New York STAR: Basic and Enhanced Credit and Exemption Rules for 2026
STAR cuts school taxes on a New York primary residence. The 2026 income limits for Basic and Enhanced STAR, credit versus exemption, and how to apply.
By Seayora Editorial Team · Published · Facts checked · 2 min read
Short answer: STAR, New York’s School Tax Relief program, lowers school taxes on an owner’s primary residence. Basic STAR has no age limit and is available as a credit to households with income of $500,000 or less; the older exemption, capped at $250,000 of income, is closed to new applicants. Enhanced STAR is for owners 65 and older, with income of $110,750 or less for 2026 benefits and $113,550 or less for 2027.
Key takeaways
- Basic STAR credit: household income of $500,000 or less, any age.
- Basic STAR exemption: income of $250,000 or less, only for owners who have received it since 2015 for the same home.
- Enhanced STAR: at least one owner 65 by December 31 of the benefit year, with income of $110,750 or less for 2026 benefits and $113,550 or less for 2027.
- New homeowners register with the Tax Department for the credit; the property must be the primary residence as of July 1.
What is STAR?
The School Tax Relief program, created by Real Property Tax Law § 425, reduces school taxes on a primary residence. It comes in two forms: an exemption, which lowers the school tax on the bill, and a credit, which the state pays to the homeowner directly. Both come in a Basic and an Enhanced version.
Who qualifies for Basic and Enhanced STAR?
| Benefit | Age | Income limit |
|---|---|---|
| Basic STAR credit | No age limit | $500,000 or less |
| Basic STAR exemption | No age limit | $250,000 or less; existing recipients only |
| Enhanced STAR, 2026 benefits | At least one resident owner 65 by December 31, 2026 | $110,750 or less |
| Enhanced STAR, 2027 benefits | At least one resident owner 65 by December 31, 2027 | $113,550 or less |
The Enhanced STAR income limit is adjusted each year, so check the Tax Department’s eligibility page for the benefit year you are applying for.
Should you choose the credit or the exemption?
New applicants do not have a choice: the exemption is closed to new homeowners, and they receive the credit. Anyone who has received the exemption since 2015 can keep it for the same primary residence. Moving ends the exemption, and the owner registers for the credit at the new home.
How do you apply?
- Make sure the home is your primary residence; to receive a STAR credit for a year, it must be your primary residence as of July 1 of that year.
- Register for the credit with the New York State Department of Taxation and Finance, not with the local assessor.
- For Enhanced STAR, the Tax Department checks income each year; keep your address and income information current.
Does STAR apply to rental property?
Only where the property is the owner’s own primary residence. A landlord who lives in a two- or three-family house as their primary residence may qualify; investment property where the owner does not live does not. See NYC property tax classes and rates for how exemptions fit into the city bill.
Frequently asked questions
What is the income limit for Enhanced STAR in 2026?
$110,750 or less for 2026 benefits, with at least one resident owner turning 65 by December 31, 2026. For 2027 benefits the limit is $113,550.
Can a new homeowner get the STAR exemption?
No. The exemption is closed to new applicants, who receive the STAR credit instead. Owners who have had the exemption since 2015 can keep it for the same home.
What is the income limit for the Basic STAR credit?
$500,000 or less of household income, with no age requirement.
Sources
- N.Y. Real Property Tax Law § 425, School tax relief (STAR) exemption, New York State Senate
- STAR eligibility, New York State Department of Taxation and Finance
How Seayora helps
Property tax center: Track exemptions, assessments and tax bills for each property you own.
This article is general information, not tax advice. Tax rules change and your situation is your own, so confirm the treatment with a CPA or enrolled agent before you file.
How we write and check these guides: editorial standards.
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