Overview
STAR is the New York State School Tax Relief Program that provides a partial exemption from, or credit for school property taxes for owner-occupied primary residences of one, two, and three-family homes, farm homes, condominiums, cooperative apartments, or multiple-use properties of which a portion is used by the owner as a primary residence. You may not receive both the exemption and a credit.
Several years ago, New York State enacted major changes to the STAR program by closing the STAR tax exemption to new applicants and initiating a separate STAR tax credit for new enrollees. New STAR program participants now receive their STAR cost savings in the form of a check issued by the New York State Department of Taxation and Finance (NYSDTF), and notin a reduced school tax bill.
Basic STAR
Basic STAR has been extended to owner-occupied primary residences, regardless of age. New STAR applicants and current Basic STAR exemption recipients with household incomes greater than $250,000 and less than or equal to $500,000 will receive a STAR credit in the form of a check mailed from the New York State Department of Taxation and Finance. Current Basic STAR exemption recipients can continue to receive their STAR exemption for the same primary residence as long as their household income is $250,000 or less. New York State will directly notify homeowners whose STAR benefits are switched from an exemption to a credit. Any homeowner impacted by this change who pays their school taxes through a mortgage escrow account may wish to advise their lender that they have been switched from the STAR exemption to the STAR credit.
Enhanced STAR
Eligible senior citizens may receive reduced school taxes under Enhanced STAR. All owners must be at least 65 years of age in the year that the benefit takes effect. If owners are spouses or siblings, only one resident owner must be at least 65. Their household income limit for the 2024-2025 tax year must not exceed $98,700. The income limit applies to the combined incomes of all owners (residents and non-residents), and any owner's spouse who resides at the property.
Income Eligibility
Income eligibility for the 2024/2025 school tax year is based on household income information for 2022. Income is defined as the amount reported as Federal "Adjusted Gross Income" (AGI), less any "taxable amount" of IRA distributions.
Mandatory Enhanced STAR Income Verification Program (IVP)
New York State is responsible for determining income eligibility for qualifying Enhanced STAR applications annually. Property owners who are currently receiving the Basic STAR exemption and are applying for the Enhanced STAR exemption, and those who are already receiving the Enhanced Star exemption who did not register for the Income Verification Program (IVP), must submit an IVP application (Form RP-425-IVP) and an Enhanced STAR application to the Nassau County Department of Assessment.
Applications
- 2024-2025 Enhanced STAR Property Tax Exemption Application - For use by homeowners who are currently receiving the Basic STAR exemption who are applying for the Enhanced STAR exemption.
- Income Verification Form - Form RP-425-IVP Supplement to Form RP-425-E Mandatory for all Enhanced STAR Applicants
First-Time STAR Applicants
To apply for the STAR credit or to switch from the STAR exemption to the STAR credit, please visit the STAR websiteor call 518-457-2036 on weekdays, from 8:30 am to 4:30 pm. Once registered for the STAR credit, homeowners will not need to register again in the future, unless there has been a change in homeownership. The New York State Department of Taxation and Finance will review STAR credit registrations each year to determine whether a homeowner is eligible for the Basic or Enhanced STAR credit and will issue a check for the respective benefit.
Filing Deadline
STAR applications must be received by the Taxable Status Date of January 2, 2024.
If Your Income is $250,000 or Less: You Have the Option to Switch to the STAR Credit
If you are currently receiving the Basic or Enhanced STAR tax exemption and your household income is $250,000 or less, you will continue to receive a reduced school tax bill as long as you remain eligible. You do, however, have the option to switch to the STAR tax credit, which may provide a greater benefit. For those who choose to keep their STAR tax exemption, the savings on their school tax bill will be frozen and will never be greater than the previous year's savings amount. STAR tax credit enrollees may see annual increases of up to 2%. Please note, that if you choose to switch to the STAR tax credit, the state will not allow you to switch back to the STAR tax exemption in the future.
Primary Residence
Homeowners who own more than one residential property may only receive the STAR benefit on their primary residence, and cannot receive both the STAR credit and the exemption. The Department of Assessment or New York State may request proof of residency.
Special Eligibility Rules
Special eligibility rules apply for surviving spouses, nursing home residents, trusts, and life estates. View more details online.
Changes to Deeds
Residents should contact the Department of Assessment before changing the name on their deed or certificate of shares and before changing their primary residence, as the exemption status may be impacted.
