STAR Basics

Understanding STAR

The School Tax Relief (STAR) program offers property tax relief to eligible New York State homeowners.

Participants in the STAR program receive benefits each year in one of two ways, depending on when they became eligible.

Since 2016, the state has operated the STAR credit program (open to any eligible homeowner whose income is $500,000 or less). Through this program, homeowners receive a check in the mail from the Tax Department to apply to school taxes.

Prior to that, homeowners could qualify for the STAR exemption program, through which eligible homeowners receive a direct reduction on their school tax bill in the form of a property tax exemption. While the state is no longer adding properties to the exemption program, many homeowners may still see this “STAR credit” on their tax bills.

BASIC AND ENHANCED STAR

There are two types of STAR:

  • Basic STAR is available on a homeowner’s primary residence only and for households with an income of less than $500,000. Homeowners need to apply only once, and it remains in effect until ownership of the home changes. The exemption amount is calculated each year, and actual tax savings may change annually.

  • Enhanced STAR assists homeowners ages 65 and older with household incomes below a specific limit that is adjusted annually based on the rate of inflation. The income limit is applied to all owners of the property and any owner’s spouse who resides at the property. Enhanced STAR is available on the homeowners’ primary residence only, and requires an annual application with proof of income, typically by March 1.

HOW DOES STAR AFFECT SCHOOL DISTRICTS?

Local school districts are reimbursed by the state for property tax revenues that go uncollected as a result of STAR exemptions. Although STAR exemptions apply to school property taxes, school districts have no influence over the exemptions or tax savings. Because assessment data and equalization rates are not usually available during the spring school budget season, school districts frequently resist quoting future tax rates related to their proposed spending plans. Accurate tax information becomes available later in the summer before tax bills are sent to residents.

It is important to note STAR exemption amounts are determined by the Office of Real Property Services (ORPS) each August. Residents with questions about STAR should be directed to your district’s local assessor’s office or visit Tax NY Page for information.