New York State Star Program For Tax Relief

OHU50K Notes

So many people complain about New York State taxes, but have you heard about the New York State Star Program for tax relief?

The STAR program has been a significant initiative in New York State to provide property tax relief to homeowners, particularly for school taxes, and to make homeownership more affordable for eligible residents.

The New York State School Tax Relief (STAR) program is a tax relief initiative aimed at reducing property taxes for homeowners in the state of New York. The program was established to provide financial assistance to eligible homeowners and help alleviate the burden of property taxes, particularly school taxes.

The STAR program offers two types of exemptions: the Basic STAR exemption and the Enhanced STAR exemption.

Basic STAR Exemption

The Basic STAR exemption is available to all homeowners who own and occupy their primary residence in New York State and have a total annual income of $500,000 or less. This exemption reduces the assessed value of the home for school tax purposes. The amount of the exemption varies each year, and it is not available for properties with a market value exceeding a certain threshold, which is determined by the local assessor.

 

Enhanced STAR Exemption

 

 

The Enhanced STAR exemption is available to senior citizens aged 65 or older who meet certain income requirements. To be eligible, the total annual income of all owners and their spouses who reside in the home must be $88,050 or less in the base year (2021). The Enhanced STAR exemption provides a greater tax reduction compared to the Basic STAR exemption. It also requires homeowners to enroll in the Income Verification Program (IVP) to verify their income eligibility on an annual basis.

 

Good to Know

It’s important to note that the STAR program applies only to school district taxes and not to other property taxes, such as county or municipal taxes. Additionally, the STAR exemptions are not automatic. Homeowners need to apply for the program through their local assessors’ office or online through the New York State Department of Taxation and Finance.