NYC STAR and Enhanced STAR 2026: Income Limits, Forms RP-425-E and RP-425-IVP, and the 2026 Rule Change Every Senior Should Know

Enroll in the New York STAR property-tax credit, upgrade to Enhanced STAR at 65, and use the 2026 rule change that drops non-resident owners from the income test. Forms, phone numbers, and step-by-step walkthrough for NYC homeowners.

If you own a home in New York City and use it as your primary residence, you are almost certainly eligible for the School Tax Relief program — better known as STAR. It is the single most useful property-tax benefit available to ordinary homeowners in the state, it is free, and the only thing standing between you and a yearly check from Albany is one piece of paperwork most people only have to file once in their life. This guide walks through exactly how to enroll, how to upgrade to Enhanced STAR if you are 65 or older, what changed in 2026, and the phone number to call when something goes wrong.

The two flavors of STAR — and which one is yours

Under New York Real Property Tax Law §425, every eligible homeowner receives the STAR benefit in one of two forms:

STAR credit. A check or direct deposit sent to you by the New York State Department of Taxation and Finance (DTF). This is the only option open to homeowners today. If you bought your home, refinanced into a new STAR registration, or never enrolled before, you go through the credit program.
STAR exemption. A line-item reduction printed on your school tax bill. The exemption is grandfathered — only homeowners who have been continuously receiving it since 2015 still get it. The STAR exemption is no longer available to new homeowners. If you have it and want to keep it, do nothing other than stay eligible.

Inside both versions, there are two benefit levels:

Basic STAR — for any eligible owner-occupant, no age restriction.
Enhanced STAR — a larger benefit for seniors. For the 2026 benefit year only one resident owner must be 65 or older by December 31, 2026, regardless of how the deed is held.

Income limits for the 2026 benefit

This is where most homeowners get tripped up, so read carefully. New York verifies income against the tax return from two years prior. For the 2026 STAR benefit, DTF looks at your 2024 federal Form 1040 or New York Form IT-201.

The 2026 numbers, as published on the official DTF eligibility page:

Basic STAR credit: combined income of $500,000 or less.
Basic STAR exemption (grandfathered only): $250,000 or less.
Enhanced STAR (credit or exemption): $110,750 or less for the 2026-2027 school year.

The state defines income for STAR purposes as federal adjusted gross income minus the taxable portion of total distributions from IRAs. Practically, that means: on your 2024 Form 1040, subtract line 4b from line 11. On New York Form IT-201, subtract line 9 from line 19. That number is your STAR income.

The big 2026 change everyone needs to know

Starting with the 2026 benefit year, New York changed who counts toward the household income figure. Two pieces of this are new:

Only resident owners and their resident spouses are counted. If a non-resident relative is on the deed — for example, an out-of-state adult child added for estate planning — their income is no longer included in your STAR calculation.
Only one resident owner needs to be 65 to qualify for Enhanced STAR. Previously the age-65 rule had to be met by every owner unless the owners were spouses or siblings. As of 2026, one resident owner over 65 is enough, regardless of relationship.

If you were previously denied Enhanced STAR because a co-owner was under 65, or because a non-resident owner’s income pushed you over the limit, 2026 is the year to re-check eligibility. The income data DTF will look at is your 2024 tax return.

How to enroll in STAR — the actual steps

The New York City Department of Finance no longer accepts STAR or E-STAR applications. NYC DOF’s own page is explicit: every STAR application goes to New York State DTF. NYC homeowners enroll the same way as upstate homeowners. There is no NYC-specific form to file.

Step 1 — Verify you meet the four conditions

You own the home.
It is your primary residence (where you sleep most nights, register to vote, and keep your driver’s license address).
Your 2024 STAR income is at or below the limit for the benefit level you are claiming.
You are not already receiving STAR at another property. Married couples get one STAR benefit per couple unless legally separated.

Eligible property types: single-family houses, condominiums, cooperative apartments, manufactured homes, and farmhouses. Corporations, partnerships, and LLCs do not qualify unless the property is a farm dwelling.

Step 2 — Register online

Go to the state STAR registration portal at tax.ny.gov/star and click Register for the STAR credit. You will need:

The names and Social Security numbers of every owner and any owner-spouse who resides at the property.
The property’s primary address and the date you purchased it.
An estimate of 2024 income for every resident owner and resident spouse.
If applicable, the name of any non-resident owner (income not required for them as of 2026).

The portal walks you through a single online form. Plan on twenty minutes. There is no paper Basic STAR registration; everything is digital for new applicants.

Step 3 — Wait for your check or direct deposit

DTF issues STAR credit payments on a rolling schedule by school district. Most NYC homeowners receive their STAR credit in the late fall of the benefit year — STAR is paid after school taxes are billed, which is why first-time applicants sometimes pay a full school tax bill before their credit arrives. You can track the issue date for your area using the STAR Credit Delivery Schedule lookup at tax.ny.gov/pit/property/star/star-check-delivery-schedule.htm.

Upgrading from Basic STAR to Enhanced STAR at age 65

If you are turning 65 in 2026 and already get the Basic STAR credit, you do not need to file anything new. DTF will automatically evaluate your income and switch you to the Enhanced benefit if you qualify. The state will send you a letter when this happens. If you receive the older grandfathered STAR exemption (not the credit), the upgrade is not automatic. You must file two forms with your local assessor:

Form RP-425-E — Application for Enhanced STAR Exemption.
Form RP-425-IVP — Supplement to Form RP-425-E (enrolls you in the Income Verification Program so DTF can confirm income from your tax return each year — you do not have to re-file annually).

NYC homeowners who hold a grandfathered STAR exemption mail both forms to the NYC Department of Finance, since DOF still administers the on-bill exemption for properties already enrolled, even though it no longer accepts new applications. The deadline is the city’s taxable status date, which in NYC is March 15 of the benefit year.

Co-op and condo owners — read this section twice

If you own a co-op share, the STAR benefit still applies to you — the unit is your primary residence even though the land is owned by the corporation. For the credit program, you register the same way as any other homeowner. For the grandfathered exemption, NYC DOF runs a co-op-specific online application (the SmartFile co-op STAR/eStar portal) that the managing agent or your co-op board typically files on behalf of all eligible shareholders. If your monthly maintenance bill does not show a STAR pass-through line, contact your managing agent — they have likely missed an enrollment.

Condo owners file individually like single-family owners. Every owner who lives at the property must sign the application before it is processed.

What to do if something goes wrong

The single best thing you can do as a STAR applicant is keep a paper trail. Save the confirmation email when you register online. Save the Form RP-5300-WSC if DTF mails you one — that is the income request letter, and you have 45 days to respond using DTF’s online Income Verification Worksheet at tax.ny.gov/pit/property/homeowner-benefit-portal.htm.

If you miss the income verification deadline, DTF will downgrade you from Enhanced to Basic STAR for that year, or remove the benefit entirely. The state does allow a late Enhanced STAR application for good cause — typically illness, hospitalization, or a documented administrative error — but you must apply directly to DTF, not your local assessor.

For all STAR questions — registration help, income verification, missing checks, eligibility appeals — call the New York State Department of Taxation and Finance STAR line at (518) 457-2036, weekdays 8:30 a.m. to 4:30 p.m. The line offers a callback option so you do not have to hold. Have your property address and prior-year STAR account information ready.

STAR vs. SCHE — they are different programs

STAR is run by New York State and reduces the school portion of your property tax. SCHE — the Senior Citizen Homeowners’ Exemption — is run by NYC DOF and reduces the city portion of your property tax for owners 65+ with household income at or below the SCHE limit. They are separate. You can and should have both if you qualify. Filing for one does not file you for the other. SCHE applications go to NYC DOF; STAR applications go to NY State DTF.

Quick reference card

Basic STAR income limit (credit): $500,000 (2026 benefit, based on 2024 income).
Enhanced STAR income limit: $110,750 (2026 benefit, based on 2024 income).
Age requirement (Enhanced): 65 by December 31, 2026 — only one resident owner needs to qualify.
Forms (Enhanced exemption upgrade only): RP-425-E plus RP-425-IVP.
NYC application deadline (grandfathered exemption only): March 15, 2026.
NY State DTF STAR phone: (518) 457-2036, 8:30 a.m. – 4:30 p.m.
Underlying law: NY Real Property Tax Law §425.