Burner Prudenti: The STAR Tax Relief Program

Q: I have heard that New York offers a property tax credit called STAR. What do I need to know about this credit?

A: In New York, a property tax is issued to homeowners to fund public education in their local school district, referred to as a “school tax.” This school tax pays for classroom supplies, funds building repairs, and goes towards salaries for teachers and support staff in public schools near you.

These tax bills typically arrive in September, before the county and tax bill arrives in January. However, New York offers an exemption or credit towards these school taxes to homeowners who meet certain criteria, through a program called the New York State School Tax Relief, or “STAR,” for short.

STAR can either provide an exemption or a credit to a homeowner. A STAR exemption is a direct reduction off the annual school bill. However, this often yields a lower total benefit, as the amount deducted remains the same or can even drop from year to year. Additionally, this benefit is only available to homeowners who have been receiving it since 2015.

A STAR credit tends to be more beneficial to the homeowner. This provides a credit towards a portion of these school property taxes in the form of a refund check from the state, and the credit can increase by up to 2% annually.

There are two different benefit levels for STAR Credit: the basic STAR credit, which is available to all eligible STAR recipients, or the enhanced STAR credit, which is only available for eligible senior citizens over the age of 65 who meet a stricter income limit.

The basic STAR credit is available to all homeowners with a household income of $500,000 or less. However, each married couple can receive only one STAR benefit, and the credit only applies to a primary residence, regardless of owning multiple properties.

If you are a property owner who is at least 65 years of age, you are entitled to receive enhanced STAR benefits if your combined household income is less than $110,750 in 2026. For benefits in 2027, the threshold is slightly higher, at $113,550 or less.

The income limit changes each year based on the adjusted poverty level. Senior citizens can claim the enhanced STAR benefit in the calendar year where they turn 65, and only one owner needs to qualify for the property to get the credit.

Notably, if your home is in an Irrevocable Trust, and depending on the terms of the trust, you may still be able to receive the enhanced STAR credit. However, since the check will be payable to the Trust, the Trustee must deposit the check in a checking account in the Trust’s name, not your own personal account. Additionally, use of those funds is subject to the terms of the trust.

It is important to remember that you need to apply for the STAR credit in order to receive it. The benefit is not automatic. In addition, the actual dollar amount you save will vary based on where you live in New York State.

If you need assistance in applying for the credit, or would like to learn more about eligibility, a local expert in your area will be able to assist you.

About the Author

Frank Oswald, Esq. is an associate attorney at Burner Prudenti Law, P.C., focusing his practice on Trusts and Estates. Burner Prudenti Law, P.C. serves clients from New York City to the East End of Long Island, with offices located in East Setauket, Westhampton Beach, Manhattan, and East Hampton.