The STAR (School Tax Relief) program is one of the most direct ways New York State reduces the property tax burden on homeowners — but thousands of eligible New Yorkers miss out every year because they never registered, or they’re still on the old exemption track when they could be getting more money, faster, as a direct credit check.
This guide covers exactly how the program works, who qualifies for Basic vs. Enhanced STAR, the updated income limits for the 2026–2027 school year, how to register or switch, and what seniors need to know to protect their benefit.
What STAR Actually Does
STAR stands for School Tax Relief. It’s a New York State program authorized under Real Property Tax Law (RPTL) § 425 that reduces the school district portion of your property tax bill. In New York City specifically, the benefit applies to both city taxes and school taxes — NYC is one of five cities in New York (along with Buffalo, Rochester, Yonkers, and Syracuse) where the exemption is split across both components.
The program has two tiers: Basic STAR for most homeowners, and Enhanced STAR for senior citizens age 65 and older who meet the income threshold.
Two Ways to Receive the Benefit
One of the most confusing things about STAR is that there are two delivery mechanisms — and they work very differently:
STAR Credit — A check or direct deposit sent directly to you by the NYS Department of Taxation and Finance before your school tax bill is due. This is how every new registrant receives STAR. The Tax Department reviews your eligibility automatically each year based on your income tax filings, so you don’t need to reapply annually.
STAR Exemption — A direct reduction on your property tax bill, applied by your local assessor. This is the old system. If you’ve been receiving the exemption since before 2015 and haven’t moved, you can keep it. But the STAR exemption is no longer available to new homeowners — everyone who registers today receives the credit.
If you’re still on the exemption, you may want to consider switching to the credit. The credit tends to increase at a faster rate, and you receive the money directly in your bank account rather than as an offset buried in your bill.
Basic STAR: Who Qualifies
Basic STAR is available to virtually any New York homeowner whose primary residence is in New York and whose income falls within the limits:
- STAR Credit income limit: $500,000 or less (combined income of all owners and resident spouses)
- STAR Exemption income limit (legacy recipients only): $250,000 or less
There is no age requirement for Basic STAR. The benefit is calculated based on the first $30,000 of your home’s full assessed value.
Eligible property types include single-family homes, condominiums, cooperative apartments, manufactured homes, and farmhouses. Corporations, partnerships, and LLCs are not eligible unless the property is a farm dwelling.
Enhanced STAR: What Seniors Need to Know for 2026
Enhanced STAR provides a significantly larger benefit for homeowners 65 and older. The income limits are adjusted annually. Here are the current figures verified directly from the NYS Department of Taxation and Finance for this school year:
- Income limit for the 2026–2027 school year: $110,750 or less (up from $107,300 for 2025–2026)
- Assessment basis for 2026–2027: First $88,500 of your home’s full value (up from $86,100 in 2025–2026)
The income limit applies to the combined adjusted gross income of all owners and their resident spouses. Critically, the income of non-resident owners is not counted. If an adult child co-owns your home but doesn’t live there, their income does not affect your eligibility.
Only one owner must be at least 65 years old as of December 31 of the benefit year — not all owners. For surviving spouses: if your age-eligible spouse passes away and you were at least 62 at the time, you can retain the Enhanced STAR benefit. If you were under 62, you’ll receive Basic STAR until you turn 65, at which point you’ll automatically step up to Enhanced STAR.
How Income Is Calculated
For STAR purposes, income means your federal adjusted gross income minus the taxable portion of IRA distributions. This is an important distinction — IRA distributions often inflate a senior’s apparent income significantly, but the RPTL carves them out of the STAR income calculation.
Here’s how to calculate your STAR-qualifying income:
- From Federal Form 1040: Subtract line 4b (taxable IRA distributions) from line 11 (federal AGI)
- From NYS Form IT-201: Subtract line 9 (taxable IRA distributions) from line 19 (federal AGI)
Your 2026 STAR benefit is based on income from your 2024 tax returns. If you weren’t required to file income taxes, the Tax Department will send you a letter asking for your income information directly.
How to Register for STAR (Step by Step)
All new STAR registrations are processed online through the NYS Homeowner Benefit Portal. There is no paper form to mail in for the STAR credit. Here’s how to do it:
- Go to ols.tax.ny.gov and log in or create a free Individual Online Services account
- Click the ≡ Services menu in the upper-left corner of your Account Summary homepage
- Select Real property tax, then choose Homeowner Benefit Portal
- Select Register and follow the on-screen prompts
Have the following ready before you start:
- Social Security numbers for all property owners and their spouses
- Name of the school district where your home is located
- Approximate date the current owners purchased the property
- Names of the sellers (optional, but can speed up processing)
- Your most recent school tax bill, if you’ve received one
- 2024 federal or New York State income tax returns for all owners
After submitting, you’ll receive a confirmation number. Save it. If you contact the Tax Department about your registration, they’ll use it to verify your identity. You can also find it later through your Homeowner Benefit Portal account.
You only need to register once. The Tax Department will automatically issue your STAR credit each year as long as you remain eligible. The exception: if there’s a change in ownership (marriage, divorce, death of a co-owner, or a sale), update your registration.
Renewing Enhanced STAR: The Income Verification Requirement
Enhanced STAR requires annual income verification. If you’re registered for the STAR credit, the Tax Department handles this automatically by cross-referencing your filed tax returns — you don’t need to do anything.
If you’re still receiving the Enhanced STAR exemption through your local assessor, ask your assessor whether you’re enrolled in New York State’s Income Verification Program (IVP). If you are, your income is verified automatically. If you’re not, you may be required to re-file Form RP-425-IVP annually to maintain the benefit.
The simplest move for most seniors on the old exemption: switch to the STAR credit so verification is automatic and there’s no annual paperwork risk. To switch, log in to the Homeowner Benefit Portal at ols.tax.ny.gov, select Actions → Switch to credit.
When Will Your STAR Payment Arrive?
STAR credit payments are issued before school tax bills are due in your area. The exact timing depends on your school district. The NYS Tax Department publishes an updated STAR Credit Delivery Schedule at tax.ny.gov that shows estimated payment windows by region.
In your first year after registering, your payment may arrive later than the school tax due date — the Tax Department recommends registering as early as possible after moving into a new primary residence to avoid this. After the first year, payments are automatic.
If your school taxes are paid through a mortgage escrow account, call your lender and let them know you’ve registered for the STAR credit. They’ll need to adjust your escrow calculation to account for the payment you’ll receive directly.
STAR for Co-ops and Condos in NYC
Co-op and condo owners in New York City are eligible for STAR — but the mechanics differ from single-family homes.
For co-ops, the co-op corporation typically receives the STAR exemption on behalf of all shareholders and passes the benefit through proportionally. Your co-op’s managing agent or board treasurer can confirm whether the co-op is registered and how much of the benefit is allocated to your unit. Individual co-op shareholders do not register for STAR separately — the corporation does.
For condos, individual owners register directly, exactly like single-family homeowners, through the Homeowner Benefit Portal.
What to Do If You Never Registered
There is no retroactive benefit — you cannot receive credit for years in which you weren’t registered. But there’s no penalty for registering late either. If you’ve owned your primary residence in New York for years and never enrolled, register as soon as possible. Your benefit will begin in the next cycle after the Tax Department processes your registration and confirms eligibility.
The Tax Department will send you a letter if anything needs to be verified. Don’t ignore those letters — they typically have a response window, and missing it can delay your benefit.
Contact Information
NYS Department of Taxation and Finance — STAR Program
Phone: 518-457-2036
Online: tax.ny.gov/star
Homeowner Benefit Portal: ols.tax.ny.gov
For NYC-specific property tax questions:
NYC Department of Finance
Phone: 311 (in NYC) or 212-NEW-YORK (212-639-9675) from outside the city
Online: nyc.gov/finance
Primary Sources
- Register for STAR — NYS Department of Taxation and Finance
- STAR Eligibility — NYS Department of Taxation and Finance
- Types of STAR — NYS Department of Taxation and Finance
- NY Real Property Tax Law (RPTL) § 425
Tax advice in this article is informational. Consult a tax professional or the NYC Department of Finance for your specific situation.
