Money & Debt · Homestead (property tax)
Homestead Property-Tax Exemption in New York
How much the homestead exemption cuts the property-tax bill on an owner-occupied home in New York, which taxes it touches, and how to claim it, cited to the statute.
How the benefit works in New York
The size of the break, which taxes it applies to, and how to claim it.
Unlike the creditor homestead, which is usually automatic, the New York property-tax homestead has to be claimed. Register with the New York Department of Taxation and Finance through its homeowner portal. New homeowners get the STAR credit; the older STAR exemption is closed to new applicants.
| Rule | In New York | What it means |
|---|---|---|
| Benefit | STAR relief | STAR reduces school district property taxes. Basic STAR exempts the first $30,000 of a home’s full value from school taxes for owner-occupants whose income is within the limit. Enhanced STAR, for owners 65 or older with lower income, exempts the first $88,500 of value for the 2026 to 2027 school year. New homeowners receive STAR as a credit (a check or direct deposit) rather than an exemption on the bill. |
| Applies to | School district taxes only | Which property taxes the benefit reduces. Some homestead breaks touch only school taxes, not the full bill. |
| Must apply | Yes | Register with the New York Department of Taxation and Finance through its homeowner portal. New homeowners get the STAR credit; the older STAR exemption is closed to new applicants. |
| Income or age limit | See note | Basic STAR income limit is about $500,000 for the credit ($250,000 for the exemption). Enhanced STAR requires an owner age 65 or older with income of $110,750 or less for the 2026 to 2027 school year. These limits update annually. |
| Varies locally | Yes | The dollar savings depend on your school district’s tax rate, so the same STAR benefit is worth different amounts in different districts. The state publishes a maximum-savings figure by district each year. |
| Authority | N.Y. Real Prop. Tax Law §425 (STAR) | The controlling statute or agency rule. Read the full text through the source link below. |
STAR income limits and the value amounts update every year, and the exemption is closed to new owners, who now receive a credit instead. Confirm the current figures with the state tax department before relying on them.
Next steps to claim it
Concrete, neutral steps to get the homestead break in New York. This is general information, not tax or legal advice.
- Register for the STAR credit
New homeowners register once with the New York Department of Taxation and Finance through its homeowner portal. You do not apply through your assessor for the credit; the state pays it directly.
- Check whether you qualify for Enhanced STAR
If an owner is 65 or older and your income is within the Enhanced STAR limit (about $110,750 for the 2026 to 2027 school year), you get a larger benefit than Basic STAR. Confirm the current limit, since it changes yearly.
- Remember it only touches school taxes
STAR reduces school district taxes, not your whole property-tax bill. Your county and city or town taxes are separate. Knowing this helps set the right expectation for how much STAR saves you.
To claim or check the homestead exemption on your property tax, start with your state tax agency or county assessor. This resource explains the steps.
→ New York STAR ProgramThis is general information, not tax or legal advice. These figures change often and vary by locality, so confirm the current amount with your county before you rely on it.
What people get wrong in New York
New York’s homeowner property-tax break does not even use the word homestead; it is called STAR, for School Tax Relief, and this page covers it as the tax counterpart to the creditor homestead. STAR lowers your school district taxes only, not your whole bill. Basic STAR exempts the first $30,000 of your home’s value from school taxes if you own and occupy the home and your income is within the limit, which is around $500,000 for the credit. Enhanced STAR is for owners 65 or older with lower income and exempts far more, the first $88,500 of value for the 2026 to 2027 school year. A key wrinkle catches new buyers: the old STAR exemption on your tax bill is closed to new applicants, so new homeowners register with the state and receive STAR as a credit, a check or direct deposit, instead. The dollar value depends on your school district’s tax rate, and the income limits and value amounts change every year, so this is one to reconfirm annually with the state tax department.
Common questions
What is the New York homestead property-tax exemption?
New York’s main homeowner break is STAR, the School Tax Relief program, not a homestead exemption by that name. It reduces school district taxes for owner-occupants. Basic STAR covers the first $30,000 of value; Enhanced STAR, for seniors, covers the first $88,500 for the 2026 to 2027 school year.
How do I get STAR in New York?
New homeowners register once with the New York Department of Taxation and Finance and receive STAR as a credit, a check or direct deposit. The older STAR exemption that appeared on the tax bill is closed to new applicants, so registration for the credit is the current route.
What is the difference between Basic and Enhanced STAR?
Basic STAR is open to owner-occupants under a higher income limit and covers the first $30,000 of value. Enhanced STAR is for owners 65 or older with income of $110,750 or less for the 2026 to 2027 school year and covers the first $88,500 of value, a larger benefit.
What is the difference between the homestead tax and homestead creditor exemption in New York?
They protect against different things. STAR, the tax program on this page, lowers your school taxes. The creditor homestead exemption, a separate law, protects your home equity from a judgment creditor forcing a sale, in an amount that varies by county. One is a tax break; the other is asset protection.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.