The New York State School Tax Relief (STAR) Program offers significant property tax savings for eligible homeowners, providing much-needed relief in a state known for high living costs. The program, aimed at reducing school property taxes, has two distinct components: Basic STAR and Enhanced STAR (E-STAR). Each serves different segments of the population with varied eligibility criteria and benefits.
What is the STAR Program?
The STAR program is designed to help homeowners save on their annual property taxes, particularly those related to funding schools. Basic STAR is available to a broader range of homeowners, while Enhanced STAR focuses on seniors. Both programs offer a tax reduction, either as a credit or an exemption on annual school tax bills, depending on the timing of the homeowner’s application.
Basic STAR Eligibility
Basic STAR is available to all homeowners who meet a few key requirements. There is no age restriction, making it an attractive option for families and younger homeowners. However, applicants must meet the following criteria:
- Own and live in their primary residence
- Have a household income of $500,000 or less
Homeowners who qualify for Basic STAR can expect an average annual tax reduction of around $290, though the exact amount depends on their school district. Some residents in areas like Albany County received tax savings as high as $1,885 in 2023, while others in Suffolk County saw reductions up to $2,695.
For more specific information on how much you might save in your area, visit the New York State Department of Taxation and Finance website.
Enhanced STAR Eligibility
Enhanced STAR (E-STAR) is designed for senior citizens, offering more substantial savings. To qualify, homeowners must meet the following conditions:
- Be 65 or older by the end of the calendar year (spouses or siblings living on the property may also qualify)
- Own and live in their primary residence
- Already have the Basic STAR exemption
For 2024, the total household income must be $98,700 or less to qualify for Enhanced STAR. Income is calculated based on the federal adjusted gross income (AGI) minus taxable amounts from IRAs or annuities. E-STAR recipients can expect an average annual tax reduction of $650, though again, the exact figure depends on the school district.
How Do You Receive the STAR Benefit?
The method by which you receive your STAR benefit depends on when you were approved for the program. If you were eligible before 2015, the benefit comes as an exemption on your annual school tax bill. However, homeowners approved after 2015 receive their STAR benefit as a check or direct deposit from the state.
Do I Need to Reapply Every Year?
If you are enrolled in the Basic STAR program, you do not need to reapply annually. However, homeowners in the Enhanced STAR program must reapply every year to confirm that they still meet the income eligibility requirements. The state allows senior citizens who are enrolled to apply online, via mail, or through the homeowner benefit portal.
To simplify the re-enrollment process, New York State provides automatic renewals for seniors who have already enrolled in the Income Verification Program (IVP). Those enrolled in the IVP will have their income verified automatically each year, and their Enhanced STAR benefit will be renewed without additional paperwork.
Checking Your STAR Status
The state regularly updates STAR credit amounts and exemption savings. Homeowners can use their zip code to check the status of their STAR credit or exemption online. The state schedules updates by region: New York City updates in August, Nassau County in November, Suffolk County in December, and all other counties in October.
Homeowners should monitor their mail carefully if they opt to receive their STAR benefit by check, especially during the holiday season, when mail theft can be a concern. New York’s STAR benefits are expected to rise annually by 2%, offering continued financial relief for homeowners in one of the most expensive states to live in.
Conclusion
The STAR Program offers essential financial relief for New York homeowners, particularly for seniors through Enhanced STAR. By understanding the eligibility requirements and how the program operates, homeowners can ensure they maximize their property tax savings. With annual savings expected to grow, STAR remains a vital resource for combating New York’s high property taxes. To stay updated on your eligibility or to check your STAR benefit status, visit the state’s official website.
For more information, check out Kiplinger’s full article on the New York STAR Program.
