take to receive a STAR credit check after I register?

The state issues STAR credit checks after school tax bills go out, which usually happens in August or September. Register by July 1 and expect your check around the same time as your bill. Register late and the check may land after your payment deadline, so you'd pay the full bill and treat the check as reimbursement. The state does not issue advance payments before school districts set their tax rates.

Can a trust or LLC own the property and still get STAR?

Generally, no. STAR requires that the property be owned by an individual who uses it as a primary residence. Property held in most LLCs or business entities doesn't qualify. Certain living trusts can qualify if the beneficiary who lives in the home is named and the trust meets state requirements under RPTL Section 425. If your property sits in a trust, contact your local assessor or the Department of Taxation and Finance to confirm whether that structure qualifies.

What happens to my STAR benefit if I refinance or do a title transfer?

A refinance alone doesn't affect STAR because ownership doesn't change. But a title transfer, like adding a child to the deed or moving the property into a trust or new ownership structure, can trigger a loss of the existing exemption. The new owner would need to re-register for STAR. If you're making any ownership change, contact your local assessor before the transfer to understand the effect on your exemption.

Is there a STAR exemption for New York City residents?

New York City property owners can get the STAR credit (check), but the city's property tax structure differs from the rest of the state. Co-op shareholders and condo owners in NYC can register for the STAR credit like any other homeowner. The NYC Department of Finance also runs several separate exemptions and abatements that work differently from upstate programs. See our full guide on nyc property tax for NYC-specific details.

What is the difference between the STAR exemption and the STAR credit?

The STAR exemption is the older form: your assessed value drops directly before your school tax bill is calculated, so the bill itself is smaller. The STAR credit, open to all new registrants since 2015, works differently: you pay your full school tax bill and the state mails you a separate check. The dollar savings are close, but the exemption cuts the bill upfront while the credit reimburses you after payment. The exemption is no longer available to new applicants.

Will I owe money back if my income goes over the limit after I receive STAR?

If you received Enhanced STAR in a year when your income exceeded the limit, the state can recoup that benefit. The Department of Taxation and Finance reviews income records and can issue a notice requiring repayment. For Basic STAR, the $500,000 cap is rarely an issue, but Enhanced STAR income violations do get audited. Enrolling in the Income Verification Program helps prevent this by letting the state check eligibility before issuing each credit.

My STAR check was less than I expected. Why might that happen?

A few things can shrink your check. Register after July 1 and the state may issue a partial-year amount. If your school district's tax rate fell from the prior year, your savings fall with it. The state also caps credit growth: under current law, the STAR credit can't increase by more than 2% per year over your prior year's amount. The state publishes final credit amounts by district at tax.ny.gov each fall.

Do I need to reapply for Basic STAR every year?

No. Once you're registered for the Basic STAR credit with the state, you don't reapply annually. The state sends your check automatically each year as long as you stay eligible. For Enhanced STAR, if you enrolled in the Income Verification Program, the state checks income automatically and you don't reapply either. If you're not in IVP and hold the Enhanced STAR exemption through your local assessor, your municipality may require annual income certification.

What should I do if my assessor says I'm not eligible but I think I qualify?

If you believe the assessor wrongly denied a legacy STAR exemption, file a grievance using Form RP-524 with your local Board of Assessment Review by Grievance Day (usually the fourth Tuesday in May). If the Board denies you, you can pursue Small Claims Assessment Review (SCAR) under RPTL Section 730 without an attorney. If the issue is with the state STAR credit program rather than a local exemption, file a complaint directly with the Department of Taxation and Finance.

Sources

1. New York State Department of Taxation and Finance, STAR resource center: New homeowners register for STAR credit at tax.ny.gov; income limit for Basic STAR is $500,000; state removes benefits for non-response to verification within 45 days
2. New York State Department of Taxation and Finance, STAR program (Enhanced STAR eligibility): Enhanced STAR income limit is $107,300 for 2025; at least one owner must be 65 by December 31 of the tax year; condominiums qualify if primary residence
3. New York State Department of Taxation and Finance, STAR program (Income Verification Program and Form RP-425-IVP): Enrolling in IVP via Form RP-425-IVP allows the state to verify Enhanced STAR income automatically; Form RP-425-E filed with local assessor for Enhanced STAR exemption conversion
4. New York State Department of Taxation and Finance, STAR program (credit amounts by school district): STAR exempt amounts range from about $18,000 in NYC to over $81,000 in some jurisdictions; state publishes credit amounts by county and school district annually
5. New York Real Property Tax Law (RPTL), Sections 425, 467, 730: RPTL Section 425 sets the March 1 taxable status date deadline for STAR exemptions; Section 467 governs senior citizen exemptions; Section 730 governs Small Claims Assessment Review (SCAR) process
6. New York State Department of Taxation and Finance, STAR program (registration for new homeowners): New homeowners register online; STAR credit replaced assessor-based exemption for all new registrants after August 1, 2015; recommended registration deadline is July 1
7. Nassau County, New York official website: Nassau County taxable status date is January 2, making that the effective Enhanced STAR filing deadline for Nassau homeowners
8. New York State Department of Taxation and Finance, STAR program (exemption amounts by municipality): Enhanced STAR exempt amounts are set at 45% above the Basic STAR exempt amount in the same locality
9. New York State Department of Taxation and Finance, STAR program (STAR credit 2% growth cap): The STAR credit cannot increase by more than 2% per year compared to the prior year's credit under current state law