A Quick View of New York STAR Tax Credit Program

New York STAR Tax Credit Program

The New York STAR Tax Credit Program (School Tax Relief Program) is a property tax relief initiative in New York State designed to reduce the school tax burden for eligible homeowners. The program provides savings on property taxes for primary residences, benefiting homeowners through either a tax exemption or a direct credit.

Key Features of the STAR Program

1. Two Types of Benefits:

• Basic STAR: Available to most homeowners whose income is below a certain threshold.

• Enhanced STAR: Provides additional savings for eligible senior citizens aged 65 or older whose household income meets specific limits.

2. Eligibility:

• The property must be the homeowner's primary residence.

• Income limits apply based on the type of STAR benefit.

• Enhanced STAR requires annual verification of income.

3. Method of Relief:

• For properties purchased before March 1, 2015, homeowners receive the STAR benefit as an exemption on their school property tax bill.

• For properties purchased after March 1, 2015, the benefit is provided as a credit in the form of a check directly from New York State.

4. Income Limits (2023-2024):

• Basic STAR: Total income must be $250,000 or less.

• Enhanced STAR: Total income must be $93,200 or less (limits may vary annually).

5. Savings Amounts:

• The amount of savings varies by location and the school district's tax rate.

6. Application Process:

• Homeowners can apply online through the New York State Department of Taxation and Finance.

• Once registered, the state automatically renews the STAR credit annually, but Enhanced STAR recipients must verify their income each year.

Transition from Exemption to Credit

Starting in 2016, the STAR program transitioned to a credit system for new homeowners. Those already enrolled in the exemption program before 2016 continue to receive their benefits as an exemption, while new applicants receive the benefit as a tax credit.

Benefits of the STAR Credit System

• The credit program provides inflation-adjusted savings that may increase over time, whereas the exemption amount remains fixed.

Common Questions

• Do I qualify for both Basic and Enhanced STAR? No, homeowners can only receive one type of STAR benefit at a time, depending on their eligibility.

• Do renters qualify? No, the STAR program is exclusively for homeowners.

For more details, visit the New York State Department of Taxation and Finance website or consult your local tax assessor.