The New York State School Tax Relief Program, also known as STAR, exempts a portion of a home’s full value from school property tax for eligible homeowners. New York residents who own and live in their homes and meet certain income requirements can participate in the STAR program for their primary residence.

The program was launched in 1998-99 and originally intended to assist senior citizen (age 65 and over) homeowners, but STAR was quickly increased and expanded to include residential properties of other school district taxpayers.

Qualified homeowners receive a partial property tax exemption under the program, which reduces what they would otherwise owe on their property tax bills that year. Local school districts are, in turn, reimbursed by the state for the uncollected property tax revenues. Since its inception, STAR has shifted more than $3.2 billion from the local tax burden to the state.

Most STAR recipients save several hundred dollars on their property taxes each year. Several factors contribute to the calculation of the actual amount, including the assessed value of the home and its location (some counties are adjusted upwards to account for higher home values and higher taxes), the level of assessment in the community, and an annual adjustment based on the rate of inflation (for Enhanced STAR only).

The STAR Program has two kinds of exemptions:

• Basic STAR: This exemption is available for owner-occupied, primary residences regardless of the owners’ ages for those with household incomes below $500,000. The program works by exempting a portion of the full value of a home from school taxes. Each city or town has a different exemption amount. Homeowners only need to apply for Basic STAR once and it remains in effect for that property each year. For many homeowners, STAR is applied directly to property tax bills. However, in 2016, the state began transitioning STAR to a credit that comes in the form of a check directly from the state. When people buy a new home (first-time or otherwise), they need to register for this credit program to receive STAR.
• Enhanced STAR: This exemption is available for the primary residences of people age 65 and older with yearly household incomes that do not exceed a level set by the state. Like Basic STAR, this program exempts a portion of the owner’s residence from school taxes, but the Enhanced STAR exemption is larger. Again, each city or town has a different exemption amount. Homeowners must reapply for Enhanced STAR every year (to verify eligibility).

If you want more details about STAR, visit the state’s Department of Tax and Finance page to register for STAR.