If you own a home in New York City and you have a documented disability, you may be cutting your property tax bill in half — or you may be missing the cut entirely because nobody at closing told you the program exists. The benefit is called the Disabled Homeowners’ Exemption (DHE), and the New York City Department of Finance administers it. It is not a tax credit, not a deduction, and not a rebate. It is a reduction of the assessed value of your home before the city calculates your taxes — which is why it lands on the bill as a clean, line-item savings every July.
This guide walks through DHE the way it actually works on a real bill: who qualifies, what counts as proof, how the income tiers translate into a percentage off your assessed value, and the one March deadline that decides whether you get the benefit this year or next. The form number is the DHE Initial Application (DOF SmartFile or paper PDF). The agency phone for one-on-one help is 929-252-7242 (NYC Mayor’s Public Engagement Unit). The legal authority is New York Real Property Tax Law § 459-c and NYC Administrative Code § 11-245.4.
What DHE actually does to your tax bill
DHE reduces the assessed value of your one-, two-, or three-family home, condominium, or cooperative apartment by a percentage that scales with your income. The maximum reduction is 50% of assessed value. The minimum, for owners at the top of the income range, is 5%. The percentage is applied to the assessed value used to calculate the property tax bill — meaning a 50% DHE on a home with a $40,000 assessed value cuts the taxable assessed value to $20,000 before your tax class rate is multiplied in. On a typical NYC Class 1 home, a 50% reduction can mean four-figure annual savings.
The benefit appears as a separate line on the property tax bill the Department of Finance mails (or posts in the online Property Tax Account portal) before the July 1 start of the city’s fiscal year. If you applied by the March 15 deadline and were approved, the savings start with the July 1 bill in the same calendar year. If you missed the deadline, you wait until the following July.
Who qualifies: the four-part eligibility test
There are four eligibility prongs. You must clear all of them.
1. Disability. You must submit documentation of your disability. The Department of Finance accepts any one of the following: a disability award letter from the Social Security Administration; an award letter from the U.S. Railroad Retirement Board or the U.S. Postal Service; a certificate from the New York State Commission for the Blind; an order from the chair of the Workers’ Compensation Board determining permanent total or permanent partial disability; or a Veterans Administration letter stating you are entitled to a veterans disability pension. If you do not have one of these letters on hand, request a benefits verification letter from SSA at 1-800-772-1213 before you start the application.
2. Income. The total combined income of all owners and their spouses cannot exceed $58,399 for the application year. Income is generally measured by adjusted gross income (AGI) on your most recent federal return, minus the taxable amount of any IRA distributions or individual retirement annuity distributions. If you received DHE prior to July 1, 2024, you also have the option to use the older method that allowed certain unreimbursed medical-expense deductions; the DHE application walks through both. If you don’t file federal returns, you can estimate income by totaling every source and subtracting taxable IRA distributions. DOF publishes an optional Income Calculation Worksheet (the SCHE/DHE Income Worksheet) you can use to do the math before you file.
3. Ownership. All owners must be people with disabilities — with two exceptions. If the property is owned by spouses, only one spouse needs to have the qualifying disability. If the property is owned by siblings, only one sibling needs to qualify. You may also be eligible if the property is held in a special needs trust where you are the beneficiary, or if you have a tenant with a disability whose lease grants them a life interest in the property.
4. Residency. The home must be your primary residence. If you are receiving inpatient care at a residential health care facility, the home may still qualify; DOF treats that absence as continuing primary residency for DHE purposes. Properties inside a Limited Profit Housing Company (Mitchell-Lama), Limited Dividend Housing Company, or redevelopment company are not eligible. Housing Development Fund Corporation (HDFC) properties in the Division of Alternative Management Program can be eligible — call your managing agent if you’re unsure of your project’s status.
One critical interaction: you cannot receive both DHE and SCHE (the Senior Citizen Homeowners’ Exemption). If you would qualify for both because you are 65 or older and have a disability, the Department of Finance enrolls you in SCHE — DHE is suppressed. SCHE and DHE use the same income table and the same 50% maximum, so financially you end up in the same place, but it’s worth knowing why your bill says “SCHE” instead of “DHE” if you have both conditions.
The income tiers, line by line
This is the sliding scale DOF publishes on the DHE page. Find your total combined income on the left; that’s the percentage cut to your assessed value on the right.
| If your total combined income is between | DHE reduces your home’s assessed value by |
|---|---|
| $0 and $50,000 | 50% |
| $50,001 and $50,999 | 45% |
| $51,000 and $51,999 | 40% |
| $52,000 and $52,999 | 35% |
| $53,000 and $53,899 | 30% |
| $53,900 and $54,799 | 25% |
| $54,800 and $55,699 | 20% |
| $55,700 and $56,599 | 15% |
| $56,600 and $57,499 | 10% |
| $57,500 and $58,399 | 5% |
Income just $1 over a tier boundary bumps you down a step. If you are within a few hundred dollars of a cutoff, check whether the taxable IRA distribution deduction moves you across the line — that is the most common math correction the program processes.
How to apply: online vs. paper, step by step
The fastest route is the online DHE Initial Application through DOF SmartFile. There are two versions, depending on what you own:
- One-, two-, or three-family home or condo: DHE Online Initial Application at nyc.gov/site/finance/property/landlords-dhe.page
- Cooperative apartment: DHE Online Initial Application for Co-ops, linked from the same page
Online filing is open from September 15 through March 15. You’ll need: your borough-block-lot (BBL) number (top of your last property tax bill or NYC Department of Finance’s Property Tax Account lookup), your disability documentation as a PDF or image, and your most recent federal tax return (or W-2s and 1099s if you don’t file). Plan for 30–45 minutes if your documents are organized.
Paper filers download the DHE initial application PDF from the same Department of Finance page (translations available in Arabic, Bengali, Chinese, French, Haitian Creole, Korean, Polish, Russian, Spanish, and Urdu). Mail the completed form with copies — not originals — of your supporting documents to:
New York City Department of Finance
Homeowner Tax Benefits
P.O. Box 311
Maplewood, NJ 07040-0311
You can also apply in person at any Department of Finance Business Center. Locations and hours are listed on nyc.gov/finance under “Contact Us.” Bring originals and copies — the Business Center staff will scan what they need and hand the originals back.
The deadline that matters
Applications must be postmarked or submitted online by March 15 to take effect on the following July 1 — the start of the city’s next tax year. If March 15 falls on a weekend or holiday, the deadline rolls to the next business day. The Department of Finance recommends filing well before the deadline so there is time to fix errors or supply missing documents. If your application is incomplete on March 15, you may lose the year even if you submitted the form on time.
Renewals: don’t lose the benefit you already earned
DHE is not a permanent grant. You must renew every year. DOF mails a renewal notice in the fall — the renewal application window runs from October 15 to March 15. The renewal form is shorter than the initial application because DOF already has your disability documentation on file; you’re primarily certifying that your income still qualifies and that the home is still your primary residence.
If you miss a renewal, the benefit drops off your July 1 bill and you have to reapply as a new applicant — which means re-submitting disability proof from scratch. The Department of Finance does process late renewals in some hardship cases, but there is no statutory right to a late renewal. Calendar the October-through-March window the same way you’d calendar an estimated-tax payment.
Where the savings show up on your bill
When the July 1 quarterly bill arrives, look for the line labeled “Exemptions” or “Abatement/Exemption” near the assessed-value section. DHE appears as a dollar reduction to the assessed value, typically right above the line where the tax-class rate is multiplied. If you also receive the STAR or Enhanced STAR benefit, those are separate line items — STAR is administered jointly by New York State and DOF, while DHE is a pure city-level reduction. The two stack: you can receive DHE and STAR/E-STAR on the same property.
If DHE was approved but doesn’t appear on the bill, the most common cause is a mailing-address mismatch — DOF approved the exemption to the BBL but flagged the owner record because the name on file doesn’t match the deed exactly. Call 311 and ask to be transferred to Homeowner Tax Benefits, or email DOF through the Contact form at nyc.gov/contactdof, and reference the application confirmation number.
Related programs that can stack with DHE
DHE is one piece of a broader homeowner-benefit map. These can stack with DHE (with the SCHE exception above):
- STAR / Enhanced STAR — a state-administered school-tax reduction for income-qualifying homeowners. Apply at tax.ny.gov or call (518) 457-2036.
- Veterans Exemption — a separate exemption for qualifying veterans, surviving spouses, and Gold Star parents. Same March 15 deadline.
- Clergy Exemption — a flat $1,500 reduction in assessed value (about $256/year in savings) for qualifying clergy. Same March 15 deadline.
- Disabled Crime Victim and Good Samaritan Exemption — for civilians who modified their home to accommodate a disability sustained as a crime victim or while preventing a crime. Same March 15 deadline.
The DHE Frequently Asked Questions page on nyc.gov walks through edge cases (life estates, trusts, mixed ownership) in more detail.
Getting one-on-one help
If the paperwork is overwhelming, the NYC Mayor’s Public Engagement Unit (PEU) provides free, one-on-one DHE and SCHE filing help by phone. Call 929-252-7242, weekdays. PEU specialists can walk through the form with you, tell you exactly which documents are missing, and submit the application on your behalf. The service is free and there is no income qualifier to use it. For general property-tax questions or for translations not listed above, call 311 and ask for Homeowner Tax Benefits.
FAQ
Q: What is the DHE income limit?
A: $58,399 in total combined income for all owners and their spouses, for the most recent tax year.
Q: How much does DHE save?
A: DHE reduces the assessed value of your home by 5% to 50%, depending on income. At the lowest income tier ($0–$50,000), the reduction is 50%.
Q: Can I get both SCHE and DHE?
A: No. If you qualify for both, the Department of Finance enrolls you in SCHE only.
Q: What’s the DHE deadline in NYC?
A: March 15. Applications must be postmarked or submitted online by March 15 to take effect the following July 1.
Q: Do I have to renew DHE every year?
A: Yes. Renewals run from October 15 to March 15 each year. DOF mails a renewal notice.
Q: What documents prove disability for DHE?
A: An award letter from SSA, the U.S. Railroad Retirement Board, or the U.S. Postal Service; a certificate from the NYS Commission for the Blind; a Workers’ Compensation Board determination of permanent disability; or a VA disability pension letter.
Q: Can I apply for DHE if I rent out part of my home?
A: Yes, as long as the home is your primary residence. If you have a tenant with a disability and a lease granting them a life interest, that can support eligibility even if you are not personally disabled.
Q: What’s the DHE application phone number?
A: 929-252-7242 for one-on-one filing help from the NYC Mayor’s Public Engagement Unit. For general questions, call 311 and ask for Homeowner Tax Benefits.
Sources
- NYC Department of Finance — Disabled Homeowners’ Exemption (DHE): nyc.gov/site/finance/property/landlords-dhe.page
- NYC DOF — Residential Property Tax Exemptions overview: nyc.gov/site/finance/property/residential-properties-exemptions.page
- NYC DOF — DHE Brochure (PDF): nyc.gov/assets/finance/downloads/pdf/brochures/dhe-brochure.pdf
- NYC DOF — SCHE/DHE Income Calculation Worksheet (PDF): nyc.gov/assets/finance/downloads/pdf/payment_operations/dhe-sche-worksheet.pdf
- NYC 311 — DHE article KA-02524 and Property Tax Exemption Assistance article KA-03120
- Legal authority: New York Real Property Tax Law § 459-c; NYC Administrative Code § 11-245.4
Tax advice in this article is informational. Consult a tax professional or the NYC Department of Finance for your specific situation.
