Photo: TrudiJ / Wikimedia Commons, CC0
The School Tax Relief program, known as STAR, reduces school property taxes for eligible New York homeowners. It comes in two forms, Basic and Enhanced, and two delivery methods, a credit check and an exemption on the tax bill. Changes that took effect for 2026 make Enhanced STAR easier to keep. Here is how it works, according to the state Department of Taxation and Finance.
Credit or exemption?
New homeowners today receive the STAR credit: the state sends a check, or a direct deposit, for the amount of the benefit, usually timed to arrive before school taxes are due. Homeowners who have received the older STAR exemption continuously since 2015 at the same home may keep it; the exemption appears as a reduction on the school tax bill. You cannot receive both for the same property.
Basic STAR
Basic STAR has no age requirement. The home must be the primary residence of an owner. The income limit is $500,000 or less for the credit and $250,000 or less for the exemption, counting the combined income of owners and their spouses who live at the property.
Enhanced STAR
Enhanced STAR provides a larger benefit to older homeowners:
- Age: beginning in 2026, only one resident owner, regardless of relationship to the other owners, must be at least 65 by December 31 of the benefit year.
- Income: the limit is $110,750 for 2026 benefits and $113,550 for 2027 benefits. Beginning in 2026, the limit applies only to the combined income of owners and spouses who primarily reside at the property; the income of nonresident owners is not counted.
- Which tax year: eligibility for 2026 benefits is based on 2024 income tax information.
For STAR purposes, income means federal adjusted gross income minus the taxable portion of IRA distributions. On a 2024 federal Form 1040, that is line 11 minus line 4b.
The automatic upgrade
Starting in 2026, people who receive the STAR exemption no longer need to apply to their local assessor for Enhanced STAR when they turn 65. The state notifies the assessor and upgrades the benefit automatically, provided the household is otherwise eligible. Credit recipients are also moved to Enhanced STAR automatically by the state when they qualify.
How to register
New homeowners register for the STAR credit with the Department of Taxation and Finance, online through the department’s STAR registration page or by phone. You will need the names and Social Security numbers of the owners and their resident spouses, the property address and the date you took ownership. Registering soon after closing gives the state time to issue the first check.
If you moved from a home where you received STAR, you must register again for the new home. If you sold a home that received the exemption, that exemption does not transfer.
Where to check your status
The department’s online STAR check delivery schedule shows when credits are mailed by school district. Questions about the exemption on a tax bill go to the town or city assessor. For the City of Albany, Troy, Schenectady and Saratoga Springs, assessor contact information is posted on each city’s website.
