After the presidential election, many interpreted the Republican victory as a sign that deep tax cuts implemented in 2017 would be extended; indeed, Crain’s New York Business notes that incoming Senate Majority Leader John Thune has already set out a plan for Congress to vote on this. There is also a chance that Congress could raise the SALT deduction for New Yorkers after it was memorably capped at $10,000 in 2017, having previously been unlimited.
However, one tax credit hasn’t been in the headlines lately, but has been available to New York State residents since 1997. This article explains what the School Tax Relief (STAR) program is, who is eligible, and how to apply for it.
However, one tax credit hasn’t been in the headlines lately, but has been available to New York State residents since 1997. This article explains what the School Tax Relief (STAR) program is, who is eligible, and how to apply for it.
In this article:
The STAR and STAR Enhanced Program
STAR, which comprises two related programs known as Basic STAR and Enhanced STAR or E-STAR, provides school district property tax relief to residents throughout New York State. However, some state residents benefit more directly from the credit than others.While the Basic STAR amount is usually just a few hundred dollars, in some school districts, Basic STAR and E-STAR credits are worth several thousand dollars. For example, in 2024-2025, the Basic STAR and E-STAR amounts in New York City ranged from $281 to $659. Outside the city, however, amounts in some districts were considerably higher. In the town of Ossining, just north of New York City, 2024-25 STAR credits range from $1,704 to $4,304.
While this may sound unfair, there is a reasonable explanation for the disparity. Most school districts in New York State finance their public schools primarily or exclusively through property taxes. In New York City, schools are supported by the city's general fund, which includes residential and commercial property taxes and other sources of revenue. The smaller STAR credit offered to New York City homeowners simply reflects the fact that they are paying a smaller portion of the city's overall education costs.
Eligibility
Unless your property is already benefiting from a 421a exemption (if you're unsure, you can look up your property's 421a exemption status here), you may be eligible for a Basic STAR or E-STAR credit.Basic STAR Eligibility
You qualify for the Basic STAR credit in New York City if you meet the following criteria:
You qualify for the Basic STAR credit in New York City if you meet the following criteria:
- You own and live in your primary residence
- Your total household income is $250,000 or less
- Your property is not already eligible for a 421a exemption
- If you're married, you're only applying the credit to one property (unless they are divorced or legally separated and living in two owned properties)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
E-STAR Eligibility
You qualify for the E-STAR credit in New York City if you meet the following criteria:
You qualify for the E-STAR credit in New York City if you meet the following criteria:
- You already have the Basic STAR exemption
- You or your spouse (or, if you live with a sibling, your sibling) will be 65 years or older by the end of the calendar year
- You own and live in your primary residence
- Your total household income is $107,300 or less
- Your property is not already eligible for a 421a exemption
- If you're married, you're only applying the credit to one property (unless divorced or legally separated and living in two separately owned properties)
Notably, for the purposes of the STAR program, income refers to the applicant's adjusted gross income. For the E-STAR program, income refers to the applicant's adjusted gross income minus any taxable amount of total distributions from individual retirement accounts.
How and when to apply
If you wish to receive a STAR or E-STAR credit in the upcoming tax year, which begins July 1, you can only apply between September 15 and March 15. In short, the window is open as of this writing.
There are two ways to apply: online or by mail. The online applications are available at STAR/E-STAR application. If you live in a co-op, use New York State's specific application for shareholders in co-ops.
If you're applying by mail, you can submit a Basic STAR or STAR to E-STAR paper application throughout the year, though your application will still only be processed between September 15 and March 15.
In most cases, the STAR credit is distributed as a check issued by the New York State Department of Taxation and Finance. Checks are also appropriately mailed out at the start of the school year. If you apply for and are approved for a tax exemption by the New York City Department of Finance, however, the exception is applied to your property tax bill. Whatever form it takes, the STAR and E-STAR credits are a welcome form of tax relief for eligible state and local property owners.
143 Meserole Street, #2B
$1,395,000 (-6.7%)
Williamsburg | Condominium | 2 Bedrooms, 1.5 Baths | 1,569 ft2
143 Meserole Street, #2B (Nest Seekers LLC)
Aura, #2B (Corcoran Group)
332 East 77th Street, #6 (Douglas Elliman Real Estate)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Would you like to tour any of these properties?
Contributing Writer
Cait Etherington
Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.
6sqft delivers the latest on real estate, architecture, and design, straight from New York City.
