New York STAR Credit and Exemption: Who Qualifies and How to Register

STAR (School Tax Relief) is New York’s main property tax break for homeowners. It lowers what you pay toward school taxes on your primary home. Today most people get it as a STAR credit: a payment from the state, sent around the time your school tax bill is due [4].

Credit or exemption?

There are two versions of STAR:

• The STAR credit: the Tax Department sends you a payment each year you’re eligible [5].
• The STAR exemption: a reduction taken right off your school tax bill. It’s no longer available to new homeowners. Only people who have received it since 2015 can keep getting it, for the same home [1].

By law, the STAR credit can increase by as much as 2% a year, but the value of the STAR exemption can’t increase [3]. That’s why some exemption holders choose to switch. If you switch to the credit, you can’t switch back [3].

Who qualifies

The basic rules [1]:

• Income counts only the owners and their spouses who live at the property. For 2026 benefits, it’s based on 2024 tax return information.
• Primary residence. The home must be where an eligible owner actually lives. The state looks at things like where you spend your time, where you’re registered to vote, and the address on your driver’s license and car registration.
• One benefit per couple. A married couple can get only one STAR benefit, unless they’re legally separated.
• Ownership. Homes owned by a corporation, partnership or LLC don’t qualify, unless it’s a farm dwelling.

Enhanced STAR for seniors

Enhanced STAR gives a bigger benefit to older homeowners. To qualify, at least one owner who lives in the home must be 65 or older by December 31 of the year the benefit is for, and household income must be at or under the Enhanced limit: $110,750 for 2026 [1].

The difference in size comes from how the benefit is figured. Basic STAR is based on the first $30,000 of your home’s full value; for 2026-2027, Enhanced STAR is based on the first $88,500 [2]. In some cases a surviving spouse can keep Enhanced STAR [1].

How to register

1. Register with the state Tax Department, not your town. Go to the STAR registration page on tax.ny.gov, or use the Homeowner Benefit Portal in your Individual Online Services account [4][5].
2. Do it soon after you move in. The Tax Department recommends registering as soon as possible. Late registrations are accepted for up to three years after the income tax filing deadline for the credit year [4].
3. Keep your confirmation number in case you need to contact the Tax Department [5].
4. Set up direct deposit if you want it. It’s optional and the fastest way to get paid. Enroll at least 15 days before the credit is issued, or you’ll get a check that year [4].

You don’t need to re-register each year. Once registered, the state reviews your eligibility automatically while you still own and live in the home [4].