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The STAR (School Tax Relief) Program in New York provides two tiers of property tax relief: Basic STAR and Enhanced STAR (E-STAR). Both programs are designed to help homeowners alleviate their school district tax burden, with different eligibility criteria and benefits.
Basic STAR vs. Enhanced STAR (E-STAR)
Basic STAR is available to all homeowners who meet specific criteria, which include having no age restrictions, living in the home as their primary residence, and maintaining a total household income of $500,000 or less.
Enhanced STAR (E-STAR) is tailored specifically for senior homeowners. To qualify, the homeowner, their spouse, or a sibling must be at least 65 years old by the end of the calendar year, and the home must serve as their primary residence. Additionally, applicants must already be enrolled in the STAR exemption program, and their total household income for 2024 cannot exceed $98,700.
For both programs, total income is calculated based on the federal adjusted gross income (AGI), excluding any taxable amounts from IRAs or annuities. Documentation of income is required to verify eligibility.
Potential Tax Relief Amounts
The tax relief homeowners receive through the STAR program can vary significantly depending on their location and the specific program they qualify for. On average, Basic STAR participants can expect to save around $290, while those enrolled in Enhanced STAR (E-STAR) may save approximately $650.
However, actual savings can be much higher in certain areas. For example, in 2023, homeowners in Albany County saved as much as $1,885, while those in Suffolk County saw savings of up to $2,695. The exact amount of tax relief depends on various factors, including the city, school district, and the total amount of school tax paid by the homeowner.
For homeowners who became eligible before 2015, the STAR benefit is applied directly as a reduction on their annual school tax bill. Those who established eligibility after 2015 receive the benefit in the form of a check or direct deposit.
Checking Enrollment Status
Homeowners should verify their enrollment status and understand how they receive their benefits by visiting the New York State tax website or contacting their local tax authority. This ensures that they are taking full advantage of the tax relief opportunities available through the STAR program.
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