Tax Relief – STAR and other exemptions
Q: What is a STAR exemption and how does it reduce school taxes?
A. Community members who own a home can significantly reduce their school property taxes through a School Tax Relief (STAR) exemption (PDF), a program paid for through state taxes. Basic STAR is available on a homeowner’s primary residence only and for households with an income of less than $500,000. Enhanced STAR assists homeowners age 65 and older with household incomes below a specific limit adjusted annually ($83,300 in 2015). Contact your town assessor’s office to apply or visit N.Y.S. Department of Taxation and Finance to learn more.
Q: Do I have to reapply for a STAR exemption every year?
A. Once a homeowner is registered, it is not necessary to reapply for STAR every year.Q: Is it possible to receive a STAR refund instead of a STAR exemption?A. The 2016-17 state budget included a provision to transition the STAR exemption into a refundable personal income tax credit. Anyone who purchased and paid school taxes on a home for the first time in 2016-17 received their STAR savings as a rebate check. Learn more about the STAR refund.
Q: Are taxpayers’ STAR savings factored into the budget?
A. No. The STAR program is tax relief for homeowners paid for by New York state through state taxes. It is not a source of additional funding for schools or a consideration in developing the annual school budget.
Q: Are there other tax relief options besides STAR?
A. There is also a senior citizen exemption that is based on income.Q: Will there be a property tax freeze credit for school taxes in 2017-18?A. No. New York’s Property Tax Freeze Credit ended for school taxes in 2015 and for local government taxes in 2016. Learn more.Q: Will there be a STAR tax rebate in 2017-18?A.Yes. Under the Property Tax Relief Credit, New York homeowners whose primary residence is outside of New York City may be eligible to receive a rebate check from the state. Between 2017 and 2019, the rebate amounts will be tied to a percentage of homeowners’ STAR tax savings and be available only to households with incomes under $275,000. Learn more.