Most New Yorkers know about the Rent Freeze Program — SCRIE for senior renters, DRIE for tenants with disabilities. Fewer know that the city runs a parallel program for homeowners 65 and older that can cut a property tax bill in half. It is called the Senior Citizen Homeowners’ Exemption, or SCHE, and according to the NYC Department of Finance, it can reduce the assessed value of your home by anywhere from 5% to 50% — directly off your property tax bill, every single tax year, as long as you keep renewing.

If you own a one-, two-, or three-family home, a condo, or a co-op in New York City, you are 65 or older, and your household income is $58,399 or less, you almost certainly qualify. The program is administered through the Department of Finance, and the application is free.

What SCHE does

SCHE is a property tax exemption — not a refund, not a check in the mail, but a reduction in the assessed value the city uses to calculate your property tax bill. Reducing the assessed value reduces what you owe each year.

The size of the reduction depends on your income. According to the Department of Finance’s official savings table, a household earning $50,000 or less gets the maximum 50% reduction in assessed value. The percentage steps down in $900 income brackets up to the $58,399 cap, where it bottoms out at a 5% reduction.

Here is the official savings schedule, as published by NYC Department of Finance:

Translation: a senior couple earning $48,000 a year on a fixed retirement income, in a Queens row-house with a typical assessed value, can see thousands of dollars in property tax knocked off the bill every year — and that benefit compounds with every renewal.

The four eligibility rules, in plain English

Per the Department of Finance, you must meet all four:

1. Age

All owners must be 65 or older — unless the owners are spouses or siblings, in which case only one needs to be 65. So if you and your spouse own the house jointly and you’re 67 but your spouse is 63, you still qualify.

2. Income

The total combined annual income of the property owner and spouse/co-owner cannot exceed $58,399. Income includes Social Security, retirement benefits, interest, dividends, IRA distributions, capital gains, net rental income, wages, and net self-employment income. The IRA distribution piece is important: if you take a Required Minimum Distribution from a traditional IRA, that counts toward the income cap.

3. Ownership

You must have owned the property for at least 12 consecutive months before applying, unless you received the exemption at a previous residence — in which case you can transfer it.

4. Residency

All owners must occupy the property as their primary residence, with limited exceptions for divorce, legal separation, abandonment, or in-patient stays at a residential health care facility.

Note: You cannot receive both SCHE and DHE (Disabled Homeowners’ Exemption). If you qualify for both, the Department of Finance applies SCHE.

The deadline — and why filing early matters

The application window for SCHE opens September 15 each year. The deadline is March 15. If March 15 falls on a weekend or holiday, the deadline rolls to the next business day. The exemption applies to the tax year beginning July 1 after you apply.

The Department of Finance’s own advice, in bold on its program page: “Don’t wait until the last minute — file early for faster approval!” Filing well before March 15 gives the city time to flag missing documents and let you correct them. File on March 14 with a missing pay stub and your application can be denied — costing you a full year of savings.

How to Take Action

1. Confirm you qualify

Run your income against the $58,399 cap. Include all sources: Social Security, pension, IRA distributions, dividends, any side income. Use the official Income Calculation Worksheet at nyc.gov/finance if you’re unsure.

2. Apply online

The Department of Finance says filing online is “the fastest and easiest way to file.” There are two separate online applications:

• SCHE Initial Application — for one-, two-, or three-family homes
• SCHE Initial Application for Co-ops — for cooperative apartments

Both are accessible from nyc.gov/site/finance/property/landlords-sche.page.

3. If you prefer paper

Download the SCHE Initial Application PDF from the same page, fill it out, and mail it in. Paper applications are translated into Arabic, Bengali, Chinese, French, Haitian Creole, Korean, Polish, Russian, Spanish, and Urdu.

4. Renew every two years

SCHE must be renewed every two years. The Department of Finance will mail you a renewal notice when it’s time. The renewal window runs October 15 through March 15. If you miss it, the exemption drops off your bill — and you lose the savings for the next tax year.

5. Get help

For application questions or help completing the form, call 311 or email the Department of Finance through nyc.gov/contactdof. If you need an accommodation due to a disability, you can request the Disability Service Facilitator through the same channel.

SCHE vs. SCRIE — which one are you?

These are the two NYC senior property programs people most often confuse:

• SCHE is for senior homeowners. It reduces your property tax bill.
• SCRIE is for senior renters in rent-regulated apartments. It freezes your rent at a fixed amount and prevents future increases.

If you own, you want SCHE. If you rent and your apartment is rent-stabilized, rent-controlled, in a Mitchell-Lama, or in a Section 213 cooperative, you want SCRIE. Both are run through agencies of the City of New York; SCHE through the Department of Finance, SCRIE through the Department of Finance’s Rent Freeze Program.

One other senior homeowner program to check

If you also receive Social Security disability income or qualifying federal disability benefits and you own your home, the Disabled Homeowners’ Exemption (DHE) follows the same income cap and the same savings schedule as SCHE. As noted above, you can’t stack them — the city applies SCHE if you qualify for both. But if you’re a homeowner under 65 with a disability, DHE is the version you’d apply for, using a separate application on the same nyc.gov/finance page.

Why this matters now

Property taxes are one of the largest fixed expenses for any senior homeowner on a fixed income. A 50% reduction in assessed value can be the difference between staying in a home you’ve owned for 40 years and being forced to sell because the tax bill outran your retirement income. The exemption is not new — but it remains underused, and applications must arrive at the Department of Finance by March 15 to count for the tax year starting July 1.

The next initial application window opens September 15. If you’re approaching 65, plan to apply that September. If you’re already over 65 and have never applied, you have until March 15 of any year to lock in the next year’s savings.

FAQ

What is the income limit for SCHE in 2026?

Per the NYC Department of Finance, the combined annual household income limit is $58,399.

What is the deadline to apply for SCHE?

March 15 each year. If March 15 falls on a weekend or holiday, the deadline rolls to the next business day.

How much can SCHE save me?

It reduces the assessed value of your home by 5% to 50%, depending on income. Households earning $50,000 or less receive the maximum 50% reduction.

Do I have to renew SCHE every year?

No — SCHE renews every two years. The Department of Finance mails you a notice when renewal is due. Renewal applications can be filed online between October 15 and March 15.

Can I get SCHE if I own a co-op?

Yes. There is a separate online application for co-op owners. Both forms are available at nyc.gov/site/finance/property/landlords-sche.page.

What if my spouse is younger than 65?

If you own jointly with a spouse or sibling, only one of you needs to be 65 or older for the household to qualify.

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